There are both controllable and uncontrollable factors that every company faces when they enter to the global market. For example the factors that Starbucks has encountered in their domestic market are similar to what they have to come across in the global market. These controllable factors include the product, the price of the product, the promotion of the product. These are common elements in any global market.
When entering the global market, there are few important factors that Starbucks has to concentrate in order to increase their sales. Those factors include quality of the product, taste and preferences of the consumers. Therefore Starbucks has customized their products according to the preferences of the customers all over the world. Their main overseas business stations are Japan, Italy, Germany and Spain. Starbucks has been able to keep their brand name in top ranks in terms of customer satisfaction by providing a standard service while fulfilling customer preferences
When it comes to price, Starbucks can decide whether to increase or decrease the price of their products in other countries depending on the external circumstances. For example since coffee is cheaper in Germany Starbucks can either sell their products for a lower price in Germany or they can maintain higher price to build their brand image.
As it is …show more content…
Thus they spend a considerable amount of money to maintain their standardized image through high level promotional campaigns. But there are few factors that Starbucks find difficult to control in the global market. Those are political, economic, cultural and legal factors that every company has to face in the global business industry. Since these factors are subjected to change at any time its very difficult to control them in the long run. The above reasons make it hard for an emerging company to survive in the competitive global
When entering the global market, there are few important factors that Starbucks has to concentrate in order to increase their sales. Those factors include quality of the product, taste and preferences of the consumers. Therefore Starbucks has customized their products according to the preferences of the customers all over the world. Their main overseas business stations are Japan, Italy, Germany and Spain. Starbucks has been able to keep their brand name in top ranks in terms of customer satisfaction by providing a standard service while fulfilling customer preferences
When it comes to price, Starbucks can decide whether to increase or decrease the price of their products in other countries depending on the external circumstances. For example since coffee is cheaper in Germany Starbucks can either sell their products for a lower price in Germany or they can maintain higher price to build their brand image.
As it is …show more content…
Thus they spend a considerable amount of money to maintain their standardized image through high level promotional campaigns. But there are few factors that Starbucks find difficult to control in the global market. Those are political, economic, cultural and legal factors that every company has to face in the global business industry. Since these factors are subjected to change at any time its very difficult to control them in the long run. The above reasons make it hard for an emerging company to survive in the competitive global