Presented by: Nomin
Josie
Elaine
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Summary –Elaine
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Question 1-Elaine
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Competitor Analysis-Nomin
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Question 2-Nomin
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Question 3- Josie
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Conclusion-Josie
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A new concept in 1987 by Schultz.
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The reasons of Starbucks’ success.
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Mode of entry into international markets.
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Problems in international operations.
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Six ways to enter a foreign market: Exporting,
Turnkey Projects, Licensing, Franchising, Joint
Ventures, and Wholly Owned Subsidiaries.
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Starbucks’s Three-Pronged Strategy
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The Advantages of Starbucks’ Strategy
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Three Main Competitors:
◦ Nestle.
 McDonalds
 Dunkin Donuts.
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Nestle is famous for instant coffee.
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McDonalds is the largest fast-food enterprise
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Dunkin Donuts is an international donut and
coffee retailer.
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Starbucks faced with problems because of
“No Smoking” rules
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In Europe, Starbucks faced stiff competition
with local retailers.
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Starbucks offered a segregated section for
ladies
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A young generation would attracted to
Starbucks.
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In Asia, Starbucks offered curry puffs and
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meat buns.
Joint venture is a acceptable to Starbucks.
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Political Risk
-Howard Schultz, alleged closeness to the
Jewish Community Arab countries’ boycott
of American goods.
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In Europe:
◦ -Uncertified Coffee Beans
◦ -Unqualified Trained Workforce
◦ -Unsuitable Real State (Locations)
◦ -Unreached Joint Ventures& Licensing Agreement
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Stiff Competition from Local Players:
◦ In England, Overprice
◦ In Germany, Competitors “Stole” it’s Strategies
◦ In France, “Traditional Strong French Coffee, and
“No Smoking” Principle
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Japan, the largest overseas market
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Young people lose their interests
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Rapid Expansion: Store eats Store
Short-Term
-Cost Cutting Policy
-Close Loss-Making Stores
-Strengthen Local Specialty
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Long-Term
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Rethink its entry strategy
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Focus on pricing
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Caution volatile political risk and complex
business environment