-Starbucks has a good reputation in the U.S. for having good coffee and a comfortable environment inside the store for the customer. Also, it is recognized as a hip place for younger people to visit to enjoy their coffee.
-Starbucks has a great deal of experience in the U.S., but does not know the international marketplace as well. There are many cultural differences in other countries that must be considered, such as the coffee drinking habits of other cultures, and also, customers did not like the flavor of Starbucks coffee as much as others.
-Starbucks is seen as “hip” to younger people in other countries, with the self-service operation where patrons did not have to wait for a waiter. Starbucks is selling “an experience that was unique only to Starbucks stores,” and had the opportunity to reach a different consumer than the traditional coffee shops.
-Starbucks faced political problems when Arab students in the Middle East called for a “boycott
of American goods and services,” including Starbucks. Also, Starbucks faced threats from
NGOs which made it necessary to use coffee beans that were “grown under certain economic
and social conditions.”
-Starbucks faced competitors who offered lower prices than theirs for the same quality of
product.
¬-Starbucks must know their customer in these foreign markets to attract business. For example, there is no smoking in their stores, but in many countries, smoking in public stores and shops is much more common than in the U.S. Also, Starbucks should “focus on pricing” and offer quality coffee at a competitive price, while still maintaining the level of customer service that has made Starbucks so well known....