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Starbucks Going Global Fast

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Case 1-1:
Starbucks Going Global Fast
Andrew Perry
MRKT 4343 Global Marketing
Professor Douglas Gatton
10 February, 2015

1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
Nearly every element that Starbucks has encountered can be controlled in some degree or another. One of the somewhat controllable elements that Starbucks has faced is a resistance in breaking into the already occupied markets. In many places across Europe, well respected coffee chains have already been established and have a decently loyal consumer base. Given the incredible quality of Starbucks’ coffee, a simple price-war could generate new customers quickly. From then, a continued positive reputation will be established for the company and Starbucks’ market share will grow. Once a decently sized market share has been established, Starbucks can then begin to gradually increase their prices, while offering incentives along the way. Before too long, Starbucks have the potential to become a dominate force in Europe which still maintaining high margins through premium pricing. Another obstacle facing them is the skepticism that they use materials that are harmful to the environment, such as Styrofoam. This is of course untrue, but all that matters is what the customers believe. They can overcome this through a marketing campaign designed to clear the air. Also, Starbucks faces sensitive political issues in the Middle East that they will need to be wary of. This issue can be resolved by stopping it before it ever becomes an issue. As they have already done, Starbucks needs to continue expressing their desire for “peace for both sides”. The only true uncontrollable factors usually originate from governments. The first example of this includes any possible tariffs that may reduce profits for Starbucks globally. Even without

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