3. Why do you think that Starbucks has used joint ventures with local companies to enter many foreign markets?
Establishing a joint venture with a foreign company has been favored for entering a new market. Joint ventures give a company the advantage of benefiting from local partners knowledge of countries competitive conditions, culture, language, political systems, and business systems. They can also gain benefits by sharing costs and risks with a local partner when development costs and risks are high when opening up a foreign market. It’s also easier for them to set up operations overseas when they have a local partner rather than trying to enter on their own. Starbucks used the joint venture to successful globalize and best suit the foreign cultures that they were pursuing.
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2 comments:
Question #2
Starbucks is very good at adjusting to the different cultures ad communities in which they are located. The fact that they are making these changes to be successful in all types of communities makes me believe they are trying to use the localization strategy. They seem to be having success through studying foreign cultures and making the proper changes. They use all of their information to make each situation most suitable for their customers while also making the proper adjustments to make large profits.
Question #4
Starbucks chose Japan as its first foreign market because Japan has the most people of any country in the world. It was also a good idea to start in Japan because if you can make your business work in a place filled with billions of people and be successful you can do it anywhere. I think the reason because they chose Britain next was because they didnt want the Seattle Coffee chain to expand and blow them out of the water. It was smart to buy the Seattle Coffee business because it eliminated competition between themselves being Starbucks and the Seattle coffee people. I think they waited until 2002 because Starbucks wanted to make sure their business would work in other countries before expanding on the global market.
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