Starbucks Entry to China - 10685 Words

The Center for Hospitality Research AT CORNELL UNIVERSITY Starbucks Entry into China Starbucks Coffee International, a subsidiary of Starbucks Coffee Company has recently celebrated its first step into Southern China opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong’s Maxim group, who together have already opened 32 Starbucks stores in Hong Kong between 2000 and 2002.1 At the opening Pedro Man, president of Starbucks Coffee Asia Pacific Ltd., the Asian division of Starbucks Coffee International said: As we celebrate the opening of our first store in Southern China today, we mark yet another key milestone in the history and tradition of†¦show more content†¦Schultz and Olsen were able to raise the $3.8 million and purchased Starbucks in August. They changed the name of all the stores to Starbucks because of the stronger brand name it had in Seattle and among mail order customers. Schultz had great plans for expansion Liddle, Alan. â€Å"Howard Schultz† Nation’s Restaurant News. January, 1995. p. 184 See note 9 11 Schultz, p. 81-86 12 Schultz, p. 82-83 13 Schultz, p. 84-89 9 10 Do not duplicate. Starbucks Entry Into China, 4 even at this time, promising investors that Starbucks would open 125 stores in five years.14 During the next five years Starbucks remained a privately held company and expanded its number of stores at a faster pace than planned. With a base of 11 stores in 1987, Starbucks opened 15 new stores in 1988 and 20 in 1989. Seeing that their targets were being met easily, they stepped up their expansion efforts and had 165 stores by 1992. Their expansion was limited to the Pacific Northwest, Chicago and parts of California. They practiced a strategy of market saturation and building up customer loyalty. This loyalty helped their mail order business, which reached many people who have tried Starbucks coffee but did not live near a retail store.15Show MoreRelatedStarbucks Entry to China10678 Words   |  43 PagesCORNELL UNIVERSITY Starbucks Entry into China Starbucks Coffee International, a subsidiary of Starbucks Coffee Company has recently celebrated its first step into Southern China opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong’s Maxim group, who together have already opened 32 Starbucks stores in Hong Kong between 2000 and 2002.1 At the opening Pedro Man, president of Starbucks Coffee Asia PacificRead MoreThe Market Entry of Starbucks into China898 Words   |  4 PagesThe final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the companys market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This follow ed the acquisition of greater knowledgeRead MoreInternational Marketing of Starbucks1184 Words   |  5 PagesStarbucks International Marketing International marketing has become more significant on business world because it lets the companies to be able to extend their markets to increase profits. Hence, International marketing is the business activity including goods, services, and resources which occurs between two or more regions and countries. International entry strategy Entry to new markets in many countries is key factor that makes a firm be able to expand its business and target market to furtherRead MoreInternational Marketing Pl Marketing Strategy, And The Factors That Influence It Goes Globally1339 Words   |  6 PagesPartnered with Starbucks help with Teavana offer Lattes, iced teas, brewed teas and loose leaf teas. Through this way Teavanas has introduced thousands customers to new experiences in tea. In this case, in order to launch in International market, Teavana sales growing stable and accepted a $620 million offer from Starbucks. After researches the company found that own growing demand for premium teas in the International market, so It had to make a plan for going global, especially in China. ExecutiveRead MoreThe Global Expansion Strategy of Starbucks700 Words   |  3 PagesStarbucks Global Expansion Strategy The economic recession has hit many in the United States hard. This has created a situation where many companies are forced to scale back domestic expansion plans because of lower consumer spending. However, the same is not necessarily true for other international markets. In fact, Starbucks is planning an aggressive expansion plan in China for physical expansion, while it is downsizing retail locations in the U.S. Thus, Starbucks is continuing to show signsRead MoreHistory and Progress of the Internationalization of Starbucks in China908 Words   |  4 PagesProgress of Starbucks Internationalization in China Emerging Market Cultural Environment Initial entry strategies. Starbucks articulated an entry strategy that was designed to be as inoffensive to the Chinese culture as possible. Instead of taking the conventional approach with advertising and promotions which could have been seen by potential Chinese consumers as attacking their culture of drinking tea they positioned stores in high-traffic and high visibility locations. Moreover, Starbucks very deliberatelyRead MoreStarbucks Coffee s Vision Of Starbucks1282 Words   |  6 PagesGordon Bowker established Starbucks Coffee Company in 1971, their vision of Starbucks was that of a local business specialising in â€Å"selling fresh roasted whole beans in ...specialty stores.† (Darguste et al., 2006 p.655). Fearing commoditization of the brand, the founders were opposed to the idea of broadening the appeal of Starbucks coffee. Howard Schultz, a marketer who eventually acquired Starbucks in 1987, made selling brewed coffee to a wider market the bedrock of Starbucks (Da rguste et al., 2006Read MoreStarbucks Coffee: Standardization and Adaptation Strategy Essay1598 Words   |  7 PagesStarbucks Coffee: Standardization and Adaptation Strategy Introduction Starbucks’ Business Concept and History When academics Jerry Baldwin, Zev Siegel, and Gordon Bowker established Starbucks Coffee Company in 1971, their vision of Starbucks was that of a local business specialising in â€Å"selling fresh roasted whole beans in ...specialty stores.† (Darguste et al., 2006 p.655). Fearing commoditization of the brand, the founders were opposed to the idea of broadening the appeal of StarbucksRead MoreThe Coffee Majors And By Starbucks920 Words   |  4 Pagesand by Starbucks. Describe main differences in their assumptions, mission, product/market scope, and sources of differentiation. The major companies that shared 60% of the coffee marketplace such as Maxwell House (owned by General Fords), Folgers (owned by Procter Gamble), and Nescafe (owned by Nestle) used different strategies than Starbucks. The majors approached the coffee marketplace by providing products made from cheap Robusta beans that were sold in cans. On the other side, Starbucks introducedRead MoreMarket Entry Strategy : Starbuckss Foreign Market Entry Strategy1063 Words   |  5 PagesCurrently, Starbucks foreign market entry strategy combined with their level of quality is suitable for markets worldwide. With Starbuck’s financial release open for the public to view on their website, they proudly state their quarter store sales are up 3% globally, up 3% in the United States and up 8% in China. (www.starbucks.com). Starbucks is proving to be a main contender in the worldwide coffee market which is evident with the opening of over 2,600 stores in China. By targeting the most populated