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Market Entry Strategies Case Study

Case Title:

Starbucks in Japan: The Growth Strategies

Publication Year : 2005

Authors: Vasanthi Vara, Souvik Dhar

Industry: Retailing


Case Code: MES0022

Teaching Note: Available

Structured Assignment: Available

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Starbucks capitalised on the coffee demand in the US and established itself as a quality coffee chain. It aimed to take culture and coffee to international locations and opened its first outlet outside the US in Japan. The Japanese, known to adapt themselves to the Western culture, embraced the Starbucks concept and its coffee, making Starbucks a success in Japan. But the success did not last long and Starbucks incurred losses in Japan in 2003. But strict cost control measures and a better food menu resulted in profits in 2004. The company then entered the ready-to-drink coffee market and analysts were sceptical about its success in an already saturated market. The changing preferences and tastes of the Japanese were also a cause for concern for the company.

Pedagogical Objectives:

  • To highlight the growth strategy of Starbucks in Japan
  • To discuss whether Starbucks would be able to sustain its growth in the country.

Keywords : Starbucks Corporation; Growth strategies; Global expansion strategies; Japanese coffee culture; Kissatens; Global brand; First-mover advantage; Growth Strategies Case Study; Starbucks culture; Brand recognition; Local competition

Contents : 
Starbucks: Company Profile
Japan’s Coffee Culture
Starbucks in Japan: Growth Strategies
The Future: Prospects and Problems
Region-Wise Global Consumption of Iced/RTD Tea and Coffee
Expected Sales of Coffee v/s Tea in Japan
Starbucks Culture

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