Internalization Strategies of Starbucks

1727 Words7 Pages
History and Progress of Starbucks Internationalization in China Emerging Market Cultural Environment 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. Fowler, (2003) assert that in a bid to launch an aggressive expansion in the Chinese market, Starbucks was a ware of the nearly 5000 years of tea drinking culture and stepped in with a skillful marketing team and strategy to curve a niche for coffee. For instance in Shanghai along Nanjing Lu, Starbucks installed research units with hand held counting devices to monitor proapective customer (Fowler, 2003). Unlike in the United States where Starbucks would use computerized mapping databases to test the potential of a street corner, in China, that decision was based on various factors including analysis of traffic on the particular street, the buzz around the location as well as local construction or development savvy. There was a team established to seek potential "hot spots" based on the above mentioned factors in addition to searching paths that connect prospective customers to either their work places, residentials or recreational target areas. With this, Starbucks very deliberately began to bridge the gap
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