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Diageo Capital Structure

Essay by   •  March 22, 2012  •  Essay  •  389 Words (2 Pages)  •  1,835 Views

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Globalization has become a widespread phenomenon over the past twenty years in the sense that no one is surprised anymore to find Starbucks Coffee in the most remote places of the world, because this Corporation has already penetrated in the markets of more than 50 countries with its special taste and high quality products. Why this Corporation is going and selling its goods throughout the world. Actually, there are so many reasons: first one is Globalization, because competitors of this company use the globalization strategy in order to increase sales and introduce its brand name to the worldwide, another reason is decrease the competitor's risks by entering international markets and attracting more and more clients throughout the world.

Why Starbucks Corporation wants to go international markets because of having a ubiquitous image as one of the most respected brands of the world and easily penetrate any country's market and sell its products. The chairman of Starbucks Schultz had already said that in order to achieve growth, maintaining our leadership position, and ultimately, become one of the well known brands in the world; we should enter the markets of China, the Philippines, Malaysia, the U.K and most recently Spain and Germany. Why he had even at that time pursued of entering into international markets such as China, the U.K, Germany, Spain and others it was because, to sell more goods as past and obtain potential growth. How Schultz had done; by sharply increasing the sales after entered and set suitable positions and expended the business to overseas together with its brand name.

As for now, now also those ideas of Starbucks owner are true somehow, but at the moment this Corporation's brand name has already on the top, but still this Corporation is going international markets of different countries, in order to earn much and because of globalization; to easily compete with Starbucks rivals such as quick-service restaurants and specialty coffee shops. Actually, there are numerous competitors in the specialty coffee beverage business, but customers able to choose the best one among specialty coffee retailers primarily on the basis of product quality, service and convenience, as well as price. If Starbucks Corporation will keep entering international markets, it will easily compete with its rivals in any corner of the world and increase its annual income more than expected.

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