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Starbucks in China - Case Study Example

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One of the best-known tea and coffee sellers, Starbucks has been making plans to go global since there are many companies in the international scale that are cutting down in the plans of doing same. North America is one of the nations that has become a fan of Starbucks already…
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Starbucks in China Case Study
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Running Head: Starbucks in China Starbucks in China [Institute's One of the best-known tea and coffee sellers, Starbucks has been making plans to go global since there are many companies in the international scale that are cutting down in the plans of doing same. North America is one of the nations that has become a fan of Starbucks already. Regardless of currency units, borders and restrictions, Starbucks is a Seattle based coffee chain that has made plans to go beyond the borders. The expansion plan has been since the last two or three years and they have been a result of the best implemented strategies.
As the marketing rule goes, it has been known that the best of the market share can be achieved only if the organizations and firms go global. This can also be achieved by having risk taking minds behind the strategies. Starbucks has been planning to open around 1200 stores on an international scale this year alone (Fellner, 2008, p. 12).
Starbucks' Intercontinental Strategy
The main strategy that has been seen to be followed and been implemented by Starbucks includes the global level joint ventures and partnerships that Starbucks has with the other coffee chains all around the world. These are the ventures that allow the other companies to own and run coffee chains. The local partner of the country knows the best locations and can make aware of the local tax issues and customer demands, thus giving Starbucks a bit added customer appeal (Earnshaw, Graham et al., 2005, p. 33).
Starbucks in China
Starbucks has been seen to gain much popularity in China as compared to KFC and McDonalds. China has been embracing the idea of global trade and global business since many years and it has been seen that the foreign firms and organizations feel at home while they work in a foreign country, especially China.
One of the main strategies that has been implied by Starbucks is that it is aware that the Chinese people do not like coffee. Therefore, Starbucks plans to provide the Chinese with more kinds and varieties of tea. It is also known among strategy makers in Starbucks that coffee house and tea house culture is almost very similar (Ambler, Xi, and Witzel, 2008, p. 34).
Starbucks has made its way into China since 1999 by having joint ventures with the companies. As of these days equity ventures are to be made so as the coffee chains can be operated as a whole.
Defense of the trademark and IP in China has not been done by Starbucks through the typical Administration for Industry and Commerce (AIC) authorities but by making use of civil courts which have been seen to handle the cases in a better manner (Enz, 2009, p. 33).
Starbucks is aware of the fact that China is such a country where teahouse culture is in high rise as compared to coffee house culture and therefore by first introducing varieties of tea to the customers, Starbucks can make a strong customers base.
Ambler, Tim., Xi, Chao., and Witzel, Morgen. (2008). Doing Business in China. 3rd edition. Taylor & Francis.
Earnshaw, Graham et al., and Pennington, Michael. (2005). China Business Guide. SinoMedia (Holdings) Co. Ltd.
Enz, A. Cathy. (2009). Hospitality Strategic Management: Concepts and Cases. 2nd edition. John Wiley and Sons.
Fellner, Kim. (2008). Wrestling with Starbucks: Conscience, Capital, Cappuccino. Rutgers University Press. Read More
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