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Starbucks a Multidomestic Company (final)
Transcript of Starbucks a Multidomestic Company (final)
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Entered the UK in 1998 and acquired Seattle Coffee Co.
Faced an initial challenge in the UK Market due to recession
Added breakfast items
More recently increased the strength of espresso shots
Opened first store in Saudi Arabia in 1999
Had to change their logo to suit local culture
Eventually used M.H. Alshaya again to enter Russia
Some menu items not sold in US- Lime Mint Coconut Frappuccino® Blended Juice Drink
Starbucks partnered with Maxim in 2000
Maxim is the #1 catering company in Hong Kong
Starbucks immediately flourishes with little competition
Currently under fire for its allegations of higher prices
In 2013 Maxim again partners with Starbucks to enter Vietnam
Two stores opened within 7 months.
Trung Nguyen plans to establish a presence in Seattle in retaliation.
In 2004, Starbucks partnered with Crossmark Canada, Inc
Targeted local groceries stores as a gourmet brand
Crossmark recently appointed Peter Ma to VP
Starbucks Canada is expected to open 150 new location in 2013, thanks to shops in new Target stores.
Starbucks dominates North America market
Nearest competitor is Coffee Bean & Tea Leaf
Starbucks has added an average of two stores per day since 1987
Offers health insurance to all its employees including part-time
Alsea began acquiring Starbucks in 2002
Used locally grown beans to gain support
Alsea plans to open 50 stores per year for next 5 years
Starbucks entered Colombia in 2013
Government and drug wars pose a challenge
Will not undercut local competition price
Will open 50 stores across Bogota over the next 5 years.
Starbucks has been exporting coffee beans from Colombia for past 40 years.
2013 Starbucks partnered with Tata Coffee Limited to take on the dominate, Cafe Coffee Day
Uses newly built 8,258 sq/ft roasting facility
Starbucks recently celebrated its first year in India, opening 25 locations during this time