Case Study Starbuckss Success - 1571 Words

Overview Of The Firm Starbucks was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl in Seattle, Washington on March 30, 1971. To help build their shop, Seigl went to California to learn from a coffee legend Alfred Peet, his â€Å"approach to coffee beans became the cornerstone for Starbucks s reputation: high-grade arabica beans, roasted to a dark extreme by a trained perfectionist roaster† (Business Insights) After a few years the corporation went public, Starbucks was experiencing rapid growth and success in their industry. In 1993, the chain had 275 stores and 425 in 1994. In addition to their success, they announced a partnership with Pepsi-Cola in 1995 to develop new ready-to-drink coffee beverages; this was the birth of Frappucino†¦show more content†¦Latin America is composed of 23 countries. The most influential country during the early 2000’s was Mexico, followed by Argentina and Brazil. Starbucks took in account the economic changes that Mexico was doing with the help of the World Trade Organization. Starbucks saw potential profit with this possible market penetration. Not only that but shipping of any supplies between the Host Country (Mexico) and the Home Country (United States) was going to be cost effective and fast due to the distance. Challenges and/or Barriers Economic Through out the past 7 years, Mexico’s economy has been slowly improving. When you go to Mexico you can see bigger shopping malls, spas, American food chains, and exclusive restaurants. This is due to an increase of the middle class. Currently in 2016, Mexico’s GDP is $2.1 trillion, this is 2.1% growth compared to last year. This means $17,881 per capita. Mexico has lowered tariff and non-tariff barriers through trade agreements. Oil and gas reserves are owned by the government, but the energy sector is being private. The financial sector has become more competitive and open in spite of the challenging global environment. Banking system remains stable, and foreign participation has grown rapidly due to the growth in their economy Starbucks’ first Latin America location opened in Mexico City (Capital of Mexico), 2002. During this time, Mexico’s economy was going