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

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

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