International Expansion of Starbucks under the Background of Global Tourism Development/EXPANSION INTERNATIONALE DES STARBUCKS DANS LE CADRE DU DÉVELOPPEMENT DU TOURISME GLOBAL

By ZhenJia, Zhang | Canadian Social Science, January 1, 2006 | Go to article overview

International Expansion of Starbucks under the Background of Global Tourism Development/EXPANSION INTERNATIONALE DES STARBUCKS DANS LE CADRE DU DÉVELOPPEMENT DU TOURISME GLOBAL


ZhenJia, Zhang, Canadian Social Science


Abstract:

In 1995, with the rapid development of tourism industry, Starbucks began to adjust its business strategy to exploring foreign opportunities. To fulfil this objective, it used many strategies, such as two main business strategies: license and joint venture; HR strategy: maintaining quality workforce; operations strategy: multiple channels of distribution and design strategy. During the process of its international expansion, it met several troubles such as stiff competition from well-established existing players; market saturation and culture challenge, and also took corresponding measures to overcome those difficulties. To pursuit success in the foreign markets, it is very important to export exactly the unique nature of shopping at Starbucks, like its unique corporate culture, coffee services, exclusive taste, etc. Then challenges Starbucks may meet for its further expansion into a specific country-China is proposed.

Key words: International expansion, Starbucks, Tourism development

Résumé: En 1995, avec le développement rapide de l'industrie touristique, Starbucks se mettait à ajuster sa stratégie commerciale pour explorer ses opportunités étrangères. Pour accomplir cet objectif, il utilisait des stratégies tels que les deux principales opportunités commerciales : la licence et le joint-venture, HR stratégie : maintenir la productivité qualitative ; stratégies d'opérations : multiples voies de distribution et la stratégie de design. Pendant le processus de son expansion internationale, il a produit plusieurs troubles comme la compétition vivez par les existants établis ; la saturation du marché et le défi des cultures. Aussi il a pris des mesures correspondantes pour surmonter ces difficultés. Pour poursuivre le processus dans le marché international, il est très important d'exporter exactement la nature unique de shopping dans Starbucks, comme son unique culture corporative, des cafés services, le goût exclusive etc. Après les défis. Starbucks pourrait connaître une expansion d'avantage dans un pays spécifique - La Chine est proposée.

Mots-clés: expansion internationale, Starbucks, développement touristique

1. INTRODUCTION

Rapid development of international tourism industry pushes more and more local people outside America are familiar with Starbucks coffee shop around the world and poses new opportunities for the extend of Starbucks enterprises. Hence, it is essential to detect trends and understand strategic issues that stem from a global economy. This report studies the international expansion process of Starbucks coffee shop, a leading group in the worldwide coffee market. It also analyses the troubles Starbucks met during its process and how it overcame those troubles, based on its unique nature of shopping and the strategies it used for during the same period. Finally, the report tries to seek the challenges Starbucks may meet in its further expansion into China, a very large potential customers market.

2. ANALYSIS OF STRATEGIES USED FOR ITS INTERNATIONAL EXPANSION

In 1995, with the development of global tourism industry and almost 700 stores across the United States, Starbucks began to adjust its business strategy to exploring foreign opportunities. This decision was not made by chance. Some analysts believe that the United States coffee bar market may be reaching saturation. They point to the fact that there have been some consolidations as bigger players snap up some of the smaller coffee bar competitors. Further, they note that Starbucks' store base is also maturing, leading to a slowdown in the growth of their unit volume and the firm's profitability. Higher coffee costs have also cut into their margins, intensifying the competition in what has now become a crowded market (Mclean, 2000). Recognizing this, Starbucks has turned its attention to foreign markets for continued growth.

2.1 Two main business strategies: License and Joint Venture

In 1996, Starbucks invested $1. …

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