Starbucks Expansion Strategy

A good article for A2 Business students in The Sunday Times today. This would make a good basis for a homework assignment on business strategy - particularly international expansion.

Here is a link to the Sunday Times article

Of course, the Starbucks growth strategy has been written about many times. However, I like this article. It largely avoids the often emotional debate about the role of Starbucks in changing the cultural landscape of countries into which it has expanded.

There is an interesting comparison of the expansion approaches that Starbucks took in Japan and the UK. I must admit to having an interest in the UK part. I was part of the team that sold Seattle Coffee Company to Starbucks - it was a wonderful transactions to be involved in. Seattle Coffee Co was expanded so rapidly that you couldnt actually get a cup of coffee at the head office - so chaotic was the organisation. The finances were all over the place too - but for Starbucks the opportunity was to establish 50+ outlets overnight, which it duly did through the acquisition.

Recent press articles have focused on how Starbucks sales are slowing in the US. However, the international growth story seems to be as strong as ever. There is even a Starbucks now in Afghanistan!