Being the worlds largest coffee company both in terms of sales and market share, Starbucks Coffee Company (hereinafter referred to as Starbucks) has managed to position itself as a distinguished and successful provider of high-quality coffee products, attracting millions of customers worldwide. The company, which was founded in Seattle in 1971 as a mere roaster and retailer of whole bean and ground coffee, tea, and spices, first entered the market as a seller of brewed coffee in 1985, when Howard Schulz, former employee, and current CEO, realized the huge potential of selling brewed specialty coffee. After opening eleven stores in the Seattle area, Starbucks began its expansion first in the northern United States and then across the rest of the country. Global expansion did not occur until Starbucks initial public offering (IPO) in 1992, further highlighting Mr. Schulzs intention to turn Starbucks into a truly global company. Its first international store opened in Tokyo in 1996, followed by Singapore and the Philippines. In the early 2000s Starbucks expanded into other key markets, covering most Asian countries and also moving to European, Italian and Latin-American markets. Today Starbucks has 16,635 stores in 50 countries of which 8832 are wholly owned stores and 7803 are licensed stores. B
y forming alliances with major coffee producers and retailers as well as acquiring emerging competitors, Starbucks has managed to extend and eventually consolidate its market position in recent years. The company is also following hot trends in the coffee market, such as single-serve coffee or the delivery of ready-to-be-served coffee to luxury hotel rooms. Moreover, Starbucks has realized that emerging markets, most prominently China, have huge untapped potentials that need to be exploited if the company wants to gain and maintain a competitive edge over competitors. The aggressive expansion strategy that Starbucks is currently pursuing in China can thus be understood as a clear message to competitors that it will not render the number one spot in the global coffee market without a fight. In fact, Starbucks future could not look any brighter. With third quarter (2011) sales figures exceeding the five percent threshold in both the USA and internationally, and new shops opening in China almost on a daily basis, the company seems to have chosen the correct strategic path for the upcoming years. In the words of Starbucks CEO Howard Schulz, Starbucks has never been healthier, more connected to customers and partners, or better positioned to go after tremendous business opportunities that lie ahead.