Singapore was chosen by Starbucks as the main business center in Asia. It is announced that “Singapore is constantly looking for new products and new markets to drive its export-led economy” (Starbucks Coffee, 2005). The second reason is that Singapore is the international trade and commerce center with an excellent financial and communication infrastructures, which will help Starbucks to penetrate into the Asian market and maintain a strong brand image. In addition, Singapore is the most Europeanized center in Asia where coffee is viewed as a “beverage instead of a drink” (Starbucks Coffee, 2005).
Socialization, and influences that shape social behavior in particular social settings determine Starbucks Coffee orientations. To be socially responsible Starbucks uses different styles o organization behavior and different patterns of organizational structure, as well as variations of influence in the business environment. Starbucks proposes to its clients' exceptional services and atmosphere in its coffee bars and shops, providing a high level of customer loyalty.
There are some arguments against Starbucks penetration into the Asian market which include existing competitors, namely Suntec Dome Holdings and Sinelli. These companies have already created a strong brand image in Singapore and planned further penetration into Asian markets of China, Indonesia, Hong-Kong, Malaysia. As the report says these companies target: “a broader market segment with a lower budget range” (Starbucks Coffee, 2005). ...Show more