Sunday, November 18, 2007
Starbucks- Question # 3 - Sandra Adams
Starbucks has used joint ventures with local companies to enter many of the foreign markets because it provides them with a competitive advantage by teaming up with someone who knows the culture of the country. By using joint ventures, Starbucks has become more successful in integrating the company into the culture of these countries because they hold insider information on what the customer is looking for in the different locations. By providing each country with what they want from Starbucks, the company has become extremely successful globally.
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2 comments:
Question 1- Kyle Toelken
Starbucks strategy of expanding over seas created huge value for the companies shareholders, because of the massive cost reduction it takes Starbucks to employee works and make a huge turn around. Starbucks used a transnational strategy, which is a firm trying to simultaneously achieve low costs, differentiate the product offering across geographic markets, and foster a flow of skills between different workers. This strategy helped Starbucks become nationally known, where they have billions of dollars in assets. In doing this, the shareholders stay with the company, rising as the company rises.
Question 2 - Ronnie Vajdak
Starbucks has chosen a transnational strategy in its expansion. This strategy combines cost cutting elements with answers to the demands of local markets. While allowing foreign partners to control some of the options in the overseas branches (product selection and decor, for example), Starbucks saves money because American employees do not have to be shipped overseas. And permission for foreign branches to localize their products increases sales, and provides transnational opportunities to introduce some of those foreign products here in the US. I think this is a good strategy for the company to follow, because it allows for profit on a local scale and also for diversity in products, which American customers like.
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