The implemented foreign market entry strategy under the leadership of CEO Howard Schultz was efficient, but it is likely to be altered under the influence of external factors. It is clear that Starbucks’ policies resulted in the growing meaning of such sites as China and India for the business development in contrast to the slow pace of progress in the United States. However, it is vital to take into account the shift in customers’ preferences due to COVID-19 and lockdowns and the changing competition in the context of critical locations to satisfy everyone’s needs.
These considerations should be complemented by the political course of the target places varying depending on the severity of the threat. For example, one of the main conditions which defined the success of the project in China was this country’s openness to potential foreign investments. At present, most governments are unwilling to attract entrepreneurs since the environment is unstable and, therefore, the strategic choices of Starbucks will be inevitably reassessed.
In turn, the new benefits and drawbacks of the prospective expansion stemming from the crisis will affect the progress of the business in other stores abroad. The former includes the incorporation of practices similar to the ones developed in the United States because of COVID-19. Meanwhile, the latter is presented by the difficulties in finding partners at a time when local people are focused more on maintaining their companies rather than cooperating with others. From this perspective, it is reasonable to expect a change in Starbucks’ strategy. More specifically, it is likely to be connected to the efforts to provide licensing agreements to entrepreneurs compensating for the continuously emerging risks.
- Starbucks’ Culture and Howard Schultz’s Leadership
- Starbucks Company’s International Business Strategy
- Marketing Strategy of Starbucks in Japan
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- Starbucks Corporation’s Entry into China
- Starbucks’ Expansion: Strategies for Successful Entry
- Starbucks Company’s Brand in Bangladesh Market