Starbucks and Growth Strategy

Starbucks -- Going Global Controllable and Uncontrollable in Global Markets There are many controllable aspects to Starbucks expansion strategy that it can design to be consistent with its strategy. For example, one of the aspects to Starbuck's growth that is fully under their control are the firms in which they choose as strategic business partners. This undoubtedly represents one of Starbucks critical success factors because in will help Starbucks to navigate the foreign markets in which it operates.

Another controllable aspect to Starbuck's supply chain is the opportunity to take advantage of global supply chain that it has created which has been estimated to provide top quality coffee to fifty million customers in fifty-one countries each and every week (Cooke, 2010). Some of the uncontrollable aspects to Starbuck's foreign operations will include things like cultural acceptance of the products that it offers local markets. Starbuck's cannot force consumers to have a preference for its coffees and related products.

Major Sources of Risk Starbucks faces many risks from a range of different sources. One of the most fundamental risks that it is facing is that, to continue to keep up its fast growth rate, the company will have to accept higher and higher levels of risk. For example, Starbucks original expansion in the U.S. followed a simple growth model that was easily reproduced.

However, since its domestic market has become saturated, the company must find new markets to operate in and many of these markets are substantially different than what Starbucks is used to. Therefore, Starbucks will have to find innovative solutions to customize its product mix to consumers in different markets. This will also require that the company uses strategic partners to help them in these markets and many of these firms could prove to be unreliable.

Overall Corporate Strategy Starbucks business level strategy has been to become and remain the world's premier coffee franchise that operates in a sustainable and principled manner and the company utilizes a comprehensive CSR platform that has is well-developed, but has been the source of criticism as well. The company has to create and maintain models that are easy to reproduce as well as flexible in the sense that they can adapt to fill the needs of the local markets in which it operates.

Much of the Starbucks strategy has been based on providing a quality product, with high customer service standards, and doing so in the prime real estate locations. Profitability in Japan For Starbucks to remain competitive in the Japanese market it will likely have to continue to develop products and services that are custom tailored to the local preferences that are inherent in the country. Although they have been successful so far in Japan, the case mentions that after the original opening, consumers lost interest in waves.

Therefore, Starbucks will have to continue to create products that can help to sustain interest in the coffee chain by offering new products that.