Overview

This essay sheds light on the power of globalization and elucidates how Starbucks has revolutionized the coffee industry. Furthermore, how rapid expansion into foreign markets allowed Starbucks to become the world's largest coffee chain is delineated in this essay. A paradigm of a company that has prudently capitalized on the opportunity to expand into foreign markets after struggling to further foster significant market share growth past 39.8% within the United States is Starbucks. The US economy has reached a state of maturity and marketplace saturation with little growth opportunities in the coffee market and Starbucks must therefore seek market share growth and new new revenue streams in foreign markets to further bolster profitably. Starbucks Corporation, an international coffee chain originated from Seattle, WA, operates in more than 40 countries across the world. Starbucks plans to more than double the rate of opening its stores within the global economy. Chief Executive Officer, Howard, informs Bloomberg News about opening 1000 more stores in coming years. China will be the biggest growth market for the largest coffee supplier within the next two years. As Starbucks continues to expand globally, we all can watch its achievements every day (Aigerim, 2010). Starbucks has been able to establish a foothold in ample foreign coffee markets and continues to rapidly expand their brand into a copious amount of more foreign countries so that they can attain increased brand growth and profitability. The power of globalization offers brands the opportunity to maximize profitability, establish a global presence in a myriad of foreign markets, and conduct business operations at low operating costs. Brands that efficaciously embrace globalization will be able to generate more revenue streams, attain more competitive advantages, and substantially reduce labor costs and the costs of goods sold far more so than brands that neglect to capitalize on globalization opportunities. Through globalization, Starbucks has expanded beyond just being a coffee house in Seattle, Washington. Starbucks has evolved into a world renowned brand that is known for their unique brewed coffee product offerings, modern day relaxing ambiance replete with comfortable furniture, and top-notch customer service delivered by their baristas. Starbucks' lofty brand recognition has played a salient role towards helping the company transition into becoming a highly profit global brand through replicating and refining their successful business model when expanding into emerging foreign markets. Positive word of mouth from loyal Starbucks patrons through social media platforms has also attributed to Starbucks becoming a highly profitable brand in foreign countries. Starbucks has revolutionized the coffee industry. Direct competitors of Starbucks cannot compete with the convenience factor that Starbucks offers their consumers by having their coffee cafe placed in over 30,0000 locations worldwide, cannot come close to matching the level of positive brand recognition Starbucks has established on a global scale, and cannot win over loyal Starbucks' customers in the coffee market. Moreover, Starbucks offers their products in the grocery stores which further helps their brand gain more recognition, build more traction, and secure the lifetime values of more coffee drinkers. Ultimately, Starbucks efficaciously leveraged the power of globalization to become a behemoth of a global brand and could not be as profitable nor have grown as rapidly as a multibillion dollar leading international coffee chain if they did not expand beyond the United States. Ultimately, embracing the globalization has not only allowed Starbucks to dominate a preponderance of foreign coffee markets, but has also allowed Starbucks to attain an unprecedented level of profitability, brand growth, brand recognition, brand equity, and brand loyalty by capitalizing on lucrative global expansion opportunities

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