Starbucks had three year geographical expansion strategy, that cover favorable demographic market and as well as supported by company operations. In this strategy, they select a specific large city as a hub where team of professionals employed to support goal of 20 new stores in first 2 years. Once they covered the hub, additional stores were opened in the region at every specific distance which relies on the tag line “Starbucks Everywhere”. It also helps them to cut the management cost and shortened customer lines at individual stores.
For the international expansion, Starbucks had two strategies either open company owned and company operated stores or license a reputable and capable local company who know how to target market in that particular market and have values and corporate cultures that are adjustable with Starbucks. Starbucks believed in licensing as compared to franchising because licensing permits more strong control over the licensees. By this strategy, now they are located in 34 countries with 10241 stores including licensed locations. Taste and employees are other aspects which reflect the success story of Starbucks. Same taste can be found in each store. Employee’s greeting with smile , polite behavior help to create brand image in customer’s perception.
Q2. How can Starbucks be successful across many cultures and in many countries? Are there any particular aspects about the company’s stores, products or services that touch all people throughout the world?
Starbucks can be successful across many cultures by adopting local environment and supply the demand of local customers. It can be easier by employing new local staff with training of Starbucks culture by the experts or licensing local vendor which helps them to target the local market trend.
Yes there are many aspects which make Starbucks different from its rivals. They provide high level of training to employee in order to perform job and they are offered performance based compensations and stock option and they are treated as assets of the company which makes feel proud to employees and motivated. Design of stores makes itself different from its rivals, they provide sofas and free Wi-Fi where customers can sit and do their work. Now a day people also interested in arrange meeting in…