Starbucks In China Case Study

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Expansion in the international space is very crucial for Starbucks to continue the trend of record breaking and profits. If there is one company that should have gone wrong in China, it would be Starbucks. China has thousands of years of history drinking tea. No one could have thought that coffee would bring such a huge influence to the Chinese modern society. When the Starbucks company entered China in 1999, there were many criticism about whether this was a good decision to make. Back around that time, it seemed impossible to convince Chinese people to change that culture from tea to this western popular drink. However Starbucks didn’t let the criticism stop it. They did a market study and found out that there was an opportunity to introduce …show more content…
It did not use any advertising or promotions at all, because they think that could be very easily considered as a threat to their Chinese tea-drinking culture. Instead, it chose high-visibility and high traffic places to set up its brand image. The next thing Starbucks did was to focus its target on the tea-drinking consumers by introducing to them beverages that contains green tea as one of the major ingredients. This strategy was very effective and developed a taste for Starbuck’s coffee which leads to its success in China. However Chief Financial Officer of Starbucks Troy Alstead said, "We continue to struggle from macro challenges in Europe. This was true in the first quarter, it was profoundly true in the second quarter, and it 's even more than expected in the third quarter," This is not surprising because Starbucks was built on the premise of bringing the European coffee house to Americans. Why would they (Europeans) want a large corporate knockoff of what they already have? Even though Starbucks is considered a successful business company, there are still disadvantages to the …show more content…
Being a Starbucks partner means more than just a job, more than just an employee. It means there will be more opportunities that lie ahead. There are opportunities to grow as a person, in the career itself, and in the community. Being a partner with Starbucks can connect to something bigger, every year there will be community service teams go out and partner up with other organizations. So it is a good chance to be know and to get names out. Furthermore, there are countless of discounts and beneficial plans for Starbucks employees. It is a very good corporation to work

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