The Market Entry of Starbucks into China

898 Words4 Pages
The final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the company's market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This followed the acquisition of greater knowledge about Chinese business culture through outlets in Taiwan. The company initially used a licensing agreement to enter the Chinese market (Starbucks, 2010). Since that point in time, the company extended its presence in the Chinese market in 2000 with a different licensee partner in Shanghai. In 2002, a third partner was added to help Starbucks expand into Shenzhen, two years after entering the Hong Kong market. Using these three major markets as a base, the company expanded from Shenzhen to Guangzhou and from Shanghai to Ningbo, Nanjing, Suzhou, Wuxi and Changzhou. By 2005, the company was ready to open its first company-owned store, in Qingdao, an area of the country not overlapping with the existing licensee agreements. Over time, the company has increased its equity positions in some of the joint ventures, and it has also opened more company-owned stores, and even bought back some stores. This topic was chosen because of the wealth of material available on it. Starbucks is
Open Document