Starbucks Confronting Possible Market Saturation Term Paper

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and, Starbucks is clinging to charging prices similar to those in the United States even though the incomes in countries such as China are dramatically lower. High prices in low-income countries will certainly prevent the type of mass consumption that Starbucks has created in the United States. On the service side, Starbucks may have to accommodate local traditions. For example, French cafes serve to facilitate social interaction just as much as offering coffee.

Brand recognition is a mixed blessing for Starbucks. While there are those who immediately recognize the name and may be drawn to a Starbucks store for this very reason, there are also those who associate it with anti-American feelings or dislike for large global corporations. Certainly, much of this problem is beyond Starbucks' control, but it can and should be aware of local cultural sensitivities and consider them into its marketing and operational efforts.

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Further, the company should plan for more operational volatility because many parts of the world are confronted with challenges that are greater than in the United States as the Israeli conflict with Palestinians in Tel Aviv that forced store closings has shown.

In summary, Starbucks has excellent opportunity for growth through international expansion. Yet, it appears the company has lessons to be learned in how to act like a global company that serves the needs of local markets. The company has a tremendous brand to leverage globally, but must adjust marketing and operations to individual country….....

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