Starbucks entered the Philippine market in 1998 through a partnership with Rustan Commercial Corporation. Rustan's real estate and customer experience expertise helped Starbucks succeed where others had doubts. Starbucks international president at the time acknowledged it was a risk but trusted his Philippine partners. The partnership has paid off with over 195 stores in the country, exceeding initial expectations of only 25 stores due to the Philippine people and business leaders Starbucks partnered with.

1. ENTRY MODES OF STARBUCKS
IN
DIFFERENT COUNTRIES
Shivashish Ghosh - Nitish Kumar - Kashish Ahuja - Dhruv Bakshi - Mohak Sharma - Prateek Gulati - Amit Pandit

2.  Starbucks Corporation is an American coffee company and coffeehouse chain.
 Starbucks was founded in Seattle, Washington in 1971.
As of November 2016, it operates 23,768 locations worldwide.
 Starbucks is considered the main representative of "second wave coffee", initially distinguishing
itself from other coffee-serving venues in the US by taste, quality, and customer experience while
popularizing darkly roasted coffee.
 Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made
coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for
efficiency and safety reasons.
• The second wave of coffee is defined as the movement to high quality beans, espresso based drinks and darker roasts.
• The third wave of coffee refers to a current movement to produce high-quality coffee, and consider coffee as an
artisanal foodstuff, like wine, rather than a commodity.

3.  Through a licensing agreement with trading partner and licensee MH Alshaya WLL, a private Kuwait family
business, Starbucks has operated in the Middle East since 1999.
 MH Alshaya WLL currently operates more than 3,500 stores in seven sectors – Fashion & Footwear, Health &
Beauty, Food, Optics, Pharmacy, Home Furnishings and Leisure & Entertainment – and employs more than
50,000 people
 Today Alshaya Group, recognized as one of the leading and most influential retailing franchisees in the region,
operates nearly 600 Starbucks stores in the Middle East and Levant region.
 Starbucks partner with Alshaya Group to operate Starbucks stores in Bahrain, Egypt, Jordan, Kuwait, Lebanon,
Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates in the Middle East and North Africa
region.
 They are also committed to hiring locally, providing jobs to thousands of local citizens in the countries where
they operate .
Starbucks
Middle East Mohammed Abdul Aziz Alshaya
Chairman M.H.Alshaya

4.  In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee
Company stores in the UK.
 Seattle Coffee Company was originally run by two Americans, Scott and Ally Svenson.
 The two companies shared a common culture, focussing on a great commitment to customised coffee, similar
company values and a mutual respect for people and the environment.
 They hoped to benefit from the pub culture in the UK to make Starbucks a natural meeting place for people.
 The company's strategy is to reposition coffee as a luxury good, comparable to a good wine.
 It believes that just as in the US the taste for good wine had to be cultivated before the wine-growing business
could expand, that developing a palate for fine coffee is essential for its own expansion.
Starbucks
United Kingdom

5.  Starbucks Coffee Japan was established in October 1995, as a joint venture between Sazaby League and
Starbucks Coffee International, the international arm and subsidiary of Starbucks Coffee Company .
 Since the opening of their first store on August 2, 1996, in the Ginza district of Tokyo, its network has expanded
rapidly throughout the country and has reached 1,288 stores as of the end of June 2017.
 Starbucks Coffee Japan became a wholly owned subsidiary of Starbucks Corporation as of March 2015 and
was delisted from Tokyo Stock Exchange.
 In 1995 , Starbucks forms an alliance with Chapters Bookstores in Canada, creating what will
eventually become the ultimate Canadian book and coffee lover’s experience.
 The next year marked the first stores in the Ontario market, with the January 20th opening of 5
stores throughout the greater Toronto area.
 To date, Starbucks Coffee Canada has over 700 company-operated stores and over 250 licensed
concept stores across the country.
Starbucks
Japan
Starbucks
Canada

6.  Starbucks and AmRest formed the Polish partnership in 2007. THE FIRST Polish Café was opened in the city of
Warsaw .
 The Warsaw store will be run by AmRest Coffee, a joint venture between Starbucks International Inc. and a
subsidiary of the Dutch company AmRest Holdings N.V.
 Starbucks waited a long time to find the right opportunity to enter Poland, a country that has enthusiastically
embraced the coffeehouse culture.
 AmRest partnered with Starbucks to open the first cafe in the Czech Republic. The two companies are also
partners in the Hungarian market.
 AmRest also manages KFC, Pizza Hut and Burger King in Central and Eastern Europe
 The first Starbucks Coffee Company store in the Republic of Ireland was launched in August 2005 at Dundrum
Town Centre, followed by a second store at College Green in Dublin in September.
 Starbucks has been working with Ritea Limited since 2007 and it’s clear from their track record that they have
the expertise to successfully take the Starbucks business forward in the Republic of Ireland and maximize
opportunities for growth.
 Running the business with Irish expertise makes the business more flexible and able to adapt to Irish
customers and conditions.
Starbucks
Poland
Starbucks Ireland

7.  Starbucks Corp. said it has established a new affiliate in Switzerland, Starbucks Coffee Trading Co., in the
canton of Vaud, Lausanne, to handle the company's global green coffee purchasing.
 In 2001 the brand established a Swiss retail presence, and now they have 53 stores in the country. They
partnered with Swiss Federal Railways, aka SBB, on this venture.
 Here the SBB initials don’t signify “Starbucks brand building”; they’re the Swiss-German translation of the
national railway’s name.
 Switzerland was Starbucks’ first outpost in Continental Europe, and now this is the first train in the world with a
Starbucks café.
Starbucks
Switzerland

8.  Starbucks and Chinese leading food and beverage producer Tingyi Holding Corp. entered into an agreement
to manufacture and expand the distribution of Starbucks ready-to-drink (RTD) products throughout mainland
China.
 According to the agreement, Starbucks is responsible for providing coffee expertise, brand development and
future product innovation, and Tingyi is manufacturing and selling Starbucks RTD portfolio in China.
 China is Starbucks fastest growing market outside the U.S. with more than 1,500 stores in nearly 90 cities, and
more than 25,000 partners (employees).
 Tingyi Holding Corp. is China's leading food and beverage company that specializes in the production and
distribution of instant noodles, beverages and baked goods which, after more than 20 years of development,
boasts world-leading production facilities and management expertise with a broad spectrum of quality channel
resources.
 Tingyi’s local manufacturing, sales and distribution expertise combined with Starbucks strong brand recognition
and coffee expertise will unlock new market opportunities.
Starbucks
China

9.  As Brazil is the biggest harvester of coffee , producing approx 55.9 million 60-kilogram (132-pound) bags of
coffee every year .
 It results in the elimination of acquisition cost of coffee grains such as Robusta beans and Arabica beans as
the beans itself came from Brazil
 It protects Starbucks against low prices to avoid immoral tax because import taxes incurred would have make
Starbucks coffee in Brazil more expensive , than it is .
 Furthermore, it also helps in decreasing the transportation cost because the distance is within Brazil , hence
that helps Starbucks to save more costs.

Starbucks Brazil

10.  As a result, Starbucks in Brazil does not need to import coffee grains such as Arabica or Robusta beans because it
harvest in its own country.
 In contrary to the advantages gained by Starbucks, there are some problems Starbucks is facing ,such as , Brazilian
consumers have a culture of smoking while they are enjoying a cup of coffee, Starbucks may lose its customers
as they don’t allow its customers to smoke in its stores.
 Smoking is prohibited even in countries with smoking cultures, saying it would interfere with its coffee aroma
inside the stores.
 In addition, Starbucks is facing high competition with local coffee business chain such as Café do Ponto and
Fran's café.

11.  Alsea, the operator in Mexico of the Starbucks chain of coffee outlets, is to take over 100 per cent of the
Seattle-based company’s operations in Argentina and Chile.
 The decision of strategic alliance was based on the advantages Starbucks found in a trusted local company that
helps it to better understand and operate in Latin American markets.
 Alsea has been operating Starbucks in Mexico since 2002 and opened 382 coffee shops in the country. It
operates a roster of other fast food outlets in Mexico that includes Domino’s, Burger King and Chili’s.
 In Mexico, two coffee chains that have emerged quickly in the past couple of years are Punta del Cielo and
Cielito Querido, which are posing a challenge to the dominant position so far enjoyed by Starbucks.
 Both chains have sought to differentiate themselves from the US giant by emphasising their Mexican origins,
promoting Mexican coffee and Mexican beverages such as café de olla – a sweet type of Mexican coffee with
added cinnamon.
 Yet both Mexican companies also seek to adhere to the Starbucks formula of inviting people to have
different types of experience while drinking different types of coffee – lattes, frappuccinos, cappuccinos – in
well-lit branches with a cool ambience .
Starbucks
Mexico

12.  Starbucks’ partnership of many years with Alsea and the success they had together, gave them the confidence to
expand their strategic partnership .
 Hence , they moved in to the Argentine and Chilean markets too .
 Back in October 2007, Starbucks invited Alsea to buy an 82 per cent stake in its Argentine affiliate and an 18 per
cent interest in its Chilean one.
 And it rewarded Alsea after five years of partnership by extending the expiration date of their partnership contract
to 2027, from a previous end date of 2022.
 This year, the partnership grew closer when Starbucks gave Alsea the right to acquire the 18 per cent stake it
didn’t own in their Mexican partnership, called Café Sirena. As a result, Alsea now owns totally that Mexican
company, which controls all Starbucks operations in the country.
 Now the same treatment is being given by Starbucks to Alsea in Argentina and Chile.
 The company's expansion in Argentina brings it into competition with McDonald's Corp.'s (MCD) McCafe shops,
local coffee chain Aroma and Argentina's traditional street cafes.
Starbucks
Argentina
Chile

13.  Starbucks Coffee Singapore is a wholly owned subsidiary of Starbucks Coffee Corporation since June 2004.

Singapore is the third international country outside North America to introduce Starbucks to its discerning
customers who readily embrace the Starbucks Experience.
 The first Starbucks store opened on 14 December 1996 at Liat Towers, strategically located along the nation's
renowned Orchard Road shopping belt.
 Starbucks open its first store in Plaza Indonesia, Jakarta and its first flagship in Plaza Senayan, Jakarta. The first
store in Surabaya was also opened at Tunjungan Plaza 4
 Starbucks opened its first 24-hour store in Skyline Building Thamrin. As part of its commitment to continue to
innovate, Starbucks introduced WiFi to the store for the first time. Starbucks also opened its first store in
Sumatra at Sun Plaza Medan and conducted the first Coffee Ambassador
Competition.
 Starbucks Coffee Indonesia is now in 147 different locations all around major cities (12 cities), connecting to
Indonesians one cup at a time.
Starbucks
Singapore
Starbucks
Indonesia

14.  Starbucks® in Malaysia is operated by Berjaya Starbucks Coffee Company Sdn Bhd.,a licensee of Starbucks
Coffee International.
 From their first store opening in Kuala Lumpur on 17 December 1998, they have expanded to Sabah and Sarawak
and surpassed the 200 stores milestone in March 2017.
 Starbucks Malaysia has been named as Malaysia’s best employer at the Aon Hewitt Best Employers- Malaysia
2015 Awards, receiving the title - ‘Best of the Best’.
 In 2011, Starbucks Malaysia introduced Starbucks Card in Malaysia where customers are now able to enjoy their
cup of coffee with just a swipe at anytime and anywhere. The Starbucks Card Mobile Application was
introduced in 2014, making it the fastest and most convenient way to pay at Starbucks which provides greater
convenience to their customers.
 Starbucks Malaysia celebrates the Global Month of Service every April and organizes community service
projects in which takes place simultaneously around the world; where partners and customers dedicate their
time and energy to create positive change in their local neighborhoods.
 Last April, Starbucks Malaysia executed 38 community service projects and achieving 27,437 community service
hours.
Starbucks Malaysia

15.  Starbucks and Lasino S.A. signed a licensing agreement earlier this year to open stores in Peru. Lasino S.A is
responsible for managing the operations in the market.
 Starbucks Peru Coffee is sourced from Conservation International's (CI) Conservation Coffee project site in
Peru's upper Tambopata Valley. This coffee is grown and processed using production methods that protect local
biodiversity and provide economic and social benefits for local coffee farmers
 Lasino S.A. is part of a group led by Delosi S.A., a leading restaurant developer with more than 20 years of
experience in the Peruvian market.
Offerings only in Peru –
 Lúcuma Frappuccino
The lúcuma is a mango-like fruit that is native to the subtropical Andean valleys of Peru and Ecuador. Needless to say,
those indigenous tribes would have been pretty jazzed about his Lúcuma Frappuccino sold only at Peruvian Starbucks
locations.
 Algarrobina Frappuccino
In a nutshell, algarrobina is a sweet, molasses-like sauce that is made from black carrob trees, a species found almost
strictly in Peru. The flavoring is often used as a replacement to chocolate sauce . So it’s no wonder this sweet and
spicy sauce is used to make one of Peru’s most popular Starbucks frapps.
lucuma
frappuccino
Starbucks
Peru

16.  Shinsegae is basically Saks Fifth Avenue for Korea. Headed by the richest woman in Korea, Lee Myung-Hee,
Shinsegae owns 7 department stores and 27 E-Mart discount stores nationwide, and is a sole-proprietor of
Westin Chosun Hotel in Seoul.
 Starbucks and Shinsegae established a licensing agreement in 1997, and in 2000, December, after much
success and growth, Starbucks invested 100M won via buying out EscoKorea’s share to establish a joint venture
with Sinsegae.
 Korean market insight provided by Singsegae led Starbucks to establish their first few outlets near prestigious
Universities - Shinsegae leadership team believed it was University students , Starbucks had to target as first
wave of customers because Starbuck’s unique customizable ordering ritual may have been too complicated for
older generations.
 In November 2011, the Korea Fair Trade Commission (KFTC) began regulating the number of coffee shops
operated by large companies, aiming to protect small and midsize chains.Under the new rule, coffeehouse franchises
with more than 100 outlets were prohibited from opening new outlets within 500 meters of other coffee shops
 However, Starbucks Korea stores are directly managed by the company, and as such they are not subject to the
restriction.
Starbucks
South Korea

17.  About P32 a day -- less than half the cost of Starbucks smallest coffee -- was what nearly 1/4 of the population
lived on as late as 2009 according to the government family income and expenditure survey.
 "I didn't choose the Philippines because of the Philippines. I choose the Philippines because of the people,"
explained Behar.
 Behar related that he met with a various business leaders when he first visited the Philippines. One of them
was Noey Tantoco Lopez who comes from the family behind the Rustan's conglomerate
 Rustan's is a Philippine chain of upmarket department stores owned by Rustan Commercial Corporation.
 Behar cited the Tantoco's real estate experience, customer-oriented background and their adequate capital.
But other companies possessed the same assets. "When all the rest is equal, it's who you're comfortable with,"
 The move has been paying off. The Starbucks Philippines website lists 195 outlets in the country. Behar said he
only expected there to be 25 stores. He said Noey Tantoco Lopez knew better.
 Setting up a Starbucks franchise in the Philippines was a risk, admitted a former key executive of the largest
coffeehouse company in the world.’
 The decision to expand in the Philippines -- the 3rd market it entered in Asia over a decade ago -- initially did not sit well
with the Seattle-based premium coffee retailer, according to former Starbucks International president Howard Behar,
64.
 people at Starbucks in headquarters said, 'Why are you focusing on a country that has fairly shallow upper
incomes?'
Starbucks
Philippines

18. In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin opening Starbucks locations in
India. Despite a failure in 2007, in January 2012 Starbucks finally announced a 50:50 joint venture with Tata
Global Beverages, called Tata Starbucks Ltd. , which would own and operate outlets branded which would be called
as "Starbucks, A Tata Alliance".
Starbucks opened its first store in India, measuring 4500 sq ft in Elphinstone Building, Horniman Circle, Mumbai.
Starbucks expanded its presence to Delhi on 24 January 2013 by opening 2 outlets at Terminal III of the Indira
Gandhi International Airport,and later one in Connaught Place.
Tata Global Beverages announced in 2013 that they would have 50 locations by the end of the year, with an
investment of 4 billion (US$62 million). However, the company opened its 50th store in India only on 8 July 2014.
All espressos sold in Indian outlets are made from Indian roasted coffees supplied by Tata Coffee.
January 2017, Tata Starbucks introduced Starbucks' tea brand Teavana offering 18 different varieties of tea across
its outlets in India. One of the varieties, called the India Spice Majesty Blend, was specifically developed for the
Indian market and is exclusively sold only in India .
Starbucks
India

19.  Starbucks first registered its trademark in Russia in 1997 but did not open any shops here because of the
economic crisis of 1998.
 Then in 2002, as the Russian economy was picking up again, Sergei A. Zuykov( lawyer for Starbucks) filed a
request with Russian authorities to cancel the chain’s trademark because it had not been used in commerce in
Russia.
 He then registered Starbucks in the name of a Moscow company he represented as a lawyer.
 Mr. Zuykov, a lawyer and a former car alarm salesman who says he has claimed many brands, defended his stake
on the name Starbucks for three years, saying that if Starbucks would pay $600,000, he would abandon his
registration.
 The company refused to pay.
 He lost his case in November 2005 as Russia stepped up its bid for membership in the World Trade Organization
and hewed closer to international standards for the protection of intellectual property.
 Despite this setback, which allowed competitors a head start, Starbucks said it saw plenty of room for more coffee
shops in Russia.
 A market research showed that Moscow has one coffeehouse for every 3,187 people.
Starbucks
Russia

20.  Starbucks opened its first coffee shop in Russia in September 2007 in a mall in this city near Moscow.
 The opening sealed a victory for the company in a fight with a trademark squatter who had kept Starbucks from
coming to Russia for more than three years, just as a coffeehouse culture was emerging here.
 Starbucks refused to pay the squatter to yield the Starbucks name in Russia and eventually prevailed in court.
 The menu of basic coffee drinks is the same as in the United States, and indeed everywhere in the world
 The sandwiches and baked goods are adapted for local tastes. The Russian shop, for example, offers a
mushroom-and-cheese sandwich.
 In Russia, the prices are a reflection of the oil-driven economic boom here. A tall filter coffee costs 75 rubles,
or about $2.92. The most expensive item on the menu was a venti mocha, for 230 rubles, or about $8.96. A
venti mocha at Starbucks in New York costs $4.71.

21. Thank you !!!