Starbuck Essay

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Marketing Institute of Singapore Training Centre Diploma in Sales & Marketing Management (Part-Time) Module DSM401 – International Marketing 1st Intake, Semester V Lecturer: Mr. Jonathan Lee Case Study Prepared by : Zulkeflee Kamis (S1762425C) Case Study Assignment –International Marketing Case Study on STARBUCKS Question 1: Identify the controllable and uncontrollable elements that Starbucks has encountered in entering Global Markets. Answer: Controllable Elements: * Channel of Distribution: Expansion of biz. In specified location: Global stores are control directly by Starbucks Management. * Placement: Starbucks coffee shops environment is a key point of its success, offering a warm and pleasant place. * Advertisement: local level, focus on its target market. * Product: Offering a recognised and high quality coffee, supported by its worldwide brand awareness. Suiting coffee tastes and mixtures to suit the local flavour. Starbucks also sells sandwiches, dessert & CD to boost its revenue Uncontrollable Elements: * Risk of terror attacks: Vulnerable to terrorism as it is perceived as a symbol of the free- market capitalism, global brand (Anti- Globalisation) and an American company (Anti Americanism) * Competitors: Several companies are introducing a wide range of flavours and varieties of coffee, thus having similar products such as McCafe, Coffee Bean, etc. * Economic Situation: Coffee prices. As it is a commodity, the price of coffee fluctuates. Starbucks is heavily reliant on the supply and on the prices of coffee. Although Starbucks has supply agreements with suppliers in advance, the company could still face problems due to fluctuating coffee prices. Other factors, such as weather and economic conditions in coffee producing countries,

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