Starbucks International

As the US economy gradually emerged from one of its worst recessions in history, Starbucks CEO Howard Shultz is questioning whether Starbucks should resume international growth overseas. In 2009 Starbucks had acquired global expansion of approximately 17,000 stores in 56 countries. Over the past two decades since it opened in Seattle in 1971, the company had achieved tremendous success. However, between 2007 and 2009 Starbucks began feeling the effects of economic deflation and strong competition. By the end of 2009 the company nearly closed around 800 US company operated stores. Now in effort to rebound from International hard times Starbucks needs to strategically resume in foreign markets in order to continue global success.

Recommending Starbucks an approach to re energize their international market have three main points. First, would be adapting better their product to the specific country market and culture. For example, adding different coffee flavors and ingredients to the menu, or adding different popular specialty food based from the country. I believe Starbucks grew too fast while not highly examining each location prior to opening. Also Starbucks was unable to provide or maintain its excellent service while expansion. Second, would be to focus greater in quality over growth. Return on assets has been for the most part a lot greater than growth during the years of 1993 through 2009. Signifying the company was being very profitable and efficient, however unable to stabilize internationally. Third, competition is increasingly larger Starbucks needs to continue innovating and differencing themselves from the rest. For example, by continuing utilizing social media, provide alternatives such as espresso coffee, and “going green” efforts.

Starbucks looking on forward surely learned from prior internationalization that will guide them into the future. For instance, when investing in international locations look for countries that have greater...