Recommendations of Starbucks China Managing Growth Through Innovation Case Solution

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Recommendations of Starbucks China Managing Growth Through Innovation Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is recommended to think about alternative 3. As alternative 3 would enable the company to broaden in global markets without any decrease in its local incomes and any wear and tear of its market position. The business might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Starbucks China Managing Growth Through Innovation Case Solution Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the worldwide presence of the business. Nevertheless, the closing of domestic shops could highly impact the revenues of the firm as above 90% of its shops lie locally and closing those shops would ultimately lower the earnings of the company. Additionally, the business has a long term market position in United States which can not be created quickly in the new markets. The alternative would help the business to broaden in worldwide markets along with the removal of issues raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in profits from worldwide markets.
• Removal of problems associated with variety.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competition.
• Distinctions in cultures might caused a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Starbucks China Managing Growth Through Innovation Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present an extreme risk to the market share of company. In this scenario the business could consider presenting Click and Recommendations of Starbucks China Managing Growth Through Innovation Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Uniqueness
• Elimination of the fantastic shop experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the business could consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of incomes of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of new worldwide markets.
• Increase in earnings from global markets.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Extension of concerns related to variety.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



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