Question

1.) In the United States, nearly two thirds of Starbucks outlets are company owned; the remaining one-third is operated by licensees. Outside the United States, the proportions are reversed: About two-thirds are run by licensees or partnerships in which Starbucks has equity staked. What is the explanation for two different market expansion strategies?

Answer 1

In United States, the organization has its own outlets on the grounds that the organization S-B has all the assets it requires to open its own stores.

• It just licenses a little segment of its business in U.S and that excessively just to those areas where store network is hard to keep up.
• The organization can without much of a stretch work through its own stores in America and would not need to fear about any opposition from licensees.

Organization S-B works in remote markets significantly through permitting on the grounds that purchasing its own stores in different nations would be expensive and dangerous.

• The organization likewise would not need to stress over the skill of the nearby markets.
• Despite the fact that this system gives lesser returns yet at the same time it is an a lot more secure methodology in contrast with direct venture.