History and Progress of the Internationalization of Starbucks in China

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History and Progress 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 deliberately began to bridge the gap between the tea drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local tea-based ingredients. Competitive internationalization strategy. The overarching competitive strategy was to create an aspirational brand. Prospective Starbucks customers in China could look forward to what Starbucks refers to as "The Third Place" experience. The Starbucks experience conveys status that is highly appealing to those aspiring to Western standards or to climbing the ladder in their own culture. Maintaining brand consistency. When Starbucks opens a new store in an emerging market like China, the best baristas are sent for the launch and to conduct training of the baristas who will carry on when once the launch has completed. Emerging Market Political Environment Peoples' Republic of China (PRC) capitalism. The middle class in China has rapidly accepted Western standards as an

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