Market Entry Options Adopted By Starbucks

2133 Words Dec 8th, 2016 9 Pages
Market Entry Strategy
Purpose: To evaluate the various market entry options adopted by Starbucks to enter China and their initial marketing strategy to promote Starbuck’s in China. These will provide insights into how critical market entry can be to the future success of the company in a new market.
Analysis: Starbucks’s international expansion strategy is to use, licensing or joint-venture partnerships to enter new markets. Starbuck uses the local partners to negotiate local regulations and other country specific issues, which has made this company successful in expanding into foreign market.
In entering China, Starbuck looked for local partners and considering the complexity of Chinese market, they partnered with three regional partners. In the north, Starbucks entered a joint-venture with Beijing Mei Da coffee company. In the east, Starbucks partnered with the Taiwan-based Uni-President. In the south, Starbucks worked with Hong Kong-based Maxim’s Caterers. (Wang, 2012) For its first store in Beijing it worked with its partner Beijing Mei Da coffee company, which was previously the distribution agent for Starbuck’s wholesale operations. (AdvertisingAge, 1998) Working with local partnerships, provided Starbucks with access to local knowledge, and people. Which it used to structure Starbucks to appeal more to the Chinese customer.
The next step after establishing a partner was selecting a location. It is a critical step for Starbucks particularly because of its marketing…
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