Jan 16, 2018

Why was it beneficial to use a joint venture in this case?

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1. Please analyze Starbucks with the two bargaining powers in Porter’s model of five forces of competition.

2. Starbucks and Sazaby signed a joint venture agreementfor Starbucks Coffee Japan.

a) What is typical for a joint venture?

b) Why was it beneficial to use a joint venture in this case?

c) Please describe why the expansion mode of licensing may be less ideal in this case. (25%)

3. Starbucks owns the Seattle’s Best Coffee brand and the latter franchises its stores. What does the franchisor give in this case to the franchisee and vice versa? (35%)

Franchisor gives to franchisee

Franchisee gives to franchisor

Equipment and Supplies

Expanding market

Employee Training

Low Risk

Intact Knowledge

Competitive advantage in local market

Business Model

Brand Marketing

Brand Name

Maintaining core values.

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