Starbucks Cultural Barriers Essay

Starbucks has been a critical icon in the coffee culture of America, formed in 1983 as the result of founder and CEO Howard Schultz deciding to replicate Italy’s coffee culture in America. The idea was that Starbucks would be the third place alongside home and work that society would frequent daily. Starbucks today has more than 19,000 stores in 62 countries around the world and as a result has a considerable amount of opportunities to seize. It has not been easy however, as cultural barriers have proven to be Starbuck’s biggest obstacle despite amazing quality. One such nation where it has proven to be the most difficult on the cultural side has been China, despite having 550 international stores there. Backlash from the Chinese media and

• Economic Barriers – Starbuck’s beverages are notably high priced and of extremely high quality. However, countries like China have higher-than usual operating costs and as a result the prices of Starbucks beverages sold there are more than half of what is sold in the United States. Additionally, in nations like India, their domestic beverages can be sold for a smaller percentage of what a Starbucks beverage could be sold for.

Starbucks has been my favorite coffee shop for many years of my late teens/adult life. I have a rewards membership with them that after twelve beverage/food items bought I’m rewarded with a temporary reward to get a free beverage or food item. Since I’m a gold member, I’ve bought so many beverages from them that my gold membership currently lasts until 28 June 2017. The high cost of the drinks is well worth the taste in my opinion. Normally I just go for the regular dark coffee, but the exotic drinks such as lattes and cappuccinos are nothing short of amazing to taste. That being said, I can see why other nations are not warm to Starbucks like I am. I remember fondly when Starbucks tried to build too many retail stores, especially back home in Georgia where I hilariously saw a Starbucks right across the street from another Starbucks. This over-expansion can be meet

With over 18,000 stores worldwide (13000 alone in the North American countries) Starbucks is certainly treating the entire world as a singular entity with its growing expansion. However, as recently seen with China and India, customization plays a critical role in local markets to cater to specific cultures.

The most significant barriers Starbucks faces have definitely been socialcultural and economic. An example of one of Starbuck’s obstacles in India is the Café Coffee Day franchise that has over 1500 cafes across the country. Starbucks on the other hand only has 71. The local franchise is able to sell coffee significantly less than what Starbucks can price theirs. Additionally, the inclusion of kiosks and vending machines holds an advantage over the traditional Starbucks café, allowing the franchise to sell coffee with little maintenance and still spread its reach throughout India and beyond. The cafe’s also cater to various demographics, which has been another of Starbuck’s challenges in foreign nations not influenced by Western