__星巴克案例分析.doc

project: starbucksgoing global fast星巴克案例分析营销1101班小组成员：马志萍 蒋雯 卢玉楠 李雪清 常利蓉联系方式：2014年10月22日1. identify the controllable and uncontrollable elements that starbucks has encountered in entering global markets.when the starbucks encountered in entering global markets ,the controllable elements included the product,the price,the firm characteristics and the promotion.while the main uncontrollable elements it faced included the political forces,the cultural forces,the competitive forces and the level of technology.the main controllable an uncontrollable elements are as follows:chart1 the main controllable elementscontrollable elementsexampleproductschultz thought that offering 8 dollars sandwiches, desserts, and cds in his stores and selling packaged coffee in supermarkets wouldsignificantly boost sales in the late 1990s.pricein italian coffee is cheaper than u.s. java and, say italian purists, much better. americans pay about $1.50 for an espresso.firm characteristicsin the aspect of cash, starbucks is nearly free of debt, it fuels expansion with internal cash flow. in the aspect of place, the firms 12,000 locations in the united states are mostly in bigcities, affluent suburb and shopping motionstarbucks is so smart that it promotes itself by relying on mystique and word-of-mouth. therefore, it can save much money on advertising. as the case mentions, starbucks spends only 1 percent of revenues on advertising .source of data:the authors to sort outchart2 the main uncontrollable elementsuncontrollable elementsexamplepolitical forcesthearcaneregulationsandgenerouslaborbenefitsinfrance,starbucksshould followthemandmeetthelaborsneeds. onlybydoingthiscanstarbucksgainthepopularityandenhanceitssalesinfrance.cultural forcesfrench seem to be ready for sweeter taste. andinitaly,thecoffee bars provides coffee as well as food. it is a kind of food culture. in japan , starbucks has successfully developed a broader menu for its stores .but mcdonalds also is attacking the japanese market with the introduction of its mccafe coffee shops .uncontrollable elementsexamplethe level of technologystarbucks continues to try other fundamental store changes. it announced expansion of a high-speed wireless internet service to about 1,200 starbucks locations in north america and europe.source of data:the authors to sort out2. what the major sources of risk facing the company is and discusses potential solutions.chart3 the risk and solutionrisksolutionglobal expansionfully select of strategy and way of expansion;clear the development direction after the companys expansion.predictable challengesefforts to improve the brand value;create the unique consumption atmosphere.staffs qualityimprove the staffs allowance;be equipped with talent; restriction of contract.cultural challengescultural integration;cross-cultural training; build a shared vision.source of data:the authors to sort out2.1 global expansionglobal expansion poses huge risks for starbucks. for one thing, it makes less money on each overseas store because most of them are operated with local partners. while that makes it easier to start up on foreign turf, it reduces the companys share of the profits to only 20 percent to 50 percent.the solutions to this problem are: fully select of strategy and way of expansion; clear the development direction after the companys expansion.2.2 predictable challenges starbucks must cope with some predictable challenges of becoming a mature company in the united states. not only are the activists among them turned off by the power and image of the well-known brand, but many others say that starbucks latte-sipping sophisticates and piped-in kenny g music are a real turnoff. they dont feel wanted in a place that sells designer coffee at $3 a cup.the solutions to this problem are: efforts to improve the brand value; create the unique consumption atmosphere.2.3 staffs qualityas it expands, starbucks faces another big risk: that of becoming a far less special place for its employees. for a company modeled around enthusiastic service, that could have direct consequences for both image and sales. its perks are no longer enough to keep all the workers happy. starbucks pay doesnt come close to matching the workload it requires, complain some staff.the solutions to this problem are: improve the staffs allowance; be equipped with talent; restriction of contract.2.4 cultural challengesas starbucks spreads out, schultz will have to be increasingly sensitive to those cultural challenges. now, starbucks is waking up to the grande challenges faced by any corporation bent on becoming a global powerhouse. the solutions to this problem are: cultural integration; cross-cultural training; build a shared vision.3. critique starbucks overall corporate strategystarbucks overall business strategy is primarily to centralized expansion strategy.starbucks not only expanding in the local market, but also in cooperation with local manufacturers in overseas market to expand. chart3 the advantage and disadvantage of strategyadvantagedisadvantageeconomies of scalelower profit margindomination of marketcultural conflictthe decrease of the quality of products and servicesworsening competitive relationshipsource of data:the authors to sort out3.1 advantages3.1.1 economies of scale rapid expansion in a particular area makes starbucks coffee shop together, though sales will influence each other, but it will increase the overall revenue, expand market share. due to the large size of starbucks, the scale effect makes delivery and management costs lower.3.1.2 domination of marketby focusing on some stores, starbucks can speed up to control the local market. starbucks take full use of the strategy of predatory real estate, paying a rent above the whole market to get his opponent out of the coffee market. they would rather idle the shops than give competitors opportunity to enter the market.3.2 disadvantages3.2.1 lower profit marginas for the local expansion, most of the overseas stores must cooperate with local partners. so relative to domestic shop, the profit margin of each shop will be lower .even give up a 20% - 50% of the profits. however, every new branch will affect the existing store sales, so as to lower the overall profit margins. thus, while chain starbucks in global has more than one player, but its share of profit is only a small part at the top of the pyramid. 3.2.2 cultural conflictthe culture of each country is different; starbucks inevitably encountered cultural conflict in the process of overseas expansion. for example, although french prefer sweet coffee taste of starbucks, but french regulation is strict and the welfare of workers is high, in this way, starbucks profit will be shocked to a large degree. in europes coffee culture, firstly, italian coffee shops profit not only deprive from selling coffee, but also selling food, but starbucks do bad in this aspect. secondly, italian coffee is much cheaper than american coffee and those who like to drink black coffee prefer italian coffee. facing the competitive disadvantage produced by cultural conflict, its a huge challenge for starbucks to expand overseas. 3.2.3 the decrease of the quality of products and services firstly, once employees advantage is one of the advantages which starbucks proud of, but with the increase of the starbucks stores across the country, the branch managers and employees morale problem is more and more serious. for a company based on rich enthusiasm, both for its image or sales, it can have bad effects. employees of dissatisfaction can affect quality of service, and far from the image that starbucks employees produce cappuccino happily, which you want to delivered to customers. secondly, expansion means companies cash flow is insufficient, which makes the enterprise product quality gradually decline, decline in quality is reflected in the use of raw materials and products packing and so on various aspects. 3.2.4 worsening competitive relationship the strategy of predatory property starbucks adopted makes neighborhood activists and local enterprises more and more disgust. whats more, customer feel annoyed because their choose leeway decrease.4. starbucks strategy to improve profitability in japan4.1 expand the overall market starbucks can make more convenience for consumers to get products by increasing product sales channels, thereby increasing consumers use to expand the market as a whole. such as through grocery stores or other retail outlets to sell canned coffee .because starbucks coffee with other ready-to-drink beverages in japans market share is still small. 4.