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1、Case 1: United Kingdom:Starbucks Coffee Company Ltd (UK) is a wholly-owned subsidiary of Starbucks Corporation of the US, which is the worlds largest retailer and roaster of specialist coffee. It is the market leader of branded coffee shops in the UK. (Caterersearch 2006)In May 1998, Starbucks enter
2、ed into the UK by the acquisition of sixty-five Seattle Coffee Company stores (Starbucks UK Home Page). It acquired the Seattle Coffee Company in exchange for about 1.8 million shares of common Starbucks stock, or about 50.8 million (Holmes 1998). Starbucks re-branded the purchased Seattle Coffee st
3、ores in the year following their purchase. The Starbucks Coffee Company also let Seattle Coffee managers Scott and Ally Svenson continue to manage the original UK operations (BBC news 1998).Seattle Coffee Company was founded in 1995. It included the Seattles Best Coffee and Torrefazione Italia Coffe
4、e brands (Coffeegeek 2003). The company was managed by two Americans, Scott and Ally Svenson. Seattle Coffee Company opened its first coffee bar in Covent Garden in 1996. As of 1998 it had sixty-five retail stores selling Americanstyle coffee which has a similar coffee culture as Starbucks. (Bitic 2
5、003)The United Kingdom was the first European country which Starbucks entered. The UK was to be a springboard from which to internationalize its business in Europe. Acquisition was therefore an efficient and fast way for Starbucks to enter into a new foreign market.Entering the UK was a milestone fo
6、r Starbucks international expansion. The internationalization plan in Starbucks long-term strategy consisted of opening 500 retail stores in Europe by the end of 2003. We are a way from taking the step from the U.K. to Europe, said Schultz, Chairman and Chief Executive Officer of Starbucks (Holmes 1
7、998). Whats more, Schultz said Europe was a major strategic opportunity to achieve our goal of creating and building an enduring global brand (Holmes 1998). The low competition intensity in earlier times drove Starbucks to expand in a strategically smart way, which was to create and build a sustaina
8、ble brand.In the UK Starbucks has grown step by step until becoming recognized as one of the “Top 10 UK Best Places to Work” in 2007 (Starbucks Homepage 2008). In 1999, Starbucks formed an alliance with Sainsburys. Starbucks also acquired London coffee shops from Madisons Coffee for 1.4 million in 2
9、001. In 2002, Starbucks formed a partnership with Borders bookshops and bought 13 coffee bars from Coffee Republic for 2 million. By early 2005, Starbucks had 30 concessions in supermarkets (Caterersearch 2006). In 2006, Starbucks UK was listed as one of “UK Top 50 Best Places to Work” (ranked 34th)
10、, awarded by the Great Places to Work Institute, in partnership with the Financial Times.Howard Behar, President of Starbucks Coffee International said We do not believe we are an American company, but an international brand. We hope to benefit from the pub culture in the UK to make Starbucks a natu
11、ral meeting place for people” (BBC News 1998). The above remark intends to reduce the importance of cultural distance between Starbucks coffee concept and United Kingdoms coffee concept. Between the two countries, there was a huge gap. British people had a different way of thinking than Americans. I
12、n the United Kingdom, there was also certain opposition to American products and concepts. Starbucks sought to reduce that distance by acquiring an existing British coffee chain, Seattle Coffee stores. In addition, Starbucks waited a year to re-brand the acquired Seattle Coffee stores with the Starb
13、ucks brand. In this way, Starbucks first made the British familiar with the Starbucks Coffee concept prior to rebranding.In 2007, Starbucks gained a major success in the UK with more than 500 stores having been opened. It remained the most recognized chain coffee store, with 27% of the respondents r
14、ating it their favorite (with Costa at 15 %) (Manson 2007). As of the present moment, Starbucks has more than 600 branches in the UK and Ireland.According to the retail analyst Euromonitor, the company has a 16.7 per cent market share, one per cent ahead of Costa Coffee (Hickman 2008). Costa Coffee
15、is founded in1971 by I talian brothers Vilas Costa with a wholesale operation supplying roasted coffee. Besides, it is based in United Kingdom.Case 2: New ZealandIn October 1998, Starbucks opened the first Starbucks retail store in New Zealand at Parnell Road, Auckland, which was operated and owned
16、by Restaurant Brands New Zealand Ltd. Restaurant Brands New Zealand Ltd, which was listed on the New Zealand Stock Exchange in June 1997, was an authorized licensee of Starbucks. Besides that, it was the franchisee for the KFC and Pizza Hut brands in New Zealand with an annual turnover of NZ$216.8 m
17、illion in 1997 (Business Wire 1998).Restaurant Brands New Zealand Ltd. shared with Starbucks the enthusiasm of bringing the Starbucks experience to New Zealand. Therefore, Restaurant Brands New Zealand Ltd. tried to operate Starbucks stores while keeping the essence of Starbucks coffee culture. In t
18、his manner, New Zealand Starbucks stores offered much the same as in other international Starbucks stores: coffee beverages, more than 30 varieties of arabic coffee beans, and local pastries and desserts.Restaurant Brands New Zealand Ltd. was delighted to help Starbucks enter New Zealand. Jim Collie
19、r, CEO of Restaurant Brands, commented: We are excited about bringing the unique specialty coffee experience of Starbucks to New Zealanders with our first Starbucks retail location. We hope to open up to 10 retail locations by the end of next year. Our commitment to people, quality coffee, exciting
20、products and excellent customer service will provide New Zealanders with a unique caf experience.” (Business Wire 1998)Starbucks regarded that its partnership with Restaurant Brands New Zealand Ltd. would provide it certain opportunities. This was especially because the competition intensity of the
21、1990s in the coffee retail industry was low, as a result of the early stage and un-mature coffee industry in New Zealand. Howard Behar, president of Starbucks Coffee International said Our successful partnership with Restaurant Brands provides us with a strategic opportunity to further enhance the r
22、ecognition of Starbucks as the worlds leading purveyor of specialty coffee in the Asia Pacific region (Business Wire 1998). Starbucks could also gain recognition of its good brand image by forming the licensing agreement with the well-known Restaurant Brands New Zealand Ltd. and entering into the ne
23、w and un-mature New Zealand coffee market.After years of having the licensing agreement with Restaurant Brands New Zealand Ltd., the information about Starbucks achievement can be found in 2006s annual report. “Total sales for the year grew 14.4% on a comparative weekly basis to a high of $27.9 mill
24、ion for the year. Same store sales for the year grew by 2.6% and store earnings improved 6.3%” (Salmon 2006). Starbucks was also very successful in the following year as well. Starbucks is now recognized in New Zealand as the foremost international coffee brand. “Starbucks Coffee New Zealand has als
25、o been recognized internationally for our local marketing activity” (Salmon 2006).In 2001, Starbucks and Restaurant Brands New Zealand Ltd. reached an agreement to open 50 outlets. In 2006, Starbucks obtained the above negotiated number of coffee stores. Starbucks in New Zealand has been a shining s
26、tar where there were no signs of its light dimming since its beginnings (Salmon 2006). At the present, Starbucks is continuously growing with steady store development. Starbucks plans to “double shoot” the original plan, with its current plan calling for 100 stores throughout New Zealand (Mark 2006)
27、. Starbucks New Zealand General Manager Steve Montgomery said “We could possibly double that and hold our own.”Case 3: SpainIn 2001, Starbucks signed a joint venture agreement with VIPS, a leading European food service and retail operator, as well as El Mol Vell, a retail operator of cafes and pastr
28、y shops in the Barcelona area. Tres Estrellas Unidas S.L. was a joint venture, formed by Starbucks and its two partners to manage the day-to-day Starbucks operations in Spain (Starbucks 2002). In the joint-venture structure, VIPS controlled 82% and Starbucks the other 18%. Nowadays, the joint ventur
29、e ownership by Starbucks is up to 50% (Press report 2007).Group VIPS was the Spanish market leader in full service dining. It had over 30 yearsexperience in retail business. The group operated several chains including VIPS own concepts (retail and restaurant), as well as Ginos, and Lae. It also inte
30、grated international brands such as T.G.I Fridays, Bice and Itsu. The Group operated many other established restaurants as Teatriz and El Bodegn. At the end of 2001, VIPS operated about 150 outlets (Starbucks 2002).Group VIPS created the joint venture with Starbucks because it regarded that becoming
31、 Starbucks partner would contribute to its growth strategy ( 2001). In 2000, Group VIPS had put an ambitious growth project into action to double its size in three years.Starbucks, in turn, chose Group VIPS because they needed a local partner to help the company to establish themselves in the commun
32、ity (elmundo.es 2002). lvaro Salfranca, Starbucks Chief Executive in Spain, mentioned in an interview “VIPS group plays a local role, because they understand the country and they operate in the stores; and Starbucks sets its heart, soul and philosophy behind Starbucks concept”.( 2007)Furthermore, bo
33、th companies shared vision and values facilitate the smooth flow of their venture. Howard Schultz, Starbucks Coffee Company chairman mentioned “VIPS Group is an ideal partner for Starbucks, as its strategic and business vision fit in with ours” ( 2007). After seven years, its joint venture continues
34、 working; they have even expanded their business in France and Portugal.El Moli Vell was a top retail operator of bread and pastry shops in the Barcelona area. It was founded in 1863. It had expertise and skills in handcrafted bakery products. In 2001, the company owned over 170 cafes. El Moli Vell
35、was the retail component of the Europastry group. The Europastry group owned one of the most important European businesses in pastries ( 2001).Similar to Group VIPS, El Mol Vell was delighted with being Starbucks partner. David Garca-Gasull, CEO of El Mol Vell, commented “We are excited about introd
36、ucing Starbucks into the Spanish market”. Starbucks sought to strive for the highest quality products and service in the market. ( 2001)In our interview, Luis mentioned more reasons why Starbucks decided to ally with VIPS group and El Mol Vell. First, its partners had experience and reputation in th
37、e hotel sector. Besides, both regarded customer service as an important part of their business. Another factor is that they integrated human resources in their businesses.Starbucks also took into account VIPS and El Mol Vells creative ability, local knowledge and capability to create branding. Final
38、ly, both partners had strong financial resources and quality in their products and services.Spain was the first Latin market which the company entered into and an important landmark for Starbucks. Moreover, Starbucks development in Spain was part of Starbucks ambitious European growth strategy. For
39、instance, in 2001, Starbucks not only entered in Spain, but also in Switzerland and Austria ( 2002). lvaro Salfranca in an interview characterized Spain as a mature and attractive market when they established coffee stores there ( 2007). When Starbucks went into Spain, coffee market had already deve
40、loped.There were a huge quantity of traditional coffee stores and big and known coffee chains such as Kroxan, Jamaica Coffee and Caf& T Gr Compa耥a del Trpico.In Europe, Starbucks was having a tremendous reception from customers and fast and successful growth. Howard Schultz stated, “Our entry into S
41、pain comes at very exciting time for Starbucks” and “While these are still early days in our growth, our success worldwide firmly validates our ongoing belief of the enormous potential for expansion in Europe”(Starbucks 2002). In reference with Spanish market, Peter Maslen, president, Starbucks Coff
42、ee International mentioned “We believe that Starbucks Experience will be in Spain as it is in the rest of our international market in Europe”. Besides, he added “ we are confident that Spanish coffee drinkers will enthusiaticalllyembrace Starbucks unique coffee house experience” (Ibid).In 2002, Star
43、bucks opened its first store in the center of Madrid. Tres Estrellas Unidas S.L. planned to open over 10 to 15 stores over the followings 18 to 24 months (Starbucks 2002). In addition, Alvaro Ca馿te, managing director of Tres Estrellas Unidas S.L., stated that the joint venture hoped to have 100 stor
44、es in five years (C 2002).At present the company has more than seventy stores distributed amongst large Spanish cities: Madrid, Barcelona, Valencia and Sevilla (Press Report, Spain 2007). All Starbucks stores are company-owned by the venture, ruling out the use of franchising owing to a desire to gu
45、arantee control over the purchase, treatment and distribution of coffee (C 2002).The reception of Starbucks in Spain was better than had been hoped. lvaro Salafranca admitted to feeling surprised about the positive reception of Starbucks brand. He commented: “We did not know if we get people to fall
46、 in love faster than we thought, or if we have been received better we thought”. ( 2007)When Starbucks was established in Spain, the coffee company already had a strong brand. As a consequence, Starbucks could play a fundamental role in the negotiation between its partners. For instance, Starbucks d
47、id not use any co-branding strategy with the VIPS Group. Its brand concept and clear position as “purveyor of experiences”were enough to consolidate its brand locally in a short time (Galli & Carbone 2007).In spite of having a good reception in Spain, Starbucks coffee culture was different from Span
48、ish coffee culture. Luis in our interview mentioned: “Spain consumes a lot of coffee, but it does not have coffee culture”. He regarded that Spanish people do not have a lot of knowledge about coffee. Spanish people did not know to distinguish between different varieties of coffee. Therefore, Starbucks established programs in Spain to help people to learn about coffee culture, which included tasting of different kinds of coffee.4