Market Entry Strategies of

Introduction
It is one of the leading international food retailing chains with $4.2bn
revenue.
It operates with 16,635 stores in 50countries, including 11,068 in the
united states, while licenses and franchises operates more than 7,800 units
worldwide.
It decided to enter international markets using a three-pronged strategy
a. Joint ventures
b. Licensing
c. Wholly owned subsidiaries

 Before entering a foreign market, Starbucks focused on studying the

market conditions for its products in the country.
Experienced managers from Seattle handled the operations like they
opened a few stores in trendy places as a part of their test marketing.
After test marketing, local baristas were given training for 13 weeks in
Seattle as they never compromise on their basic principles.
It ensures similar coffee beverage line-ups and No smoking rules in all
its stores across the globe.

Canada and Japan

It operates in Canada through wholly-owned subsidiary, Starbucks
Coffee Canada.
Starbucks entered into a joint venture with Sazaby Inc. to open
Starbucks stores in Japan.
Analysts advised Starbucks to forego its principles such as No
Smoking
Due to high rents in japan they also advised to ensure that the size of
the stores would not be more than 500 sq.ft.

 Starbucks never comprised on their basic principles and they proved

that analysts wrong as they continued with No Smoking principle and
the size of the store was 1200-1500 sq.ft similar to their stores in US.
Starbucks took advantage of its local partner Sazaby about Japanese
coffee drinking happiness and introduced new products.

Frappuccino

Green Tea

Asia
It was successful in attracting young crowd in all its Asian markets, as
the young people in these countries were eager to intimate the
American culture.
They offered curry puffs and meat buns in Asian markets as they want
prefer to eat something while having coffee.

Europe
Analysts felt strong coffee drinking culture in Europe posed
opportunities for Starbucks.
In 1998, Starbucks opened its first store in England and soon
expanded its presence to Switzerland, Germany and Greece.
They attracted young people over there where as old people stick to
the existing coffee houses.
Unlike traditional European coffee bars, Starbucks ambience and No
Smoking environment and self-service mode of operation made them
success in Europe.

Questions
1. What made Starbucks enter the international market?
2. What strategy is adopted by Starbucks for international expansion?
3. What are the various risks that a company faced while entering the
international market?

Thank Y u