Sei sulla pagina 1di 4

4) Why do you think Starbucks has elected to expand internationally primarily through local joint ventures to whom it licenses

its format, as opposed to using a pure licensing strategy?

In the first starbucks had resisted a franchising strategy in North America. When the starbucks decided to expand there business in overseas than company think about the licensing strategy . However, the company know that the pure licensing strategy would not give starbuck that control needed. So finally the company go through the joint ventures with local retail company as Example: Sazaby Inc. in Japan and ESCO Korea LTD in south Korea.

ADVANTAGE OF JOINT VENTURE The company(starbuck) realized that if the company apply the pure licensing Scheme then the control in the market from the company getting reduced then the company decided to go through the joint venture, that gives other benefit to 1. It allowed the company to the liberty to trained foreign working party by transferring some employee from the USA

2. Better facility into foreign market

Potrebbero piacerti anche