1. Partnership Strategies
Starbucks is a company with tradition and can be seen as a co-initiator of the global coffee
frenzy that started in the late 60s/early 70s (see appendix 6). Despite its history and
excellent capabilities in coffee-making, the company has to revert to external help to further
grow in the market. Alliances with key strategic partners have helped Starbucks to gain
access to new market segments, expand into new overseas markets, and obtain intellectual
property such as the Clover Brewing System. Acquisitions of direct (e.g. Seattle’s Best Coffee
Company) or indirect competitors (e.g. Tazo Tea or Teavana) helped Starbucks to level the
competitive landscape and diversify its product portfolio. Also in the future, Starbucks is
expected to utilize alliances and acquisitions to spur expansion in emerging markets.
2. Global Market Expansion Strategies
In 1994, two years after the IPO, Starbucks initiated its global expansion program by opening
its first store in Japan. With additional capital backing the expansion strategy, the company
set out to conquer the world in a breathtaking fashion. Within ten years it managed to more
than decuple the number of stores to 8,569 in 2004 (see appendix 7). Most of this growth
was fueled by overseas expansion, which in the beginning was limited to developed
continents such as Europe and Australia. Expansion into developing countries started in the
early 2000s despite slow growth rates resulting from low incomes of potential customer
groups. With the global financial crisis hitting the company hard and sales coming to a still
stand in 2008, Starbucks redirected its attention to emerging markets which came out of the
crisis relatively unscathed. Especially China and India, and to a lesser extend Brazil, have
1. Partnership StrategiesStarbucks is a company with tradition and can be seen as a co-initiator of the global coffeefrenzy that started in the late 60s/early 70s (see appendix 6). Despite its history andexcellent capabilities in coffee-making, the company has to revert to external help to furthergrow in the market. Alliances with key strategic partners have helped Starbucks to gainaccess to new market segments, expand into new overseas markets, and obtain intellectualproperty such as the Clover Brewing System. Acquisitions of direct (e.g. Seattle’s Best CoffeeCompany) or indirect competitors (e.g. Tazo Tea or Teavana) helped Starbucks to level thecompetitive landscape and diversify its product portfolio. Also in the future, Starbucks isexpected to utilize alliances and acquisitions to spur expansion in emerging markets.2. Global Market Expansion StrategiesIn 1994, two years after the IPO, Starbucks initiated its global expansion program by openingits first store in Japan. With additional capital backing the expansion strategy, the companyset out to conquer the world in a breathtaking fashion. Within ten years it managed to morethan decuple the number of stores to 8,569 in 2004 (see appendix 7). Most of this growthwas fueled by overseas expansion, which in the beginning was limited to developedcontinents such as Europe and Australia. Expansion into developing countries started in theearly 2000s despite slow growth rates resulting from low incomes of potential customergroups. With the global financial crisis hitting the company hard and sales coming to a stillstand in 2008, Starbucks redirected its attention to emerging markets which came out of thecrisis relatively unscathed. Especially China and India, and to a lesser extend Brazil, have
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