Starbucks' Reputational Risk in Italy Starbucks has built one of the most respected and well-known consumer brands globally through consistently high standards of execution, a focus one exceptional customer experiences, and a belief that consumers needed a third place, away from work and home to relax. These insights and more from the article Grounds Zero: A Starbucks-Free Italy (Faris, 2012) is the basis of this analysis. Starbucks' many challenges in addressing their reputational risk in Italy, the breadth and diversity of competitors, the drastic differences in coffee taste preferences present formidable challenges for their growth in this nation. Ironically it was in Milan, Italy where Starbucks CEO originally got the idea for the Starbucks experience of being in a cafe, not a traditional American coffee shop (Faris, 2012). To succeed in this market however Starbucks will need to be more effective at managing their competitive threats, capturing opportunities, and managing the differences...
Starbuck's focus on being a 3rd place isn't that aligned with the Italian mindset of how coffee is purchased, consumed and the experience of being in a store. This cultural difference is significant enough to lead to the many competitors Starbuck's has in Italy choosing to further go in the direction of local customer preferences instead of emulation them, a global brand.
Starbucks coffee company is a leading roaster and retailer of specialty coffees. It has its base in Seattle and has many stores within the U.S. And internationally. The objective of starbucks is the establishment of Starbucks as the most recognized and respected brand of coffee in the world. For this goal to be achieved, starbucks continues to expand its retail operations by selectively pursuing other opportunities so that they can
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