Starbucks - International Business Essay Example | Topics and Well Written Essays - 3500 words

Starbucks - International concern - Essay ExampleAlthough, previous researchers like Roby (2011) conducted research on international enlargement strategy of Starbucks exactly these researcher focused much on marketing aspects of international expansion strategy of iconic java retailer but strategical dimensions of Starbucks international expansion remain scarcely discussed by scholars. In order to fulfil scarcity of research regarding strategic dimensions of Starbucks international expansion, this essay will try to slop light on pertinent issues regarding international expansion of Starbucks. Key objective of this paper will be to answer three questions, 1- how internal resources capabilities are supporting Starbucks to achieve success internationally, 2- how Starbucks has addressed challenges during international expansion and 3- what are the strategic initiatives that are taken by Starbucks to achieve success while expanding business internationally. In such context, busines s background Starbucks will be discussed in order to develop background for strategic analysis. Back Ground Analysis Business Matrix of Starbucks Starbucks deal was established by Zev Siegl, Gordon Bowker and Jerry Baldwin during the year 1971 and the caller is headquartered at Seattle, Washington, U.S (Starbucks, 2012). The company started its operation through opening single store in Pike power Market of Seattle while in the next 42 years Starbucks corp has expanded its operation everywhere 61 countries (Starbucks, 2012). According to annual report published by Starbucks Corporation for the financial year stop 31st December, 2012, the company maintains distribution channel containing more than 10,000 stores (including licensed and owned stores) within USA and more than 20,000 stores across the world (including licensed and owned stores). Starbucks Corporation specializes in fling various coffee drinks, beverages, divers(prenominal) types of hot drinks, side dishes, salads e tc (Starbucks, 2012). Market capitalization Starbucks close to US$38 billion while gross revenue revenue of the company hovering over US$ 12 billion. Starbucks Corporation faces competition from not only selfsame(prenominal) segment players but also from competitors who offer cross segment products. For example, Starbucks offer similar kind of offering as Dunkin Brands, Green mountain coffee while in domestic and international market Starbucks Corporation faces intense competition from cross segment players like Nestle, McDonalds, Kraft Food and Wendys International. Why Starbucks has been so winning to penetrate in distant markets while its competitors are gasping for maintain margin product differentiation counterbalance? Lee (2010) pointed out that competitive advantage for Starbucks lies on its ability to customize its product portfolio and service flux in accordance with the macro environmental requirements. Lee (2010) identified three strategic moves that have helped Starb ucks Corporation to achieve success in international market such as, 1- establishing licensing and partnership with distribution partners that can cut dimensions of risks and contingency factors associated with expansion in international context, 2- differentiating in terms of product portfolio and service customization as per socio-cultural conflict in international countries and 3- customizing its integrated marketing communication as per socio-cultural divergence in international countries. In such context, Boston Matrix of Starbucks product portfolio