lOMoARcPSD|14996425
Case 13
MKT3500
Question 1
Starbucks prefers a combination approach to foreign market entry: the use of
joint ventures and licensing. Do you agree with this approach? Why or why not?
Yes I agree with the approach of a combination of joint venture and licensing to
enter foreign markets. The reasons are as follows:
- Joint venture ensures equal equity partnership and ownership
of both Starbucks and its partners. They both have equal
controlling rights.
- Licensing added on to ensure compliance with star buck
norms of the store set up as per their standards, staff training
and the dress code is maintained. The licensee is allowed to
use the logo and name subject to conditions laid down by the
licensor without losing control on management rights laid
down by the joint venture agreement.
Question 2
Many would argue that Starbucks coffee is expensive, and yet customers get
“value” for their money. How do you think Starbucks has been able to transfer
this business model and value proposition to international markets?
Yes true Starbucks is expensive yet it gets “value” for money as they provide
following to the customer:
· The entire customer experience from entering to greeting to serving
and the goodbye on leaving makes customer feel ultra special
· It’s not just coffee place but a place to network, read the newspaper,
browse the web with free wi-fi served with coffee and a great meet up
place.
· Now the added status of hanging out at Starbucks on weekends or
airport lounges is an added plus because of the high-end image of the
place and brand.
They have been able to transfer this business model and value proposition to
Case 13
MKT3500
Question 1
Starbucks prefers a combination approach to foreign market entry: the use of
joint ventures and licensing. Do you agree with this approach? Why or why not?
Yes I agree with the approach of a combination of joint venture and licensing to
enter foreign markets. The reasons are as follows:
- Joint venture ensures equal equity partnership and ownership
of both Starbucks and its partners. They both have equal
controlling rights.
- Licensing added on to ensure compliance with star buck
norms of the store set up as per their standards, staff training
and the dress code is maintained. The licensee is allowed to
use the logo and name subject to conditions laid down by the
licensor without losing control on management rights laid
down by the joint venture agreement.
Question 2
Many would argue that Starbucks coffee is expensive, and yet customers get
“value” for their money. How do you think Starbucks has been able to transfer
this business model and value proposition to international markets?
Yes true Starbucks is expensive yet it gets “value” for money as they provide
following to the customer:
· The entire customer experience from entering to greeting to serving
and the goodbye on leaving makes customer feel ultra special
· It’s not just coffee place but a place to network, read the newspaper,
browse the web with free wi-fi served with coffee and a great meet up
place.
· Now the added status of hanging out at Starbucks on weekends or
airport lounges is an added plus because of the high-end image of the
place and brand.
They have been able to transfer this business model and value proposition to
