Entering Foreign Markets: Starbucks Growth Strategy

Reflective portfolio

Week 5: Entering Foreign Markets
Activity one
Starbucks corporation has a strong note on sales growth which is a great effort by the company
to consider and highlight the impact of sales on profit. The specialty coffee that the people like is
the development progress in Asian market (Team, 2016). One of the major driver of growth is
specialty coffee. With the digital initiative programs, the loyalty programs and the digital
payment strategy, Starbucks has achieved growth in the market.
The drivers of growth in the company are the increase in the number of stores, elevating the
coffee experience, crating customer occasions, driving at home coffee occasions, building
Teavana, extension of digital engagement and establishing partnerships. These are the key
drivers that enhance the growth of sales and directly ensures the profit of the company. Starbucks
has expanded the market and thereby it is important to have these strategies to be implement in
the company with utmost consideration of revenue of the company (Surroca, Tribo & Zahra
2013). Driving at home coffee share will entail consumer products that consist packaged coffee
and consider in K-Cups with significant growth in the coffee market. improved food offering
items and fresh food such as sandwiches and tea have encouraged the growth in the market while
creating new customer occasions. With the number of stores in the market, the growth strategy
by Starbucks will be most effective that expands the market and its importance in selling coffee.
Coffee giant concentrates on the outer edges and walk-thrus at several place in Seattle, Boston
and New York. There is an incremental growth that opens with cannibalization and considers the
confidence of sales growth in the US sector.
Activity two
Australia is the continent where Starbucks have not considered a good market. Despite deep love
for coffee, the country did not meet the success criteria as it should have been like in other
countries. There are several reasons that can be considered in the growth for Starbucks in
Australia (Turner, 2018).
In the year 2000, Starbucks has opened the stores and lately in 2008, there were 90 locations
where Starbucks was available. Due to over location of stores in Australia and the fastest going

pace, the popularity of Starbucks did not meet the expectations. The stores were launched too
rapidly which was the major reason of failure for Starbucks. People in the country could not
develop the appetite for coffee and Starbucks brand. A higher challenge in the American brand
was noticed effectively while there was challenge for American brand to enter in the Australian
market.
Another reason for failure of Starbucks revealed that the company did not meet the taste of
Australians as there were many coffee brands in the country. Starbucks served a sweeter version
of coffee which Australians did not prefer. The high charges of coffee were not preferred by
Australians while compared to the local cafes (Crane & Matten, 2010). There are still Starbucks
cafes in Australia within 39 locations in Gold Coast, Melbourne, Sydney and Brisbane. The
company is trying to cater the market with a different recipe for success.
Week 6: International Production, Outsourcing and logistics
Amazon Global logistics will offer services quickly and consider the feasibility options. It is
important to have a major concern on the technology concepts that are newly applied in the
business. Technology will definitely change the face to service delivery in the near future. The
buyer and seller will be now able to communicate easily with the technological impact and the
tools and techniques that enhance connection and communication between buyer and seller.
Technology will change the face of service delivery while providing door step services and
considering the importance of technology in the logistics. There is a drastic move that has been
noticed from personal service like door to door step service to a major automated form of
service. The face of service delivery is quick while compared to the old service methods and
support the customer journey. Customer satisfaction is higher while gaining importance to self
service and considering the impact of technology and its benefits. With the help of world wide
web, the boundaries are reflected and the technology importance is expanded in the service
delivery face which is an important part in automated service delivery. Although the work is
automated and considers a growth in service and transaction delivery, the impact of technology
would be incredible. The customer or the buyer just needs to add the product from the website
while the product will reach to the customer in just few days or hours. On the other hand, seller
would dispatch the goods and the transportation of the goods to the buyers will reach in no time.
This is where the technology is reaching with its grand ideas and creative concepts (Chen 2016).