Question

Many would argue that Starbucks coffee is expensive, and yet customers get “value” for their money. How do you think Starbucks has been able to transfer this business model and value proposition to international market

Answer 1

Starbucks has created an immense brand value, recognition and respect for the company through its various strategies. The ethical practices of the company have earned it the reputation of one of the most respected firms in the world. In addition, its treatment with customers, focus on creating a highly comfortable and homely environment, etc. have increased the brand value and customer loyalty of the firm. The immense brand recognition of Starbucks has made its entry into the international market easier. People in the international market look at Starbucks with respect and a highly favorable brand image and aspire to be associated with the brand. Such an aspiration of consumers has helped Starbucks transfer the business model and value proposition to international market.