Starbucks Global Expansion Strategy, with a focus on China.

1253 WordsJan 8, 20086 Pages
Starbuck 's has become a staple of American culture and for the most part, if you are in your 20 's, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so "wake up and smell the coffee"! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz 's vision and mission statement is shared by everyone in the company!An excerpt from the London Financial Times published in February 2006 states the following in regards to Starbucks entering the Chinese market; "Mr Schultz said the company was…show more content…
With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language. How does this translate to operations in China? Simply that one shared vision aimed at a common goal and "making the customer number one" works globally. Starbuck 's identified that the younger generation in China was just as prone to converge in groups at coffee shops as their peers in the US. They also noted that many Chinese were bringing their beverage experiences back to China after visiting the US. Starbuck 's decided they would be the pioneers in China, just as they had been in Japan and many other countries. Upon entrance into China in 1999, the company was prohibited from owning its stores outright and entirely. They were forced to settle for partners in China. This made it difficult to completely control the stores the way they could in the US because the partners did not share Starbuck 's vision. Then in 2004 Beijing lifted those restrictions in return for entry into the World Trade Organization. Once allowed to do so, Starbuck 's began an aggressive campaign to buy back their stores from their partners. This would allow them to regain control of how each store operates. It allowed them to train their employees in China the same

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