Thursday, November 21, 2019

Mid term Assignment Example | Topics and Well Written Essays - 500 words

Mid term - Assignment Example The concept helps the countries reduce the time and money spent trading among the countries. Starbucks faced three major risks in the competitive market. The first was the saturated market condition in the USA. The company started with 17 coffee locations in Seattle and over 5000 outlets in more than 20 countries. Seattle has a population of over 9000 people, which the company considers as the upper limit of market saturation. The second risk is the loss of customers due to few product options. The risk of global expansion poses risks for Starbucks due to increased competition (Graham, Cateora and Gilly 300). Starbucks can reduce the employee destruction to improve the quality of service. Product repositioning will help Starbucks win back their lost customers. Since coffee is the primary product, Starbucks should focus on improving the quality of the product. Starbucks overall corporate strategy is facing challenges due to a mismatch between consumer expectation and company strategies. They believe that having more outlets increases the sales volume. Starbuck concentrates on increasing the number of outlets without analyzing consumer satisfaction levels. The company does not apply the use of price differentiation strategy making it difficult to attract the younger generation. Product and service reposition will aid Starbucks improve their profits in Japan. The Japanese people are less conscious with the price, and look for quality. Even though they hesitate to spend, they do so only for high quality products. The Japanese are cultural oriented hence the marketing strategies of Starbucks should relate to the cultural aspects to gain more audience (Graham, Cateora and Gilly

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