Starbucks Failure in International Market Essay

Starbucks Failure in International Market - Essay Example The company that is the subject of this research is Starbucks, an international coffee and Spice Company that operates in over 60 countries in the global food and beverages industry. The company has invested in the food and drinks industry, which has become a target for many investors today. The company started from a humble beginning back in 1987 in the US under the leadership of Baldwin, Bowker, and Siegel, and now is one of the top international companies that supplies coffee products. As the pressure in the domestic market increased, the company management focused on international expansion to evade competition and market saturation. However, the company’s international expansion has faced a wide range of challenges due to the complexity of the international market. The weakness of the company hails from its inability to focus on the characteristics of the international market such as culture, competition, customer behavior patterns, which has led to losses. This article s eeks to detect the cause of Starbuck’s failure in the international market, Japan for this purpose, and develop strategies to overcome these challenges. Therefore, this piece of work will provide the company with a platform to succeed in the international market. In international strategy, organizations look for markets that are potential for their products and one that provides an opportunity for organizational development. One of the international markets that Starbucks has focused on is the Japanese market, one of the largest coffee consumer markets. A rapid development of the Japanese economy has been an attractive feature for many investors. As the economy stabilizes, the purchasing power of the consumers will increase and hence the demand will escalate. Therefore, the company’ choice for this market was a wise decision.