Starbucks Entry to China

10685 WordsSep 15, 201043 Pages
The Center for Hospitality Research AT CORNELL UNIVERSITY Starbucks Entry into China Starbucks Coffee International, a subsidiary of Starbucks Coffee Company has recently celebrated its first step into Southern China opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong’s Maxim group, who together have already opened 32 Starbucks stores in Hong Kong between 2000 and 2002.1 At the opening Pedro Man, president of Starbucks Coffee Asia Pacific Ltd., the Asian division of Starbucks Coffee International said: "As we celebrate the opening of our first store in Southern China today, we mark yet another key milestone in the history and tradition of…show more content…
Schultz and Olsen were able to raise the $3.8 million and purchased Starbucks in August. They changed the name of all the stores to Starbucks because of the stronger brand name it had in Seattle and among mail order customers. Schultz had great plans for expansion Liddle, Alan. “Howard Schultz” Nation’s Restaurant News. January, 1995. p. 184 See note 9 11 Schultz, p. 81-86 12 Schultz, p. 82-83 13 Schultz, p. 84-89 9 10 Do not duplicate. Starbucks Entry Into China, 4 even at this time, promising investors that Starbucks would open 125 stores in five years.14 During the next five years Starbucks remained a privately held company and expanded its number of stores at a faster pace than planned. With a base of 11 stores in 1987, Starbucks opened 15 new stores in 1988 and 20 in 1989. Seeing that their targets were being met easily, they stepped up their expansion efforts and had 165 stores by 1992. Their expansion was limited to the Pacific Northwest, Chicago and parts of California. They practiced a strategy of market saturation and building up customer loyalty. This loyalty helped their mail order business, which reached many people who have tried Starbucks coffee but did not live near a retail store.15
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