Question: What are the macroenvironment and microenvironment forces and its importance in Starbucks marketing activities internationally based on the findings in the 6 countries as below:
What are the macroenvironment and microenvironment forces and its importance in Starbucks marketing activities internationally based on the findings in the 6 countries as below:
Australia
1. Expanded too fast using the same business model for other continent.
2. Did not integrate Starbucks culture into local culture.
3. Accustom to Italian coffee instead of the American style. Preferred bonding with local barista instead of the to-go mentality.
3. Having too many outlets whilst creating a surplus of supply for the brand.
4. Matter of local preference for not liking too sugary drink sold in Starbucks.
5. Price is higher than local cafe.
6. Competition from Gloria Jean's that has a wide variety of espresso drinks and specialty coffee.
7. Targeted tourist market from US & China that visits the country to survive.
South Africa
1. High operating cost
2. Selling price is too expensive for the product costing 60% more compared to the same drink from McDonald or local cafe.
3. Political stability after Apartheid in the 90s has brought foreign back to the country.
4. The novelty of Starbucks dwindle after the opening.
5. Targeted upper class and middle consumer population which is small in growth and spending power is not there yet.
6. Unfavourable foreign exchange rate for purchase of equipment, high fuel prices and increased in taxes for it's poor financial result.
7. Competition from local cafe with same amnenities of clean open spaces to hangout, free wi-fi and lots of beverage.
8. Do not have establish coffe culture
Vietnam
1. Local preference towards Robusta bean coffee served in local cafe/roadside/restaurants whereas Starbucks only serve Arabica bean coffee.
2. Locals have tonnes of options to choose from for being the world's second largest coffee exporter with local chains expanding faster than their international counterparts.
3. Price is an issue to the locals as it only costs a dollar per cup with shoeshine service and free wi-fi with thousands of them on the streets.
4. Vietnamese spends 2.5x more in Western outlets than they spend in Asian outlets.
5. Local chains understand their customers better than international chains.
6. Tea drinking is more embedded than coffee drinking culture.
7. Growing middle class but still slow and small relatively.
8. The Doi Moi political reforms - the policy to encourage international companies to invest.
9. Third-wave coffee movement in recognition of the Vietnamese Coffee beans but the population is still small.
10. Market is highly fragmented with small family-owned and independent cafes.
11. Starbucks does not have a unique brand position and it is not as affordable as the local highland coffee.
Israel
1. Starbucks do not understand local coffee culture:-
a) locals do not like the to-go cup that makes Israelis feel like they are being rushed and
forced to leave.
b) Israelis prefer to sit around all-day for hours leisurely.
2. Locals are disappointed with their 1st Starbucks experience and they never re-visit again.
3. Competition from local cafe and price.
4. Israelis didn't care about the Starbucks experience and are unimpressed with the customer service.
5. Starbucks didn't adapt to local culture/get to know the Israelis consumer.
Italy
1. Has a different local coffee culture.
2. Productivity of an Italian cafe is 5s of a Starbucks
3. Modern management of zero monitoring at Starbucks that may incur additional overhead for the outlet.
4. Makes it difficult to scale the firm.
5. Unavailable to compete with the familiarity of the Italian coffee bar and compete on the price.
India
1. High selling price that is unaffordable by most local.
2. Competition from local cafe that are at par on the Starbucks taste and facilities, locals thinks
that they taste the same at a lower price.
3. Has high brand value and didn't compromise on their raw material causing them to have high
raw material cost.
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