The Report of Starbucks Development in Asia Pacific

2710 WordsMar 4, 201111 Pages
Introduction For many multinational companies, they have begun global expansion. The Asia Pacific region is a potential market to get more profits. Starbucks is one of the international companies, who expand the market in the AP. This report will introduce Starbucks firstly, and then articulate the strategies of the company and use SWOT to analyze the internal and external environments. Some recommendations for Starbucks managers are given according these analyses. company profile—Starbucks Starbucks coffee company was founded in 1971, opening its first store in Seattle’s Pike Place Market selling coffee beans only. During this time most coffee was purchased in a can directly from supermarket shelves. Starbucks’ concept of selling…show more content…
Also, conducting business activities in AP markets, relationship-building is learned gradually. Through establishment of these relations as a source of learning, the firm’s ability of public relations can be enhanced. Organizational Ability of Starbucks Generally, this ability refers to how Starbucks organizes its operations in AP. Initially, Starbucks sets up stores through joint-venture partnership and licensing, which make it share investment costs and risks with partners, also Starbucks can gain more understandings of the local environment. During the development in China, in order to overcome the shortage of low-control and risk of losing brand image, Starbucks is now re-buying its stocks of each local partnership in Beijing, Shanghai and Guangzhou, also Shanghai is chosen for the location for Starbucks’ regional headquarter. Following, Starbucks establishes its wholly owned subsidiaries in Qingdao and Chongqing such secondary-ranking cities. On the other hand, the AP Starbucks maintains its fundamental organizational structure and control, but some corresponding changes and an AP perspective are needed to translate strategic decisions into practice (Lasserre & Schutte, 2006). Due to the significant conceptual and contextual differences, Starbucks need not only think differently, but also act differently to survive in this diverse region. In China, Starbucks are building a “third space” culture

More about The Report of Starbucks Development in Asia Pacific

Open Document