Starbucks Globalization

The Globalization of Starbucks

In 1971, Starbucks sold coffee to restaurants and bars from one small building in the historic Pike Place Market in Seattle, Washington. Today, however, Starbucks Coffee Company owns and operates nearly 20,000 locations globally. The Starbucks experience is very different from other global brands such as McDonald’s and Dunkin’ Donuts because the company focuses on selling “a third place experience” rather than just coffee. The Starbucks Coffee Company’s success throughout the world is a direct result of its business objectives, mission, and values. And while the company has encountered some obstacles, Starbucks’ customers still remain loyal and committed to the brand. The startup and continuous progression of the company have provided the Starbucks way of life we are all familiar with today.

In 1982, Howard Schultz joined the marketing and retail team at Starbucks. After a visit to Italy, Schultz convinced the team to adapt the Italian coffeehouse experience by setting up an espresso bar in downtown Seattle. It was the inviting and enchanting Italian coffeehouse atmosphere that sparked the idea in Schultz’s mind. From an international business perspective, Schultz demonstrates that all firms can benefit from different experiences, different cultures, and different ways of doing business, regardless of whether or not the firm wants to expand globally. In fact, international business is critical for long-term competitive survival. This is because there is a shift towards a more integrated and interdependent world economy and consumers’ tastes and preferences are converging on some global norm.

But Schultz’s primary objective was to grow Starbucks within the United States first. After convincing the founders of Starbucks to test the coffeehouse concept in downtown Seattle, where the first Starbucks Caffè Latte was served, Schultz founded Il Giornale in 1985, offering brewed coffee and espresso beverages made from...