Growing Big While Staying Small: Starbucks Harvests International Growth Case Solution

In early 2009, Starbucks had about 17,000 stores worldwide, with about a third of people outside the United States. Despite a turnover of billions of dollars, annual growth of retail giant coffee halved its quarterly profit fell 97 percent same-store sales were negative, and languished for scholarship. Factors such as the global economic downturn and increased competition in the specialty coffee great players like McDonalds and Dunkin ‘Donuts market led to the decline, leading to the closure of hundreds of national retailers already, with many more planned. Founder Howard Schultz, who had just returned as CEO and his management team were convinced that growth opportunities Starbucks issued overseas, where the company had a strong presence in markets such as Japan and the UK and was opening hundreds of new stores in a variety of places. But recent international challenges, including the closing of most stores Australia due to weak sales, said Starbucks has more to learn about what your value proposition, a combination of high quality coffee, Top and a ‘coffee experience “in foreign land. The key question is not whether Starbucks could take its value proposition abroad, but how the three elements of the value proposition play contracts and recently completed .. new issues and international rights movements have increased each store U.S. closing Schultz and his team also faces a larger question, which applies to both U.S. and foreign stores: Could you “grow and stay small,” remains a major retailer that provides both high quality products and experience of everyone always intimate and friendly for the consumer? This case is the challenge in the context of the history of Starbucks, the proposed well established value, and growth and national and international vision.
Richard Honack,
Sachin Waikar
Source: Kellogg School of Management
22 pages.
Publication Date: December 1, 2009. Prod #: KEL447-PDF-ENG
Increasingly, while remaining Petit: Starbucks cuts Solution matter international growth

Growing Big While Staying Small: Starbucks Harvests International Growth Case Solution
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