Starbucks established in 1985 under Howard Schultz in United States has become one of the renowned multinational companies in the world with branches in around 50 nations (Starbucks,2010a).It has now become the number one speciality coffee retailer in the world. As a part of…
China has been one of the rapidly growing economies in the world with high growth opportunities. Since 1979, China has opened up the economy gradually to foreign business (UN, 2009). In December 2001, China became formally a member of World Trade Organization (WTO), which provided further incentives for increased integration with the world economy. The first Starbucks shop was opened in 1999 in Beijing and now it has 190 shops all over the mainland China. Initially, China was mainly a tea consuming nation with only very small coffee market while now reports show that the coffee consumers are rapidly growing (Starbucks, 2008). According to the latest reports, Starbucks has decided to setup China as its largest market outside North America and is now in the process of careful planning for that(The Wall street Journal,2010). In spite of the reports showing the company facing competitive pressures in several other countries, the success of the company in Chinese market deserves special mention(ICMR,2009).In this context an analysis on the key success factors of Starbucks in Chin market, its main challenges and opportunities has important policy implications.
The various external factors influencing the performance of an organization are evaluated through external analysis. Both the positive and negative trends influencing a company’s performance are evaluated through this process. The positive trends are opportunities to a company and the negative trends are the threats faced by the company. This analysis is very relevant for assessing a company’s present situation so that the company can develop new strategies or change existing strategies by making use of the opportunities and threats to the company (Coulter, 2005). This according to Coulter (2005), there are both specific environment, which influence directly the company’s strategic decision and general ...
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The company rose to become the largest coffeehouse organization in the world. At present, the company operates in over 62 countries with more than 21,000 stores. Major Starbucks’ consumers come from United States, Canada, Japan, China, United Kingdom as well as other nations such as, South Korea, Mexico, Taiwan, Philippines, Turkey, Thailand and Germany.
Its importance is highlighted by the statement of Howard Schultz when he says, "No market to date potentially has the opportunities for us that China ultimately will." Schultz also underlines the fact that Starbucks has moved China up to the No. 1 priority.
This essay mainly focuses on the evaluation of the effectiveness of the business processes, that Starbucks company utilizes in the globalized world of today. To increase its market share in China, Starbucks needs to have a detailed customer profile depending on the targeted segments, as a part of its long term strategy in this market.
As the company opts to "be innovative and take risks," it puts itself in a position where it needs to constantly examine the efficiency of its marketing mix. In marketing terms, the problem of Starbucks can be simply stated as: How can Starbucks modify it's the products that it offers (product), enhance the ambiance of its outlets (place), improve its promotional strategies (promotion), and tailor a more complementary pricing system (price).
This way, I save more time because I am able to do many things while waiting for my coffee and have a wide array of flavors to choose from.
I am not advertising Starbucks. In fact, I am puzzled with how this coffee company attained such a huge international success.
It should be done by following the business concepts in the local region. The changes in business principle are favourable only after getting a firm position in the market. In order to get strong acceptance in the industry the basic culture of the customers has to be
The company has a global reputation because of its unique experience defined by an outstanding atmosphere, exemplary customer service, and a diverse range of products. In the recent past, the company has expanded both locally and globally and now has branches in