Starbucks Corporation was founded in 1985 by Howard Schultz. The origins of Starbucks reach back to 1971, when the Starbucks Coffee Company was founded by three students in Seattle. These students, Gerald Baldwin, Gordon Bowker and Zev Siegl love coffee and tea. And this was the only reason why the set up the Starbucks Coffee Company. They just want to bring the best coffee in the world to Seattle. This time Starbucks only sold the coffee beans and the according coffee machines and mills. In the first ten years four more stores were set up. Howard Schultz, who was working in a Swedish house ware company this time, recognized the development and increasing demand of coffee mills of Starbucks. Infected by his interest in this company he started his research in Starbucks. He often went to Seattle and always met the founders of Starbucks, trying to convince them to employ him. Howard Schultz, who had no idea about coffee, but a lot of knowledge about selling, stayed very obstinate and so finally in middle of 1982 he became a manager at Starbucks. Since he joined the company he started to learn as much about coffee as he could. Inspired from the Italian coffee culture, which he got know during a visit in Milan, he wanted to introduce a coffee bar culture in the United States. After disagreements with his partners he decided to set up his own business. So, in 1985 he opened his first coffee bar in Seattle – Il Giornale. To get the capital he needed he spoke to 242 investors. 217 declined, but the others gave him the money to win the competition together with Starbucks.
In 1987 he could purchase the Starbucks Coffee Company and most important the brand name that he used for all his stores, as Starbucks was a more familiar brand to the Americans. When he acquired Starbucks for US-$ 3.8 million the company had already 11 stores and about 100 employees. He kept almost all the employees because he also wanted to make Starbucks become a social company. So, he also paid more than the minimum wage, cares for good health insurances and even offered stock options to part-time employees. So it was no surprise that Starbucks had the lowest fluctuation rate among the restaurant and fast food business sector. But today also some ex-employees mention that the good and social image of Starbucks is a fallacy, as there are long working hours and not many chances to be promoted.
Table of Contents
- Introduction
- Starbucks' International strategies
- Competitive Forces
- Entry Strategies
- Success factors
- Problems of globalisation
- Starbucks in Germany
- German Coffee Market
- Coffee Shop trend
- Coffee - unquestioned front runner in the beverage consumption of the Germans
- Starbucks' Joint Venture with KarstadtQuelle AG
- Conclusion
- Appendix
- Table of References
Objectives and Key Themes
This text aims to analyze Starbucks' international business strategies, focusing specifically on its expansion into Germany. The analysis utilizes Porter's Five Forces model to examine competitive dynamics and the factors contributing to Starbucks' success (or challenges) in different markets. The study also explores the company's history, its corporate social responsibility initiatives, and its approach to entering new international markets through joint ventures and other strategic partnerships.
- Starbucks' international expansion strategy
- Competitive analysis using Porter's Five Forces model
- The role of joint ventures in international market entry
- Analysis of the German coffee market
- Starbucks' corporate social responsibility initiatives
Chapter Summaries
Introduction: This chapter introduces Starbucks Corporation, detailing its founding in 1985 by Howard Schultz and its origins tracing back to 1971. It outlines Schultz's pivotal role in transforming the company from a coffee bean supplier to a global coffeehouse chain, emphasizing his entrepreneurial drive, innovative business strategies, and focus on creating a unique customer experience. The chapter also touches upon early challenges, including disagreements with partners and securing funding, and highlights the early emphasis on fostering a positive work environment and company culture to minimize employee turnover.
Starbucks' International strategies: This chapter delves into the strategic considerations behind Starbucks' international expansion. It uses Porter's Five Forces model to analyze the competitive landscape, examining factors such as substitute products, supplier power, buyer power, competitive rivalry, and barriers to entry. The chapter highlights how Starbucks differentiated itself by offering a complete experience beyond just coffee, mitigating the threat of substitutes and justifying a premium price point. The complexities of this strategy in established coffee cultures are also considered.
Starbucks in Germany: This chapter focuses specifically on Starbucks' entry into the German market. It provides an overview of the German coffee market, including existing trends and consumer preferences. A key element is the discussion of Starbucks' joint venture with KarstadtQuelle AG, a major German retail company. This section likely details the strategic rationale behind this partnership and its contribution to Starbucks' success (or challenges) in the German market. The chapter likely analyzes the effectiveness of adapting their strategies to a market with a robust and established coffee culture.
Keywords
Starbucks, international business strategy, Porter's Five Forces, competitive advantage, market entry strategies, joint ventures, Germany, coffee market, globalisation, corporate social responsibility, brand image, international expansion.
Starbucks' International Strategies: Germany Case Study - FAQ
What is the main focus of this text?
This text analyzes Starbucks' international business strategies, with a specific focus on its expansion into the German market. It examines the competitive landscape using Porter's Five Forces model, explores the role of joint ventures (specifically the partnership with KarstadtQuelle AG), and analyzes the German coffee market's impact on Starbucks' success.
What topics are covered in the Table of Contents?
The table of contents includes an introduction, a detailed look at Starbucks' international strategies (including competitive forces, entry strategies, success factors, and problems of globalization), a specific analysis of Starbucks in Germany (including the German coffee market and the joint venture with KarstadtQuelle AG), a conclusion, an appendix, and a table of references.
What are the key objectives and themes?
The key objectives are to analyze Starbucks' international expansion strategy, conduct a competitive analysis using Porter's Five Forces, examine the role of joint ventures in market entry, analyze the German coffee market, and explore Starbucks' corporate social responsibility initiatives.
What does the chapter on Starbucks' International Strategies cover?
This chapter delves into the strategic decisions behind Starbucks' global expansion. It utilizes Porter's Five Forces to assess the competitive environment, highlighting how Starbucks differentiated itself to justify its premium pricing and navigate challenges in established coffee cultures.
What is discussed in the chapter on Starbucks in Germany?
This chapter focuses on Starbucks' entry into the German market, providing an overview of the German coffee market's trends and consumer preferences. It particularly examines the joint venture with KarstadtQuelle AG, analyzing its strategic rationale and contribution to Starbucks' success (or challenges) in Germany. The adaptation of strategies to a market with a well-established coffee culture is also a key focus.
What is the significance of the joint venture with KarstadtQuelle AG?
The joint venture with KarstadtQuelle AG is a crucial element in understanding Starbucks' strategy for entering and succeeding in the German market. The text likely details the strategic reasons for this partnership and its impact on Starbucks' performance in Germany.
What analytical framework is used in this text?
Porter's Five Forces model is the primary analytical framework used to examine the competitive dynamics within the coffee market and assess the factors influencing Starbucks' success or challenges in different markets.
What keywords describe the content?
Keywords include Starbucks, international business strategy, Porter's Five Forces, competitive advantage, market entry strategies, joint ventures, Germany, coffee market, globalization, corporate social responsibility, brand image, and international expansion.
What is included in the introduction chapter?
The introduction provides background information on Starbucks Corporation, its founding, and the key role of Howard Schultz in transforming it into a global coffeehouse chain. It also touches upon early challenges and the company's emphasis on creating a positive work environment.
What is the overall purpose of this document?
The document aims to provide a comprehensive overview and academic analysis of Starbucks' internationalization strategy, using the German market as a specific case study. It uses structured information to support this analysis.
- Quote paper
- Peter Strehle (Author), Michael Cruickshank (Author), 2004, Starbucks. International Business Concept and Starbucks in Germany, Munich, GRIN Verlag, https://www.grin.com/document/32098
