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Internationalisation of Starbucks
Essay specific features
Written by:
Judith D
Date added:
December 18, 2013
Level:
University
Grade:
B
No of pages / words:
4 / 915
Was viewed:
9874 times
Rating of current essay:
Essay content:
In the Starbucks case, only the first of these three is a valid motivation for multinational expansion. Experience and location economies are primarily concerned with cost economies derived from minimising manufacturing costs, vertical internalisation and overcoming transactional market imperfections...
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In the Starbucks case however I am primarily concerned with the utilisation of Starbucks' intangible core competencies and the horizontal expansion of multiple retail outlets into foreign markets where structural market imperfections exist.
To some extent, Starbucks is already vertically integrated across national borders with significant bargaining power downstream in the value chain over farms, coffee mills and coffee exporters in countries such as Guatemala, Costa-Rica and Indonesia (Carolis research)...
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