Starbucks étude en histoire section euro

« Prove that Starbucks is a TNC and explain its globalized marketing strategy. In a world where global brands shape everyday habits, Starbucks has become more than just a coffee shop, it is now a symbol of how TNCs influence culture, consumption, and identity around the world.

But, to understand how Starbucks is TNC we will in a first time define what is a TNC.

Indeed, a TNC (or transnational company) is an entreprise that is involved with the international production of goods or services, foreign investments, or income and asset management in more than one country.

So to prove that Starbucks is a TNC and show its marketing strategy, we will in a first time study Starbucks as a TNC, and afterwards, we will see Starbucks’ marketing strategies. I) Starbucks as a TNC Firstly, we will look at the geographical expansion of Starbucks in 50 years. Starbucks began with one only shop in Seattle and nowadays as around thirty six thousand location all around the world.

Also, Starbucks is located in a total of 85 countries out of 195 countries.

By their presence in almost every part of the world, they are covering all of the North America, a Large part of south America, Europe, eastern Asia (excluding Russia for political reasons), the Persian gulf, and a very few countries in Africa (Morocco, Egypt and South Africa.

This has been made years after years by opening each years new stores in an exponential way going from 17 stores in 1987 to 1015 in 1996 so in only 9 years, and if we look around 10 years later, there is 12440 stores opened in the world in 2006. Secondly, we can see that Starbucks have a certain transnational organisation that reflects that Starbucks is a TNC.

While its headquarters remain in Seattle, where the corporation has been founded.

the company has established a network of subsidiaries, joint ventures, and licensed stores across the globe.

Per example in countries like in China, Starbucks use the principle of joint ventures with local company to adapt easily to the culture and study it.

Also, this organisation allows Starbucks to have a centralized control over the brand, while simultaneously adapting to local markets.

Also, we can see that Starbucks adapt to the local market, actually while looking at the price for coffee on every country, we can tell that they are very different from 1.31 $ for the cheapest countries like Turkey, up to 7.17$ for the most expensive ones like Switzerland.

This large variety of prices is not decided randomly but it is base on the purchase power of the country.

The purchase power of a country is calculated based on the country average wages and the consuming price.

Moreover, there is only processing plant in USA which mean every Starbucks products are going toward the USA and every Starbucks products are exported from the USA, it cost Starbucks almost the same to provide a country in eastern Asia or a country in middle Europe with their product, and with this strategy it let Starbucks choose freely the price of the products in a specific country without thinking about the exportations cost.

So by comparing the quality of life and the price of a tall latte in a country we can see it is correlative, for example, in Turkey where the salaries are low, the tall latte are the cheaper, in Switzerland where the quality of life is one of the highest, the price of a tall latte is also the most expensive.

The only exception to this rule is the USA, having a high purchasing power but with a low price, but it can be explained by the fact the production is local is the USA.

arbucks doesn't just use globalization to boost their sales.

Starbucks, like a lot of other TNC, doesn’t produce its good locally.

Indeed, the Headquarters and transformation facilities are located in the United States.

but the Beams, necessary for the production of coffee are being produced in various third world countries such as Yemen,Tanzania, Ethiopia, Kenya, Peru, Bolivia, Indonesia, Mexico and multiple other countries all around the world and with a lower producing cost and an adapted climate.This method is not new, its is called International division labour and is used by nearly all of the goods producing TNCs (like fashion brands producing clothes in Bangladesh or China and selling them to America or phone brands creating their components in China or Taiwan) Starbucks also offshore their sugar production.They produce sugar in Australia,India and Brazil.

After, they transport everything to the processing plants in America to turn beam and sugar into coffee and then ship it to its 36000 location world wide.

This is called offshoring.... »