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Diesel Online, Creative Essay Example

Pages: 1

Words: 291

Creative Essay

The factors for Starbucks’ success are multiple, but ultimately it is the result of a cohesive strategy that emphasizes various points simultaneously. Starbucks’ decided to pursue a policy of aggressive expansion, essentially saturating the market with their product. Starbucks accordingly became the “face” of such coffee products. However, this policy was also accompanied by careful selection of store locations: they wanted to make sure that their locations would have a market. Lastly, Starbucks’ decision to make their stock public gave them the capital to pursue these ambitious goals.

Starbucks’ also considered national cultures when expanding internationally. Namely, they employed local professionals who were familiar with the local coffee consumption culture, as well as how to get quality products. Therefore, they did not try to arrogantly overtake foreign markets, but understood difference and built this into their business plan.

Starbucks’ posted net revenue for 2012 according to their Annual Report was $13,229.50 (in millions / American dollars)

According to the Annual Report, the total number of stores operated by Starbucks world wide in 2012 was 18,066.

The total number of licensed stores by Starbucks world wide is 8661. There are many reasons why to have so many licensed stores. The Starbucks Annual Report states that one reason is financial: Starbucks gets a portion of the revenues from these stores, but their overall costs are less, since the licensee is primarily paying these costs. This means that they are basically renting out the Starbucks’ brand for profit; there is very little risk in doing so as the brand remains popular and license requests are steady. In another sense, licensed stores arguably gives a more local feel to Starbucks’ stores, since the licensee is most likely familiar with the area where he or she opens the Starbucks store.

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