nnovative against mom-and-pop Japanese coffee shopsStrong cultureBrand awarenessEmployees’ empowerment Healthy finance situationWEAKNESSESLow presence in the 3rd largest coffee market (Japan) and Asia in general Limited Channels of DistributionJapan has already 115.000 coffee shopsOPPORTUNITIESExpansion to International MarketsDecline in use of alcohol can make coffee the new destinationTHREATSKeep consolidated culture as expanding via partnership Expected increase in the cost of coffee beansCoca cola has alone 800.000 vending machines with canned coffeeStarbucks can suffer from retaliation from well-established playerJapanese haven’t developed Italian taste for espresso IV - STRATEGYTARGET Japan – reinforce presenceOVERALL STRATEGY Reinforce presence through a joint venture or acquisition, finding the right partner which shares the same values and goals, once partnership and local connections is everything in Asia. By this way, Starbucks can take chance of one of its competitive advantage, which is its brand’s recognition.One option should be the acquisition of an established chain as Pronto, which has, in 1996 numbers, 95 outlets, and are threatened with the entrance of Starbucks in their market.Development of a marketing/advertising plan with the objective to place Starbucks as a premium and differentiate brand in Japan, although its price is lower than a cup of coffee in Tokyo (JPY 280 against JPY 399), to be in accordance to Starbucks image of high quality and sophistication of the unique specialty coffee experience....
