Marketing in a Global Economy
Marketing in a Global Economy
As the largest coffee based company in the world, Starbucks Corporation has relations with more than sixty one countries globally. Largely based in Seattle Washington, Starbucks has coffeehouse chains in Canada, the United States, the United Kingdom, China, Japan, Mexico, South Korea, Thailand, Taiwan and the Philippines. Each location offers an amalgamation of snacks, pastries, whole bean coffee, along with cold and hot beverages. Apparently, most of the stores also offer cold and hot sandwiches, tumblers, mugs and packaged items (Faris, 2012). In addition, the corporation has evening locations offering a number of varieties in wines and beers. On the other hand, the entertainment division markets films, music and books altogether. This approach leaves the company with a specified and ...view middle of the document...
According to the Bloomberg magazine, Italy is yet to experience the business perspective that is associated with Schultz’s shops. Italians have a long history with coffee, with fragmented and crowded market a part of this perspective altogether. This phenomenon brings in reputational challenges that might pose a risk to the nature of the coffee company.
There is a challenge in venturing into the Italian markets largely due to the fact that its market entrance barriers have remained high consequently resulting in corporations moving into other markets. Schultz’s coverage in the Italian markets appears very complicated and poses as the mountain he has to climb. From a business perspective, Italy does not pose as a lucrative venture although the Italians are believed to love coffee. The nation does not represent the culture and height of coffee. Starbucks processes and procedures in their coffee shops are different from those in Italy. There is a danger in establishing differently served coffee from that which natives are used to. For instance, the amount of Arabica beans included in Starbuck’s coffee could be too much for Italian coffee (Faris, 2012). This is because they term Arabica beans as ‘different’ and not superior, and could be avoided in coffee; a key part in Starbucks’ marketing campaign. In addition, Italy is the birthplace of cappuccino, which is almost similar to coffee, and has gone deep into the Italian market.
Due to the fact that there are similar products and a less aggressive ‘appetite’ for coffee, it is extremely difficult to establish the case for Starbucks in Italy. Starbuck faces a challenge of whether it is possible to succeed in a business where the consumers are completely attached to a different consumption culture. There is a risk in competing for consumers especially for the international brand and the local tradition in Italy. Therefore, Starbucks should not enter the Italian market at all.
Faris, S. (2012). Grounds Zero: A Starbucks-Free Italy. Bloomberg , pp. 1-3.
Segreta, M. (2013). Italy poses a reputational risk for Starbucks. Boyden , pp. 6-7.