Starbucks Japan Term Paper

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Cutting at Starbucks Japan

As early as 2002, Starbucks was responding to setbacks in its Japanese market by making efforts cut costs in its distribution and expansion business plans. One of its first measures was to look for new, local suppliers rather than relying upon its traditional American and international distributors. For instance, now, in-store mugs will come from a low-cost vendor in Japan rather than from the chain's Seattle home. "Starbucks is buying more of its paper goods from Southeast Asia instead of importing them from the U.S." Starbucks has also slowed its expansion in Japan adding just 80 stores in 2003, down from 115 from 2002.

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It closed ten stores in reliably "money losing" locations." (Dawson & Holmes, 2002)

Cutting back on the number of stores and curtailing costs, analysts say, may be the only way for Starbucks stop losing money and to "inject some steam back into the stock price. Starbucks shareholders may like their coffee with plenty of hot milk. But they like the bottom line black." (Dawson & Holmes, 2002) One reason for the….....

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