Presented by: Nomin Josie Elaine  Summary –Elaine  Question 1-Elaine  Competitor Analysis-Nomin  Question 2-Nomin  Question 3- Josie  Conclusion-Josie  A new concept in 1987 by Schultz.  The reasons of Starbucks’ success.  Mode of entry into international markets.  Problems in international operations.  Six ways to enter a foreign market: Exporting, Turnkey Projects, Licensing, Franchising, Joint Ventures, and Wholly Owned Subsidiaries.  Starbucks’s Three-Pronged Strategy  The Advantages of Starbucks’ Strategy  Three Main Competitors: ◦ Nestle.  McDonalds  Dunkin Donuts.  Nestle is famous for instant coffee.  McDonalds is the largest fast-food enterprise  Dunkin Donuts is an international donut and coffee retailer.  Starbucks faced with problems because of “No Smoking” rules  In Europe, Starbucks faced stiff competition with local retailers.  Starbucks offered a segregated section for ladies  A young generation would attracted to Starbucks.  In Asia, Starbucks offered curry puffs and  meat buns. Joint venture is a acceptable to Starbucks.  Political Risk -Howard Schultz, alleged closeness to the Jewish Community Arab countries’ boycott of American goods.  In Europe: ◦ -Uncertified Coffee Beans ◦ -Unqualified Trained Workforce ◦ -Unsuitable Real State (Locations) ◦ -Unreached Joint Ventures& Licensing Agreement  Stiff Competition from Local Players: ◦ In England, Overprice ◦ In Germany, Competitors “Stole” it’s Strategies ◦ In France, “Traditional Strong French Coffee, and “No Smoking” Principle  Japan, the largest overseas market  Young people lose their interests  Rapid Expansion: Store eats Store Short-Term -Cost Cutting Policy -Close Loss-Making Stores -Strengthen Local Specialty  Long-Term  Rethink its entry strategy  Focus on pricing  Caution volatile political risk and complex business environment