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Analysis of Starbuck's International Expansion

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  1. A differentiation advantage
  2. Human resource management
  3. The foreign entry strategy
  4. Replicating and transferring the organizational capabilities
  5. Sustained relationship with beans farmers
  6. Extension of the brand and the products

Seattle-based Starbucks is the world's largest seller of premium-brewed coffee with over 8,400 stores, including 2,000 stores spread in 31 foreign countries. Starbucks used an international strategic approach to achieve its high level of international development across the globe. Starbucks built an outstanding competence in the management of retail outlets, selling high volumes of premium coffee-based drinks. The company is expanding outside the U.S. by replicating its business model in order to reach a global market. In this study we will explain how Starbucks built this core competence, and how it applied its model abroad in order to meet a global expansion.

[...] To sustain its growth and expansion, Starbucks is following a strategy of innovation in order to create new products, attract new customers and to make old ones come back (Juniper and Moore, 2002). As a follow up of this activity, in 2002, Starbucks launched its Crème Frappuccino, the company's first non-coffee blended drink. The Frappuccino was extremely important for the long-term development of the Frappuccino brand, representing a tremendous way in order to reach non-coffee drinkers. Through an acquisition, the company introduced a range of Ice blended Teas (Starbucks website). [...]

[...] (2005) ?Starbucks: More than a Cup of Coffee?. Cornell Hotel and Restaurant Administration Quarterly Theodore, S. (2002): ?Expanding the coffee experience?. Beverage Industry Anonymous (1996): ?Starbucks - investing in people as a route to profit and growth. International Journal of Retail & Distribution Management MacLean, B. (2007) Starbucks: Building Relationships with Coffee Growers Global Business Today - Interactive resource Video (highered.mcgraw- McGraw-Hill Online Learning Center Juniper, C. and Moore, M. (2002): ?Synergies and Best Practices of Corporate Partnerships for Sustainability?. International Journal of [...]

[...] Its strong corporate culture instills a sense of identity among employees that facilitates communication and the building of organizational know-how and routines, at the worldwide company level. Starbucks adopts an inside system for assessing the current position of the corporate culture, and to assess employees' relationship with it (Leung, 2006). Questions about their overall job satisfaction and commitment to the company are written down on questionnaires, and most of them are filled out electronically. These questions are designed to gauge Starbucks' progress towards its key values, and provide a great work environment where people treat each other with respect and dignity. [...]

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