Question

Can you find examples of Starbucks facing inter-regional liability of foreignness? How did Starbucks deal with this? What could have been done differently?

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

Inter-regional liability of foreignness means that when the company tries to increase its business and wants to extend its business in different countries of the world then they face this kind of liability. It means that they are not aware of the various things of the host country there trying to develop their business into. They go through some additional cost for not having complete information about that country. For example, if Starbucks wanted to expand its business in England then they should be having clear information about the local companies who are ruling there before them. They started their business in England and wanted to rule there but they were unaware of the fact that Costa coffee is having a great market share and customers preference in England and because of having can complete information they have to go through additional charges. To deal with this Starbucks needs to do more advertisements in England which will attract the customers to their company and try to give the best level of satisfaction to the customers if they reach you. this will help you to increase the market share slowly and you will be able to compete with the local company there. Moreover, with the help of the brand best they can reach out to who many people of their country e while showing them the quality of your company and about your brand. This will help you to compete with the local companies who are already established in England.