Why do you think Starbucks decided to enter the Japanese market via a joint venture with...

Why do you think Starbucks decided to enter the Japanese market via a joint venture with

a Japanese Company? What lesson can you draw from this

Solutions

Expert Solution

Starbucks entered Japan in 1995 in a joint venture with Japanese retailer named Sazaby League due to the following reasons:

1. Even though Starbacks had changed the way Americans consumed coffee, they remained inexperienced on an international level. Partnering with a known Japenese brand would allow them to make the idea of American coffee more appealing to the Japenese population.

2. Entering into JV would help to minimize risk for Starbucks as the risk would be divided among both the partners.

3. Since Sazaby League already had a good brand image and distribution channel in the whole japenese market, it will be easier for Starbucks for successful entry into the foreign market.

the lesson from this JV is that in case of entering into new international markets partnering with an estabilished local business helps to understand the local market and migitate potential risks to make successful business model.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Do you think Starbucks should continuously enter foreign markets through joint-venture partnerships? What are some benefits...

Do you think Starbucks should continuously enter foreign markets through joint-venture partnerships? What are some benefits and concerns that Starbucks faces by doing this?

ABC Fund has decided to enter a joint venture with Newton Development Inc. to develop and...

ABC Fund has decided to enter a joint venture with Newton Development Inc. to develop and operate an office building that will require an initial investment of $200 million to cover all the development costs. There will be no debt financing for the joint venture. Each partner invests its capital at the beginning of the first year and cash flow from operations is projected as follows: Year 1 $3,000,000 Year 2 $8,500,000 Year 3 $19,000,000 Year 4 $27,000,000 Year 5...

Why do you think that Amazon decided to enter the B2B Marketplace? What makes their offering...

Why do you think that Amazon decided to enter the B2B Marketplace? What makes their offering different from traditional B2B marketers and will this differentiation be enough to encourage B2B sellers and buyers to move to Amazon Business? Frame your answer (either pro and con) with arguments to backup your assessment. What can and should traditional B2B marketers and sellers do to combat Amazon’s entry into this marketplace?

2. ABC Fund has decided to enter a joint venture with Newton Development Inc. to develop...

2. ABC Fund has decided to enter a joint venture with Newton Development Inc. to develop and operate an office building that will require an initial investment of $200 million to cover all the development costs. There will be no debt financing for the joint venture. Each partner invests its capital at the beginning of the first year and cash flow from operations is projected as follows: Year 1 $3,000,000 Year 2 $8,500,000 Year 3 $19,000,000 Year 4 $27,000,000 Year...

Market entry strategies(Joint venture or Licensing) Which market entry strategy do you recommend for an American...

Market entry strategies(Joint venture or Licensing) Which market entry strategy do you recommend for an American automaker as the best option to enter china for their solar powered vehicles and why? Please need a longer answer and explanation.

which do you believe is harder to work in, a joint venture or an acquisition?

Joe and Sunny intend to enter into a business venture together and decided that a partnership...

Joe and Sunny intend to enter into a business venture together and decided that a partnership would be a desirable entity choice for federal income tax purposes. The partnership is named Michigan Partnership (“MIP”). For newly established MIP, Joe intends to contribute Property A with fair market value (“FMV”) of $800 and basis of $300. Sunny intends to contribute cash of $800. For purposes of this question, Joe and Sunny are equal partners with no special tax allocations. .Provide Joe’s...

Joe and Sunny intend to enter into a business venture together and decided that an S...

Joe and Sunny intend to enter into a business venture together and decided that an S corporation would be a desirable entity choice for federal income tax purposes. The corporation is named Michigan Inc. (“MII”). For newly established MII, Joe intends to contribute Property A with fair market value (“FMV”) of $800 and basis of $300. Sunny intends to contribute cash of $800. Joe and Sunny are equal owners of MII. Question: Assume at the end of Year 1, MII had...

1. Do you think the GM idea to enter Russian market will be a success? 2....

1. Do you think the GM idea to enter Russian market will be a success? 2. Did GM face competition from US companies going in Russia? 3. Do you think people have the purchasing power in Russia to buy cars? It is still a luxury thing, isn’t it? 4. Do you think it would be feasible for GM to go solo in Russia in future once it establishes its own distribution network and local labor force?

do you think that new companies/ startups will enter the market with stopng CSR because there...

do you think that new companies/ startups will enter the market with stopng CSR because there is such an awareness today?

Subjects