r the possibility of imitations. (4) Starbucks sought partners that had the ability and experience to locate prime real estate for coffee-bar locations with a (5) knowledge of the retail market. Finally, (6) Starbucks looked for partners who had the manpower available to make a full commitment to the project. It was this selection criterion which aided Starbucks in implementing the benefits of partnerships to their international operation expansion.When looking at Starbucks international entry strategy, three main potential benefits arise from the development of the partnership. These benefits had and have the potential to be varying in their degree of usefulness dependent upon the entry strategy Starbucks chooses, in this case Joint Venture (partnership). The three main potential benefits of a joint venture entry strategy are: protection of the sustainable competitive advantage, reduction in the financial risk incurred by the firm (Starbucks), and the benefit of knowing how well the US product will do in the foreign market through local adaptation. We will examine each of these more fully from the viewpoint of Starbucks entering into the Japanese foreign market. In a company where coffee is a way of life, Starbucks had to fully deploy the creativity of its originator to develop a sustainable competitive advantage and be a focused differentiator. It could be said, that the quality of the coffee Starbucks serves is a competitive advantage, however, even though the coffee process is valuable to the company, it is not unique. It fact, they have developed their process from other peoples ideas, not their own invention. Actually, it is their people who are their competitive advantage. After all, working at a place you could be called a baristas, you know people are the business. The found of Starbucks agrees with this stating ‘”Our only sustainable advantage is the quality of our work force”’. However, a ...
