05 Jun PLEASE ANALYZE STARBUCKS WITH THE TWO BARGAINING POWERS IN PORTER’S MODEL OF FIVE FORCES OF COMPETITION. 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%) 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%)
- Please analyze Starbucks with the two bargaining powers in Porter’s model of five forces of competition.
- 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%)
- 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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