2
Starbucks Company offers its customers a unique range of coffee drinks in different styles. Strategies are vital for any business to achieve its goals. Hence, any growth opportunity presenting itself is analyzed thoroughly by the business and taken up to fit in the company’s growth objectives. As Starbucks was started, the founder had a dream and might not have planned for global expansion, and when the opportunity came for the business, it jumped to the idea. Since Starbucks entered the global market, it has been successful because it has maintained its branding across the world. Multinational companies are growing through foreign investments of opening outlets and investing in foreign markets, and since Starbucks has been on it, it is okay to continue with it (Vattikoti & Razak, 2018). The company has stuck to its company vision, which has helped it successfully maintain its brand image. The company has been able to offer honest, quality service to the consumers in all the parts of the world it operates, and that has helped it build its image and stay successful in the market. Entering the global market for Starbucks was not all easy as the company encountered some controllable and uncontrollable elements, but through effective strategies, the company has been able to succeed globally. The paper discusses a country in which Starbucks can expand its business.
Kenya in Africa is a potential country Starbucks can expand its business to. International business should provide the potential for growth of the business, and Kenya can provide Starbucks with that opportunity. Starbucks has never ventured into its business in Kenya, and therefore the business would be well received by the potential consumers. Starbucks is financially sound and can handle any investments as foreign investments is a way for the company to grow (Clements, 2019). There are several reasons why Kenya is a good market for Starbucks.
Most population in Kenya is the youth, with around 75% of the population being young people below the age of 35. Most coffee consumers in Kenya are youths who are working and out for meetings, and therefore opening an outlet in Kenya would be great. With the country’s most population being youth, the company can focus on appealing and marketing its products to the Kenyan youth, and that would ensure the business does well. Kenya is also a coffee producer, and Starbucks’ main product being coffee, will give it an opportunity to obtain cheap coffer from the Kenyan market. Starbucks is already investing in a project of providing coffee trees to farmers, and that shows the company is committed to ensuring a long-term supply of coffee, and with the same note, the company can invest and succeed in a country already producing coffee (Starbucks, 2021). With an outlet in the country, the company will be assured of a cheap supply of coffee and will continue with its program of supporting coffee farmers. Kenya has a huge pool of workers, both intelligent and experienced, and that will ensure that Starbucks will not struggle with finding reliable workers for its business. The country’s tourism nature has made it possible for restaurant and hotel workers to be available as many have studied the courses because they understand that the country is growing in the tourism and food supply, which go hand in hand.
Kenya is the center of east and central Africa, and that means it is a growing country economically. With a well-built industrial foundation, it is a critical financial sector for east Africa and hence gives multinational businesses over 385 million customers from the east Africa market and beyond. With a growing economy, the country has the potential to grow as well. The country’s economy is not well established, but the country has the potential to grow, and that can be seen through how the country has been open to foreign businesses investing in the country. The people in the country have open to growth, and with that mentality, then they will be able to accept the business, and Starbucks will be in a better position. Kenya’s food market is a ready market, and in the same way, foreign companies such as domino’s pizza and KFC are doing great in the Kenyan market. Kenyans are welcoming to new products, and Starbucks is bringing its products and maintaining the quality and if need be, introducing other products in line with the country’s culture will ensure that the consumers stay loyal and they will keep coming back.
Kenya is a tourism destination country, with many of the visitors being foreigners who flock to the country to enjoy the good weather and the various attractions in the country. The large number of foreigners visiting the country is a catch for Starbucks as the foreigners who are used to enjoying Starbucks coffee and products will be able to enjoy the same products in a foreign country without having to worry about quality and service. Many foreigners have already settled in Kenya for various reasons, such as work for the expatriates make a perfect market for Starbucks coffee. There are other global organizations with foreign workers in Kenya who might have been used to Starbucks coffee back home and might be struggling with other coffee types and having a Starbucks outlet in Kenya will cater to their needs meaning the company will not suffer from a lack of consumers.
The Kenyan movement supports foreign investments. The government has taken initiates and applied policies that support foreign investments in the country. The move has seen the country move from the World Bank doing index and was listed position 56 in the world in 2020, marking an increase from its 61st position the previous year (Doing Business. Org, 2021). The country has improved its present networks to make it easy for foreign businesses to invest in Kenya by making the electricity supply better and doing reforms such as solving economic failure, getting credit, registering lands, and saving small investments (Abdin, 2019). The country is strategically placed with access to the sea, making it easy to import items from other countries to Kenya if needed by Starbucks for its business, such as infrastructure and machinery. The country has middle-class employers and has a developing service market, and that is an opportunity for a foreign business. Kenya is a peaceful country that has maintained its ability and strength since its independence, and hence the combined strength of the country and that of the people make it easy for foreign investments.
As a business that has already grown internationally, Starbucks understands the dynamics of the international market and what they need to do and what not to do. With this in mind, the business can evaluate its goals and strategies to make sure that it would do well in Kenya. Kenya is a growing country, and the government has made it easy for foreign businesses to venture into the market through policies that encourage foreign investment. The readily available coffee from the farmers will ensure the company gets a constant supply of quality coffee to maintain the quality offered to consumers. The considered factors make Kenya appealing as an investment destination that Starbucks should consider.
References
Abdin, M. D. (2019). Ease of Doing Business Index. Ease of Doing Business Index (March 20, 2019).
Clements, M. (2019). Strategic Audit: Starbucks.
Doing Business. Org. (2021). Ease of Doing Business in Kenya. Retrieved from https://www.doingbusiness.org/en/data/exploreeconomies/kenya
Starbucks. (2021). Farming Communities. Retrieved from https://www.starbucks.com/responsibility/community/farmer-support
Vattikoti, K., & Razak, A. (2018). An empirical study on strategic alliances of multinational companies in the modern global era-a select case study. Academy of Strategic Management Journal, 17(4), 1-13.
