Business- Level Strategy OF Starbucks PDF

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SURNAME 1 BUSINESS-LEVEL STRATEGY OF STARBUCKS Introduction Starbucks is the leading coffee company globally. Statistics have shown that this company will continue to dominate the coffee business in the future. The main business-level strategy for Starbucks that will enable it to offset changes in the food and beverage industry is its market entry strategy. The current foreign market entry strategy for Starbucks is appropriate for global markets. This strategy rides of Starbucks’ quality to align the company with any force in the industry. So far, Starbucks has successfully used three entry-level strategies to go global. These strategies include joint venture, wholly-owned subsidiaries, and licensing. According to Rivero (33), joint ventures have enabled Starbucks to overcome competition in the industry. For Starbucks, its joint ventures continue to increase foreign market entry. With market entry strategy, Starbucks will continue to be protected from high levels of competition, financial risks, and the advantage of knowing how the company’s product will do outside the US market (foreign market) based on local adaptation. Recommendations to improve this strategy include learning a local foreign language for easy understanding when communicating with customers. It is also imperative to understand foreign legal processes to avoid litigation issues. The only challenge when implementing this strategy is that it will require some extra funds.

Conclusion The ability of Starbucks to offer quality services by tailoring its products to the foreign local market needs is based on mastery of the market entry strategy. Without a market entry strategy, Starbucks would not have expanded rapidly this far. Therefore, this strategy continues to enable

SURNAME 2 Starbucks to offset forces in the industry both in the US and foreign markets. This power of this strategy in offsetting market forces in the industry cannot be disputed.

SURNAME 3 Works Cited Rivero Orlando. Starbucks Corporation: Leading Innovation in the 21st Century. 2015. Pp 3334. Print....