Starbuck's thrive and success on local scene has been significantly been successful despite a tough competition from Dunkin-donuts low pricing strategy to outcompete the giant Coffee retailers in North America. The slow economic recovery, price consciousness by consumers and unemployment has forced many consumers to shop elsewhere for cheaper coffee or find another substitute. Despite tough economic situations, the Star bucks name brand has continued to maintain a strong loyal following and as a result, its stock value has continued to stabilize as other organizations are struggling to maintain a strong stock value and a comparative advantage within their respective industries. while star bucks have been a success story locally, its aim to take a culture and coffee into the international market has been a disappointment. They have encountered strong resistance from local coffee shops from a competitive standpoint and unethical dilemma from farmers that barely benefited from the success of Starbuck's' penetration of the international scene. the key ethical issue at hand is that Starbucks was buying coffee from local farmers at lower prices and in turn making big profits at the expense of the farmers. This raises a key problem to the fall and success of the Starbuck on the international scene despite their efforts to rectify their mistakes of enforcing their culture and corporate strategy of maximizing profitability without bearing the consequences of going global faster.
QUESTIONS
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global marketing.
2. What are the majors of risk facing the company and discuss potential solutions?
3. Critique Starbucks overall corporate branding strategy.
4. How might Starbuck's improve profitability in the international market?