Internationalisation of Starbucks:

1
Internationalisation of Starbucks

• How does culture influence success?
• Group 1 Northern Europe

2
Northern Europe

• Starbucks is not yet present in the Northern
  European market because they first want to
  increase its market share in existing markets

3
Northern Europe

• The Scandinavians are the World Champions in
  drinking coffee
• Since the 17th century coffee is known in this
  region
• The market is dominated by high-quality Arabica
  coffee
• Coffee Shops need good quality in order to
  attract customers
• Thus, the Northern European market is a very
  demanding one

4
Norway

• Norway has the most developed market for coffee
  shops
• Starting with one shop in 1999, there are now
  more than 400 coffee bars, most of them in the
  typical US-design
• Oslo supposedly has a higher coffee shop density
  than Seattle
• Market is dominated by smaller coffee outlets
  rather than big companies

5
Sweden

• Swedish people drink three times as much as US
  consumers and four times as much as Italian
  people
• Number of coffee shops increases by nearly 30
  every year
• In Stockholm there are more than 70 coffee bars
  (without traditional coffee houses)
• Six coffee shop chains dominate the market, which
  are all similar to the Starbucks idea
• The price level is quite high

6
Sweden II

• Swedish people like to drink flavoured coffee,
  cold or warm
• During the nineties it became popular to visit
  coffee shops
• Students like to spend a lot of time in coffee
  houses
• It is inadequate to visit pubs during the day, so
  consumers like to meet in coffee shops
• For the younger, the traditional cafés are too
  boring

7
Finland

• Finland is probably the most difficult market for
  coffee shops
• People like coffee in its traditional form
  roasted but not decaffeinated and no espresso
• Thus, consumers will probably be reluctant to
  special coffee blends
• Market experts reckon that it will take long
  until coffee shops are established

8
Denmark

• In Denmark, there is a great variety of coffee
  shops
• Most of them are single stores
• Only the small chain Baresso is of national
  importance

9
Summary

• The Scandinavian market seems to be a promising
  one for Starbucks
• According to Starbucks, there is a potential for
  300 own coffee shops in Northern Europe
• Starbucks is already looking for partners to get
  into this market