Motivations
Starbucks pursued their entry into new global markets in areas with rising disposable income and curiosity in western brands. Some of these areas included China, India and Brazil. Further, as a global operator, Starbucks would reap the benefits of coffee beans in large quantities and easier supply chain operations.
Risks
One of the major risks associated with this entry into global markets was the misalignment of other culture’s taste preferences and habits. However, Starbucks understood this risk and successfully adapted to many of these new region’s needs. They did this by creating joint ventures with already established cafes across the world and used their input to create unique menu options for each global culture.
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