Starbucks venture into Europe and Asia（一）.docVIP

Starbucks venture into Europe and Asia When Starbucks Corp. opened its first Japanese café in Tokyos fashionable Ginza shopping district in 1996, it was an overnight smash. In 2003, Japan boasted Starbucks biggest foray outside the U.S. in 2003. Trouble is, after just two profitable years, Starbucks is no longer making money in Japan. On May 20, 2003 Starbucks Japanese business announced an annual loss of $3.9 million on revenues of $467 million. Schultz blames Japans bad year on a weak economy and the high cost of overhead. It isnt just Japan. From Zurich to Tel Aviv, Starbucks overseas expansion is running into trouble. Starbucks cafés have encountered a host of problems, from high startup costs to stiff competition, and, in many cases, resistance to the Starbucks experience. (Source 1) Overseas expansion has been tricky. Unlike in the U.S., Starbucks faces big rivals in Europe and Asia. Another reason Starbucks hasnt been as successful abroad as in the U.S. may be the complex series of joint ventures Schultz agreed to in order to expand quickly. While the company gets a slice of revenues and profits as well as licensing fees for supplying its coffee, it has been harder than in the U.S. to control costs. (Source 1). Starbucks global expansion has followed the following formula: They hook up with local partners that have a successful track record, and create a look and a menu that fits in with local tastes. Schultz said Starbucks is constantly being wooed by potential partners. (Source 2). Starbucks expanded in 2004; they opened 1,344 new spaces in the first three quarters, to bring its global total to 8,569 in more than 30 countries. The hyper-caffeinated brand intends to expand to 15,000 US stores and 15,000 international stores. The expansion’s timeframe is unclear. (Source 5). In 2004 CEO Orin Smith says that stores abroad are gaining acceptance. When asked what helped turn the corner Smith said: Were simply maturing. Not that were getting close