Starbucks prefers a corporate vertical marketing system (VMS) in the U.S., while internationally, the company opts for licensing agreements as a form of franchising service-sponsored franchise systems.
In the U.S., Starbucks maintains direct control over its brand, products, and customer experience by owning and operating most of its stores. This approach allows the company to ensure consistency and quality across all locations, aligning with its strong brand identity and commitment to customer service.
However, when it comes to international markets, Starbucks often engages in licensing agreements. This method allows the company to leverage local expertise and navigate regional market dynamics efficiently. By partnering with licensed operators who understand local consumer behaviors and preferences, Starbucks can expand its presence without bearing the full risk and investment of opening new stores. This dual strategy enables Starbucks to maintain its corporate strategy in familiar markets while adapting to diverse international environments.