Globalization of Starbucks Assignment

Globalization of Starbucks Assignment Words: 1478

Struck is one of the largest coffeehouse companies in the wild world, which is started by Jerry Baldwin, Cave Siegel in Cattle’s Pike Place Market by selling premium- roasted coffee. Then Gordon Booker started the company after gaining motivations Pet’s Coffee. Today, Struck is the premier roaster and retailer of specialty coffee around the world which operating in more than 60 countries with about 15000 total stores until now. Regarding of the study results online, lots of consumers think about Struck is the third place to spend time beside home and ark place.

Within Just one little store in 1971 in Seattle, Struck flourished rapidly as increasing 3 new stores being opened daily in the world. At the beginning, Struck Just sell packaged, premium specialty coffees and freshly brewed espresso-style coffee beverages. Along with the development, Struck also sell a variety of pastries, teas, coffee beards, ground coffees and other coffee accessories products such as tumblers and Struck coffee cups. Since Starboard’s establishment, there is a sharp growth of its company’s performance. With the unique and high-quality coffee, Struck estimated at 32. Shares in the market up to 2008 according to the Struck annual report. It meaner, every one hundred cups of coffees served per day, one of the coffee brands is Struck. Before speaking of the market position of Struck, let’s focus on the target market firstly. Starboard’s target market is diversified which is based on the variety of related products that Struck offers. Generally, the target markets can be segmented by the different kinds of Struck products, target consumers ages, variety areas, students or working people and so on.

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Therefore, after determining the target markets, Struck Company need to decide the market position it want s to occupy. As we know, market positioning is an effort to effect consumer’s perception of a product or brand, which is even relative to the competing brands. And the objective of marketing position is to occupy a unique position in customer’s mind. Struck tries to position its products to be differ from the competitors’ products or brands, gives the greatest strategies to make Starboard’s brand and product remarkable in consumers’ minds.

Therefore, Struck positions itself as the third place between home a work for people to meet adhering relaxed and chew the rag with friends or colleagues. It targets at people who have middle or high incomes and desire to purchase premium coffees, Struck provides the best place for those people to interact with each other. Consequently, Struck pays attention to consummate its store’s decorative style, from the location selected and store layout to the in-store furniture, even about the in-store music style.

Moreover, Struck attached importance to customer brand experience, which includes the customer services, distinct store looking and special drinks names. All of those actions make Struck distinguish from other coffee stores and deeply into customers’ minds. In the early mid-asses, based on the US existing stores continued grow rapidly; Struck investors were seeking an opportunity to expand it internationally. However, competition in the market is inevitably along with the globalization.

Below is the Struck domestic value chain versus the globalization new value chain: [pick] [pick] As a result, more competitions come with it; every business has to face the competitions with other business companies which produce same or similar reduces or services. Thus, speaking of the competitions in globalization, Starboard’s competitive advantage is one of the vital sections to win among the competitions. Usually, competitive advantage is defined as an advantage that a firm could provide one product with low price to customers but the same value with its competitors.

Or the firm could provide greater value through the differentiation with high price. Competitive advantages could help the business organization matches with its core competence to seek the opportunities then ensure the business is in the ascendant in globally competitions. The following graph shows the competitive advantages of Struck among the international competition. [pick] The most obvious example is McDonald’s. As the largest fast food restaurant, McDonald’s has over 31,000 stores all over the wild world. It has been served breakfast for many years, but few years ago, McDonald’s started to market in MacAfee.

And also introduce cold drink both of non-coffee and coffee flavors, such as frappes and smoothes which is in order to compete with Starboard’s Production. As everyone knows, every business company must facing challenges as the development of their businesses. Even the successful business as Struck, which with good reputation, lots of awards and big benefits. To Struck, the most visibly challenge is dealing with the US economic downturn from 2008. Since the America financial crisis, Struck announced that they would close 600 stores in US in July 2008.

Also, in some other countries, Starboard’s American-coffee-style may not be appropriated for each area. For instance, there was a Struck coffee store in Adelaide few years ago, but it closed because of local coffee stores competitions and the American-style- coffee sales didn’t work well over here. However, even though Struck has daily competitions and challenges like other business organizations, it still deals with those situations patiently and effectively. In order to accommodate the downturn financial market, Struck has made adjustments to maintain its business keep running smoothly.

Although Struck closed 600 stores in US, it still up front of the public society, and update its stores operations information biblically. Facing the competitions, Struck focuses on its core competence (Unwavering focus on quality, outstanding customer service, continuous product advancement, and care for TTS employees, and its drive to be “everywhere. ” ) and meet the challenges. In other words, it meaner Struck need to keep producing high quality products and services, improve the quality of workforce.

As is well-known, Struck have the sole ownership of the Marino Supreme beards, which is regarded to one of the highest quality coffee beards around the world, which meaner Struck coffee beards suppliers could guarantee the high quality of coffee. And the reputation of high quality products and services are one of the Struck intangible resources as the best known of coffee house chains. Beyond that, Struck corporate culture has been leading itself try to do the best for satisfying customers and realize self value. No compromise on quality’, “No Franchising”, “No selling artificially flavored co beards” are there main purposes in Struck. And customer is always the most importance, try best to modify products as their preferences and Just satisfy customer at all costs. Hence, making new future plans along with those competitions and challenges. Aim at more variety products for variety consumers and regions. Also, Struck need to keep improving competitiveness in the global fierce intention to satisfy customers and maximum its benefits.

It should introduce more variety products to compete with its competitors. Furthermore, as the development of Struck globalization, this industry will suffer influences from different aspects. Struck opens new stores in other country or region must comply with the state or local government policies and rules. And different countries have differ consumption levels, the changes in disposable income could influence purchase levels. Also, the consumer preferences would like to prefer other beverages than coffee.

On the genealogical influences side, the using of technology could improve the operational efficiencies and makes more profits. So, all of those influences above need Struck to make decisions in order to satisfy more variety consumers by improving itself. Thus, all the research about Struck shows that it is a real great and successful example of globalization, from a little storefront to one of the largest companies in the world. However, the successful experience of Struck tells people the importance of the intellectual property rights in the globalization.

It exhibits intellectual property rights are the essentials of globalization and how does then become globalizes themselves. Just about the intellectual property rights helps Struck to succeed in internationalization. Furthermore, during the process of international expansion, Struck suffered the growing pains as bring American- style-coffee sales in other regions markets, because the American-style-coffee may be popular and be accepted by most Americans, but not for all other international consumers. In the first two years of globalization expansion, Struck lose 1. 2 million in revenue.

The CEO and investors of Struck have to hire highly educated talents to manage the company’s marketing and create more impeccable system to running chain franchises. Struck formulate the market plans and strategies for variety regions. Different markets have different coffee preferences. For instance, Asian markets prefer tea, so in Chinese markets, the sales of Struck tea might be better than other countries. Different markets have different coffee preferences. In conclusion, Struck has already been a successful widely known globalization coffeehouse and serve many customers around the world.

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Globalization of Starbucks Assignment. (2019, Aug 14). Retrieved September 19, 2021, from