Market Entry Strategies Case Study

Starbucks in Germany

OR

Abstract:
Starbucks, the multinational chain of gourmet coffee shops, entered the number one coffee drinking country in Europe – Germany, through a joint venture with the German retail chain, KarstadtQuelle. It faced stiff competition from retailers who emulated Starbucks' business model, often adding a local taste. Its German partner was battling its own poor financial performance because of sluggish consumer spending. Two years into its operation, KarstadtQuelle was reviewing the joint venture contract.

Pedagogical Objectives:

• To understand the reasons for the failure of Starbucks’ business model in Germany
• To discuss Starbucks’ efforts to overcome various operational hurdles faced in Germany.

Keywords : Starbucks in Germany; Restaurant and cafe industry; KarstadtQuelle (Karstadt); Market Entry Strategies Case Study; Departmental stores; Growth strategies; Coffee house; Competitive strategy; Global expansion strategy; Cappucchino; Howard Schultz

Contents : 
2001: An Optimistic Deal
Germanforay
2004: Three More Years To Break Even
The Challenge
Store Operating Data
Starbucks International Outlets
Coffee Consumption In European Countries