International Marketing – Starbucks Case Analysis Essay Example

Starbucks is known for its high quality service they should focus more on the employees and provide incentives and better working conditions to their staff. The more satisfied the employees are, the more satisfied customers will be. This will have an impact on improving a quality of customers buying experience and help with building customer loyalty. Furthermore, instead of spending a lot of money on “predatory real estate” strategy, they should spend more money on advertising their products to public and investing in appearance of already existing stores. At the same time when Starbucks are blocking other companies from opening new stores, customers may get annoyed over having fewer choices.

Question 4: How might Starbucks improve profitability in Japan? In order to improve profitability in Japan Starbucks should reposition their products and service. Price of products could be increased since Japanese customers do not mind buying more costly products “as long as they are sweet”. Also, because of the fact that Japanese society is more technologically savvy than American community, Starbucks online system could become successful in Japan. In order to save some time, busy Japanese could pre-order and prepay for their purchase via phone or on the Starbucks Express Web site. That technology innovation would give Starbucks a comparative advantage.