Howard Schultz and the Starbucks Company

Maln Problem Statement After analyzing each aspects and factors, the main problem statement found for this case study is as follows The rapid and over expansion plan of Starbucks store- owned outlets to capture the upper limit market sh are has lead to many a(prenominal) problems As stated above, Starbucks is veneering the problem of fast and over expanding of its outlets as the company tries to gain as much market share and opportunities as possible.This, however has led to many problems such as cannibalization of usiness through clustering and low net Income leeway despite achieving record sales and revenues. The problem is further complicated by other problems such as Insistence of the company to store-own outlets outside the brotherhood American region and increased number of employees at Starbucks. 3. 0 localize Expansion Only on under-served Countries and Locations One of the alternative strategies that could help to sour the main problem Is to change the Starbucks policy on outlet openings.In this strategy, Starbucks should signalize countries or locations where the company has the least presence and oothold choosing to open outlets only at these locations while stop outlet openings in areas where the company already has effected itselt. For example, Starbucks should look into the China and South Korea market as there are currently only 9 outlets and 1 outlet of Starbucks In those locations, respectively. 3. 2 Allow Another strategy is to allow the franchising of the Starbucks brand to locations outside the northeastern American market.