Drinking coffee is a social event, not the Starbucks idea of 'coffee to go'.
This is the same case in Italy, where there are literally dozens of traditional ways of making coffee. It is difficult to impose on such mature markets that have developed, during history, their own ways of attending to the coffee drinking phenomenon. It is by no surprise that the only place in Europe where Starbucks truly caught on was Great Britain, another traditionally tea-drinking country.
If we look at these risks, we can draw the conclusion that this rate of expansion on markets which are not as absorbent as others can have dramatic consequences for Starbucks. Any financial losses that might occur in these markets will have to be multiplied with the total number of stores that were actually opened. In this sense, a more cautious approach is much more recommended, with simple experimental store openings on different difficult markets, to simply see how the market is likely to react.
On the other hand, more and more we see Starbucks implementing traditional ways of drinking coffee. In Vienna, for example, the customers can actually sit at a table and enjoy the coffee the traditional European way. This increases the chances of stores such as this being successful on the European market.
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Starbucks Innovation Competencies Last year, I wrote to you that the company's improved operational foundation, invigorated innovative muscle, and heightened customer relevance presented us with an opportunity to build a different kind of organization. One that would leverage and extend our strengths both inside and outside our stores. I am pleased to report that in fiscal 2011 we delivered. Howard Schultz, Starbucks Chair, FY2011 Annual Report -- Welcoming Message Starbucks is often thought
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