Essay - Starbucks Confronting Possible Market Saturation in Its Domestic Market, One...

Starbucks

***** possible market saturation in its domestic market, one of the largest sources of opportunity for Starbucks is to optimize operations on a world-wide sc*****le by m*****imizing costs and maximizing revenues. This can be accomplished by leveraging it tremendous technology, manufacturing efficiencies, brand name, and capital across countries. The major thrust of Starbuck's global strategy is ***** build a global br***** to target customers in all major markets throughout the world. However, even with instant name recognition, the company will face enormous challenges in applying its ***** business model to work in many foreign markets where it has lim*****ed experience and faces threats of cultural clashes that could impede market acceptance.

***** aggressive expansion strategy of adding more than 18,000 stores is risky ***** it ought to consider a more m*****nageable pace. To reduce risks, Starbuck is currently forming alliances in some countries, unlike its domestic ***** where the ***** are largely owned by ***** *****. Relying on experienced partners a*****oad should help Starbucks identify successful locations, sift through local tax and legal *****sues, give Starbuck s*****res more community support and make necessary ***** adjustments to operations. But, it will most likely be more difficult for the company to control expenses such as real estate and labor costs and ***** standardize ***** where desirable.

As a global company, Starbucks h***** tremendous ***** to leverage ***** brand across ***** *****. However, ***** do so, *****'s going to have to learn to act like a ***** comp*****ny, ***** that adjusts products, prices and services to local *****. There's ample evidence ***** *****d menus and stores may not ***** well in France ***** there is a preference for d*****rk espres***** and in Ch*****a where people consume tea. And, Starbucks is clinging to charging prices similar to those in the United States ***** though the *****comes in countries such as China are dramatically lower. High prices in low-income countries will certainly prevent the type of mass consumption that Starbucks has created in ***** ***** States. On the service side, ***** may have to accommodate local traditions. For example, French cafes serve ***** facilitate social interaction just as much ***** offering coffee.

Brand ***** ***** a mixed blessing ***** St*****rbucks. While there are those who immediately recognize the name and may be drawn to a Starbucks s*****re for this very reason, ********** are also those who associate it with anti-Ameri***** feelings or dislike for large global corporations. Certainly, much of this problem is beyond Starbucks' control, but it can and should be aware of ***** cultural sensitivities ***** consider them into its marketing and operational ef*****ts. Further, the company should plan for more operational volatility *****cause ***** parts ***** the world are confronted with ***** that are greater ***** in ***** United ***** as the Israeli conflict with Palestinians in Tel Aviv that ********** store closings h***** shown.

In summary, Starbucks has excellent opportunity for growth ***** international expansion. Yet, it appears the company ***** lessons to be learned in how to act like