Starbucks: Delivering Customer Service
What challenges/obstacles would Starbucks face expanding into international markets from the following perspectives? * The macro environment: the economic environment all over the world is just recovering from the 2008 crises. Developing countries such as India, Brazil, Russia, Mexico, to name a few, are experimenting a greater growth than the most developed countries (US, France, UK). These markets are very attractive to Multi National Enterprises (MNE), and they hadn’t been as exploited as the US market, where many Starbucks shops closed due to economic crisis and increase in fuel prices. Europe is still trapped in a very severe recession and will not experience economic growth or a notable performance in the next couple of years.
* The industry: in the last couple of years many competitors have entered the soft drinks / coffee derivatives industry. In the case of my country (Mexico) a local brand named “Black Coffee Gallery” (BCG) has been giving a very tough time to Starbucks. This brand incorporates in its chain supply local pastry products and Mexican coffee beans, which has originated a “consumer awareness” of local (Mexican) products consumption. BCG offers basically the same products as Starbucks but more aware of the needs and personal taste of the Mexican population. The prices of BCG are just a little below Starbucks’s and quality of the drinks is the same, and in my personal opinion pastry is better and cheaper. Another thing that is very appealing from BCG is that they incorporate well known Mexican artist’s paintings in the walls of the shop, so that gives a very cool vibe to the place as a whole. Right now there’s a Tea shops boom in Mexico with the arrival of TEAVANA, a premium retail tea shop and bar.
* Consumers: in my opinion consumers are now used to Starbucks and the way the business works, it’s no longer an innovative or personalized “experience”. Since the year 2002, Starbucks business model, delivering on service and value proposition has been the same, so if they want to keep on growing in the USA and internationally