Starbucks Case

Key cultural factors Starbucks had to consider as it expanded into China.

Key cultural factors Starbucks had to consider before expanding to China was their different lifestyles and food that they eat. In America People usually run in Starbucks just to grab a quick beverage and snack that they can eat on the go. The study shows that only 10% of Americans actually sit down inside of Starbucks to enjoy their beverage with family and friends. Opposed to China, 90% of people who stop to get a beverage sit down and enjoy it with friends and family. The Starbucks in China are significantly larger in China because more people sit down inside their. Another cultural factor they had to consider is their diet. In China they don't eat coffee cakes, sausage and egg sandwiches, or cake pops. They decided to sell duck sandwiches and green tea cheesecake instead.

Key political and legal factors Starbucks had to consider

China is still a Communist country, with that being Starbucks found local partners who understood the changing political and business side of China. Starbucks took the intuitive of allowing local developers to use their brand and to create joint ventures. That is how Starbucks slowly worked its way into China's market.

Demographic factors that were important for Starbucks

Some important things Starbucks had to consider before moving into China was the people they were going to market their products too. After doing careful research they decided to market their brand towards the “Chuppies.” “Chuppies” are Chinese that range for the ages 20-40 years old.

Initial global-market strategy Starbucks employed

When Starbucks first started moving into China they allowed local developers to distribute their products which lead them to make a joint venture with local partners. In 2006, Starbucks decided to take control over all 60 of their stores. They bought out all of their partners and continued to grow as a company in China. As a result Starbucks is now...