Selling Water to the Fish. Can Starbucks Make Italians Buy Its Coffee?

Selling Water to the Fish. Can Starbucks Make Italians Buy Its Coffee?

When Starbucks didn’t manage to conquer Italian market, it received a lot of media coverage on the subject of how to do (and not) International expansion. It was all good until this year Seattle chain of coffee bars announced it will come back with revised marketing strategy. This is why we decided that this case study deserves to be in the spotlight of our blog. After all, we devoted huge chunk of the blog to analyzing international marketing mistakes and Starbucks surely did some. Let’s briefly recap some of them.

When in Rome..

It is well known fact […] Read more

Can’t Just Buy Your Way In – What Groupon Learned in China

Can’t Just Buy Your Way In – What Groupon Learned in China

Everyone likes a good deal, right? Nothing can compare to the when you buy a desired item with a 20% or more discount.If you are a company that helps people find the best deals available, it shouldn’t be a problem to attract users. This is how things looked on paper when Groupon decided to enter China, one of the up and coming and top ecommerce markets, in 2011.

[…] Read more

Best Buy said Bye to the UK. Why?

Best Buy said Bye to the UK. Why?

In our previous post we have discussed the fact that it can be sometimes challenging for Western companies to grasp Chinese cultural differences. These challenges are, however, not exclusive to China and can often arise even when you expand to a seemingly less mysterious country. This will be obvious after analyzing a story of an American electronics mega-store Best Buy and its failed attempt to enter the UK market.

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Coming to Asia: Wal-Mart’s Blunders in Japan

Coming to Asia: Wal-Mart’s Blunders in Japan

Wal-Mart, the second largest retailer in the world, entered Japan in 2002. It used its common foreign strategy of creating a joint venture by purchasing large stakes in local retailers and taking control of ownership by gradually increasing the investment. However, its standard approach has backfired as WAL MART did not take into account the specifics of the Japanese retail market.

What went wrong?
1. Japanese buy in small quantities

Contrary to the Americans, Japanese tend to buy goods in small quantities as they are not used to make weekly supplies. This trend can be partly explained by the high cost of real estate. […] Read more