Starbucks is an international specialty coffee chain company. Operating more than 16,000 stores in over 50 countries worldwide to date, it is the largest coffeehouse company in the world (Starbucks Corporation 2010). Set back in year 1971, Starbucks specialized in coffee and other related beverages such as Italian-style espresso beverages, cold blended beverages, and a selection of premium teas, also with certain related businesses like complementary food items, coffee-related accessories and equipment (DataMonitor 2010). Starbucks’ business operation can be breaks down into three segments – the United States, international, and global consumer products group (CPG). The United States and ...view middle of the document...
Starbucks management has had an obligation to further drive the company further thus able to create and maintain a strong international marketing culture within itself.
To maintain the rapid growth the company begun to expand overseas through Starbucks Coffee International a wholly own subsidiary. Starbucks was first opened non North American store in 1996 in Tokyo, Japan through joint ventures and then it expanded into south-east Asia, Europe and Middle East. When they are expanded their business internationally, they focus on the partnership first then country. They rely on local connection to get everything for business purposes. Starbucks is looking for business partners for expansion of their business.
Starbucks Mission statement for diversification:
* Starbucks’ corporate mission statement is as “Establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining our uncompromising principles as we grow”. Starbucks established the following principle that is used to compare appropriateness of diversifications (Robert 125)
* Provide a great work environment and treat each other with respect and dignity.
* Embrace diversify as an essential component they have done
* Apply the highest standards to purchasing, roasting and fresh delivery of the coffee.
* Develop passionately satisfied customers all of the time.
* Contribute positively to their community and environments.
* Recognize that profitability is essential to future success.
To enter into the international market Starbucks used three methods of market entry as part of their global strategy. These are: Wholly owned subsidiaries, Joint ventures, Licensing and Acquisition. Nowadays, Starbuck is trying to expand their business by pay $620 million in cash to buy Teavana Holdings Inc., which sells high-end loose leaf teas in 300 shopping mall locations. The plan is to grow Teavana's footprint beyond the suburban mall with stand-alone shops around the world, Starbucks would add tea bars that serve prepared drinks in existing Teavana store, Starbucks chief executive Howard Schultz said. Starbucks plan to do something very similar overtime with Teavana. And they will make and serve Tea as what they did for coffee. The deal marks the third complementary acquisition over the past year from Starbuck, which is looking for new avenues of growth beyond its core coffee business. And with Teavana, they forecast in 2015 they would have total 500 stores in the US. Besides, shares of Atlanta-Based Teavana, which has stores in the US, Mexico, Canada and Kuwait, jumped 52.5% to close at USD15.45 when Starbucks acquisition Teavana.
* Starbucks expand its business by the multipronged approach to capture new customers
The first thing, to know how Starbucks success as today we are going to analyze its marketing mix which provide information of product, place, promotion and price of Starbucks in over the world which we can say “Starbucks’s global...