Question

Coffee consumption is growing in South Africa, and the introduction of Starbucks to South African consumers means that hundreds of new customers can now enjoy Starbucks 100% Arabica coffee, ethically sourced, and hand-crafted into a wide range of unique beverages.

Starbucks opened its doors for the first time in Southern Africa in April 2016. Their first two stores are located in the cosmopolitan Rosebank district and the Mall of Africa, Midrand. These two stores are the start of a journey to bring the Starbucks experience to the rest of South Africa. What service location strategies should Starbucks use to expand their business into Nigeria and Kenya?

Answer 1

Service locations strategies refers to the process of setting strategies by the business before deciding on the new location to open up the new stores. Starbucks should also follow following strategies to expand in Nigeria and Kenya:

• The company should consider its own goals and objectives to be achieved and then decide on the location.
• The company should keep in mind the market and its type to be covered, thereafter making expansion decision.
• The research should be conducted by the R&D department about the demographic profile of customers in the selected area.
• Also, the tastes and preferences of the customers should be considered in order to make sure that correct market has been targeted.
• Before actually starting the business in Kenya and Nigeria, Starbucks should try to make the customers aware about their arrival so that the preferences and view- points of the customers can be recorded beforehand.