Starbucks Internationalization in China

Introduction

Starbucks is an international coffee and coffeehouse chain based in Seattle Washington. Starbucks is the premier roaster and retailer of specialty coffee in the world, with over 17,000 stores in 50 countries, including over 11,000 in the United States, nearly 1,000 in Canada and more than 750 in China.

Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed retail. Starbucks produces and sells a variety of ready-to-drink beverages.

The main goal of Starbucks is quality-for all of their coffee to be grown under the highest standards, using ethical trading and responsible growing practice, and to bring out the balance and rich flavor of the beans through the signature Starbucks Roast.

Howard Schultz has always been keen on expanding his company. His main goal was to expand in the U.S. market, but it has been replaced with the global one; and one of the biggest stops is China. Where the first store was opened in 1989 in Taipei, Taiwan.

In the following I will describe the Starbucks entry strategy in the Chinese market. I will analyze the reason why Starbucks chose this market, timing entry and the scale of entry. Also I will write about how Starbucks used the marketing mix, while being affected by the specific market conditions. I will focus on product, price, promotion and place elements, which constitutes a firms marketing mix.

The Starbucks entry strategy in the Chinese market

The Chinese market is considered to be the fastest growing and the most powerful market in the world in terms of its gigantic population and the rising economic growth. Also,...