Starbucks Case Study

620 Words3 Pages
Taylor Pullen Case #1 Starbucks 1. Starbucks expanding globally can have a profitable outcome, but there are many elements that will need to be altered for the company to be able to survive. Different cultures have different preferences, so there is the controlled element of changing the product to meet other countries wants. They have to think about the locations of their stores, and how much investment they are willing to put into each country. Starbucks may need to change the look or size of the store, depending on how many customers they expect to have. They will also have to change the prices of their products to match the standard of living in other countries. 2. Many risks come with opening a new store no matter what. Entering a global market brings a whole new set of risks that a company has to consider. The biggest risk in my opinion is failure. Starbucks is an American company, and doesn’t know every other country’s culture. There is always the possibility of opening a restaurant in a country that does not enjoy coffee. Since the company is determined and willing to change, they would have to alter the menu to satisfy each country. This is also a risk because they could be putting more time and money into something that may not be worth it in the end. A company is not going to be able to control how much profit they will make off of a certain store, and sometimes it wont even be worth it to open it in a certain location. Another risk is competition. Starbucks is going into a place that is out of their comfort zone to compete with companies that have been in the area for a long time. People will either be excited to the new idea, or they will not be willing to pay so much for expresso that they have been buying for years at a different company. 3. Starbucks has a pretty good overall corporate strategy. The company itself is
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