International Marketing: A Case Study of Starbucks

RUNNING HEAD: STARBUCKS
INTERNATIONAL MARKETING

STARBUCKS
Contents
Introduction................................................................................................................................2
PESTLE Analysis.......................................................................................................................2
Contribution in world economy.................................................................................................3
Product life cycle theory............................................................................................................5
Entry mode.................................................................................................................................5
Benefits......................................................................................................................................6
Challenges..................................................................................................................................6
Use of theory and data to identify future research direction......................................................6
Global local branding.................................................................................................................7
Case of Pacific Asia...................................................................................................................7
Conclusion..................................................................................................................................8
Bibliography...............................................................................................................................9
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Introduction
The research report is prepared on the title ‘International marketing’.
The International Marketing is the application of marketing principles to satisfy the varied
needs and wants of different people residing across the national borders (Czinkota, 2013).
The task one of the report focuses on the variances based on business environment with
respect to Starbucks. It involves the use of PESTLE analysis for analysing the differences
between USA and New Zealand. It includes the role of international marketing and Starbucks
to the world economy. The task two emphasizes on the implementation of foreign direct
investment theory to Starbucks. It also comprise of challenges and benefits of mode of entry
chosen by Starbucks in the internal environment. The third task involves critical analysis of
international marketing trends based on given article. The last task of report is also based on a
given article. It comprises of evaluation of two emerging marketing opportunities in Asia
Pacific region befitting Starbucks.
The key purpose of the report is to focus on the important aspect of International
marketing. It provides an opportunity to upgrade the knowledge based on the given title.
Additionally, it offers a chance to enhance the learning by practically applying the
international marketing concept on a real life company.
Task 1
PESTLE Analysis
Political factor: It includes elements such as tax rate, labour laws, and government
policies. As per the research, the ‘Corporate Tax Rate’ in USA and New Zealand counts to
21% and 28% (Heritage , 2019). Thus, it suggests that USA offer less tax burden on
Starbucks. Hence, USA offers healthier political environment to Starbucks.
Economic factor: It focuses on monetary aspect of a country. It includes elements
such as GDP rate, Per capita income, Unemployment rate, and Inflation rate. In USA, the per
capita income is marked at $59,501. The unemployment and inflation rate is 4.4% and 2.1%.
Its GDP counts to $19.4 trillion with a growth rate of 2.3% (Heritage , 2019). In the case of
New Zealand, the per capita income is $38,943. Its unemployment rate is 4.9%. Additionally,
its GDP and inflation rate is marked at $188.6 billion and 1.9% (Heritage , 2019). Thus, it
states that both the countries offer fine economic environment to Starbucks.
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Social factor: It relies on aspect such as economic status, religious belief, and
customs. After considering economic status of the population of US and New Zealand, it is
analysed that American attains higher economic status than New Zealanders. As mentioned
above, the average income (Per capita income) earned by an American is higher than that
earned by a New Zealander.
Technological factor: As per the global technology index, USA attains the third rank
for attaining leading technological and innovation capabilities (Florida , 2019). It is
assessed that that New Zealand attains fine technology (Strang , 2017). Thus, it clearly
states that USA offers better technological environment to Starbucks.
Legal factor: It includes elements such as ‘health and safety, product safety and trade
freedom’. The government of USA safeguards the property rights but its protection is uneven.
USA counts to ’86.6’ whereas New Zealand’s government offers a trade freedom of ‘92.4’.
The latter lay prior attention in protecting the property rights of the business. Thus, it states
that New Zealand offers secure and fine legal environment in contrast to USA (Heritage ,
2019).
Environmental factor: It includes factors that affect the natural environment of a
country. Based on natural resources, USA offers more natural resources than New Zealand
(Nationmaster , 2019).
Contribution in world economy
It is examined that International marketing has highly contributed towards the
betterment of global economy.
1. More employment opportunities: The international marketing of products/services has
attracted the customers towards the foreign brand. It has developed subsequent
demand among them. In order to fulfil the customer demand, it develops the need of
availability of product in the international country market. It assists the international
brand to make an entry in the international business environment. To render the
product/service to the customers, it directly generates the availability of more jobs. To
fulfil these job positions, human resource of a country is hired. Thus, it ultimately
gave rise to more employment within the country. Hence, better employment status
contributes to country’s overall income. Thus, fine economy of a country contributes
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