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Industry Based View Essay

  • Submitted by: ahshushu
  • on February 21, 2014
  • Category: English
  • Length: 294 words

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Below is an essay on "Industry Based View" from Anti Essays, your source for research papers, essays, and term paper examples.

For every coffee shop in New York, there were 365 customers therefore proving market saturation in the US (nytimes.com). This difficulty meant looking beyond the American border in order to increase profitability and thus resulted in internationalisation. The target countries that are chosen usually have real potential due to population sizes and the amount of people with high disposable income and with a high interest in ¶Americanization•. In the years of Starbucks• expansion, America was the most developed and innovative country. Western nations had a great interest in American products and culture, which motivated managers to bring in well known brands to other countries. After the huge success in Japan (first Starbucks• coffee shop outside US), the motive to expand to other regions and countries became stronger. This motivated the firm to implement first mover advantage or follow the main competitors such as McDonald•s and Dunkin• Donuts. McDonald•s was spreading out American way of life which provided Starbucks with an advantage in its innovative strategies of healthier snacks that would give an advantage in other countries where the healthy life style was popular. With technological influences, all countries become a part of the ¶global village•, where people have the same preferences and tastes. (McLuhan, Marshall 2003). This lowered the risk of backlash from cultural awareness and motivated Starbucks to meet customer needs and expand globally. However to get into the target market Starbucks needs to follow the host countries government regulations, which are not always favourable for the company. However USA are members in NATO, APEC, NAFTA and Pacific Community trading blocks. This makes the supply of raw materials cheaper and allows Starbucks to provide the high quality service for a lower price. This advantage motivates the firm to enter new marketplaces

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Industry Based View. Anti Essays. Retrieved December 15, 2018, from the World Wide Web: http://teachingsail.com/free-essays/Industry-Based-View-584376.html


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