Starbucks coffee company is a leading roaster and retailer of specialty coffees. It has its base in Seattle and has many stores within the U.S. And internationally. The objective of starbucks is the establishment of Starbucks as the most recognized and respected brand of coffee in the world. For this goal to be achieved, starbucks continues to expand its retail operations by selectively pursuing other opportunities so that they can leverage and grow the company's brand by the introduction of a variety of new products (Balaban, s & Kieta, C., 2008).
Starbucks aims at entering more and more foreign countries. Among countries that Starbucks may consider venturing into is Italy. The initial idea to set up starbucks was from the Italian coffee tradition which was infused with the leisure approach found in Seattle. Despite the fact that the idea came from Italy, Italy has been considered a mountain that starbucks is yet to climb; even though Italy does not mean so much from a pure business perspective (Faris, S 2012). This paper examines the challenges that may be faced by Starbucks as reputational risks when the company attempts to enter the Italian market. It will also determine if any, the strategic advantages that starbucks has to enter the Italian market. Finally the paper will identify how competitor's marketing strategies inform and influence Starbucks' entry into this new market.
Starbucks has not entered into the Italian market yet, no starbucks outlet is anywhere in Italy especially at a very crucial time when Starbucks views its global expansion as a great key to its future growth. It is virtually impossible for one to walk into any European city and...
Even though the evolution of starbucks was due to the absorbance of the Italian coffee tradition, its structure is based around the American society. This is despite the fact that it was inspired on the Italian culture, hence, it is a probability that the sturbuck's model would not fly in Italy. Italy can be viewed as a very good market with a big potential of entry owing to the fact that Italians love coffee. However there is no form of presence whatsoever of starbuck in Italy even though it's founding was inspired right there in Italy.
The reputational risk posed in Italy is that the coffee market is famously crowded and fragmented. In Italy there are nearly 136,000 espresso bars, this number is roughly eight times the number of starbuck's stores all over the world ( Alini, 2012).Proof is found just across the piazza from Caffe Miani which has been known as the areas prime location of coffee bars. There is presence of MacDonald's with their fast growing McCafes which are becoming the fastest growing part of MacDonald's Italian business. This McCafes have an Italian style bar that serves expressos, cappuccionos and other pastries and pies.
Apart from Caffe Miani and McCafe is another establishment Arnold coffee. This is a major challenge that starbucks faces in trying to address the occupational risks that they face in Italy. It has opened six locations five in Milan and one in the major airport in Verona. They are even set to…
