STARBUCKS ENTERTAINMENT 4
StarbucksEntertainment (SE) is the entertainment division of Starbucks, whichfocuses on the production, marketing and distribution of music, booksand films. The strategy for is to increasethe sales and profits for the company by opening more businessenterprises in countries where the company has existing stores. Thecountry selected for this strategy is South Africa, as a majorAfrican market.
Toincrease sales and profit in the international entertainmentbusiness, should increase its visibilitythrough aggressive marketing. As a new business division, the companyshould create awareness of the company and the services the firmoffers rather than ride on the Starbucks brand. This is because theStarbucks brand is known with coffee, and not entertainment. If welldone, aggressive marketing will help gainmarket advantage of the Starbucks brand name. In addition, the firmshould establish more market presence in different countries. Byestablishing business in South Africa, the company will be looking toexpand into the African market. This will give the firm an expansivemarket worldwide which will increase the sales and profits of thecompany.
Toincrease sales and profit, the company should also focus on theproducts that are highly consumable in different markets. Forinstance, in South Africa, the company should focus on musicproduction as the primary product. However, the company should alsofocus on film production because the industry is not fully developedin South Africa to sell globally. This will increase its competitiveedge and market dominance.
However,the company should manage cultural, legal and political issues thataffect business performance. The cultural practices and believes thatpeople have in relation to the role of different gender is a factorthat affects the type of films that people view. Secondly, religionis a cultural factor that affects the type of films and music thatpeople of different cultures listen to. Therefore, the contents ofmusic and films should consider the two cultural factors, so that thefirm does not lose an audience, and so paint its corporate imagenegatively.
Thesupport of the government in protecting copyright is an importantpolitical factor that influences the marketing of entertainmentproducts. Secondly, the political stability of a country affects thecompany due to the safety and peace of the investments in thecountry. Therefore, should consider the twopolitical aspects that impact on the business environment. Inaddition, the legal requirements to start the business affect thesimplicity of opening business ventures in new countries (Worthington& Britton, 2006). Secondly, the strength of the country’s lawsto protect intellectual property affects the performance of thecompany in distributing the entertainment products. Therefore, should consider the two illegal environmentalfactors.
Therecommended country, South Africa is the best option for Starbucksbecause the firm has established stores in only three Africancountries. The reason for selecting South Africa is because it has aStarbucks store and is one of the biggest economies in Africa. Forthe company to expand its market in Africa, it must use one casecountry as an entry point, and South Africa is the best country tostart the African market with. The company will be looking to expandits business venture in other African countries through South Africa.Therefore, the strategy of the company will be long term, with SouthAfrica being just a medium term goal of establishing a businesspresence for .
Worthington,I., & Britton, C. (2006). TheBusiness Environment (5thEd). Harlow: Prentice Hall