For this discussion, the case explores the international expansion of Starbucks. The company has expanded over the last thirty years from a single store in Seattle to more than 20,000 locations spread across 64 different countries. As Starbucks has expanded, it has been forced to meet the challenges of operating in different cultures and political systems. Today, Starbucks is focused on continuing its global expansion, particularly in China. Discussion of the case can revolve around the following questions.
Discuss the following questions with your classmates on Blackboard. Before you begin, make sure to read the full closing case text from Chapter 13.
QUESTION 1: Starbucks prefers a combination approach to foreign market entry: the use of joint ventures and licensing. Do you agree with this approach? Why or why not?
QUESTION 2: Many would argue that Starbucks coffee is expensive, and yet customers get “value” for their money. How do you think Starbucks has been able to transfer this business model and value proposition to international markets?
Post your answer by creating a new thread under this forum. Answer both questions, in a short answer format (no less than 75 words each)