Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Abstract
Starbucks, the multinational chain of gourmet coffee shops entered the number one coffee drinking country in Europe - Germany, through a joint venture with the German retail chain, KarstadtQuelle. It faced stiff competition from retailers who emulated Starbucks'' business model, often adding a local taste. Its German partner was battling its own poor financial performance because of sluggish consumer spending. Two years into its operation, KarstadtQuelle was reviewing the joint venture contract. The case study offers an insight into the various operational hurdles faced by Starbucks in Germany.
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Abstract
Starbucks, the multinational chain of gourmet coffee shops entered the number one coffee drinking country in Europe - Germany, through a joint venture with the German retail chain, KarstadtQuelle. It faced stiff competition from retailers who emulated Starbucks'' business model, often adding a local taste. Its German partner was battling its own poor financial performance because of sluggish consumer spending. Two years into its operation, KarstadtQuelle was reviewing the joint venture contract. The case study offers an insight into the various operational hurdles faced by Starbucks in Germany.