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Tuesday, September 27, 2005

Starbucks Case Study Analysis

CONCLUSION The law of big numbers almost always catches up to a growing company. It is tough to grow 40% a year, with an increase of $40 million in sales for a $100 million company. But it is even harder for a $1 billion company to achieve that same 40% growth. They would need to grow $400 million in added sales to reach that same 40%. Only by Schultz's constant monitoring of Starbucks global expansion, finding the correct mixture of joint ventures, licenses, and company owned stores will Starbucks be able to beat the law of big numbers. Starbucks must work with their successful international partners to expand to new territories. The partners can help identify locations, sift through tax issues and give Starbucks stores a more local community appeal. Their partners will be able to help Starbucks expand its product development by getting their bottled Frappuccino ® coffee drinks, Starbucks DoubleShot™ coffee drink and line of super premium ice creams into new international stores. Starbucks needs to work with its partners to ensure that the local Starbucks experience is enjoyed by all of its customers and leaving them wanting more.

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