The Secret of Starbucks’ Success in China
Article Review and Analysis
----The Secret of Starbucks’ Success in China
The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004).
Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market expanding, for example, the culture conflict between Starbucks coffee culture and Chinese tea culture.
Firstly, let’s talk about the SWOT analysis. Strength comes first. Like it tells in the article, China now has a rapid developmental economy, personal income and living standards have been improved, therefore, the demand for consumption also increases, which aspires to the western culture and the elegant life style. Such existing condition is strength for
----The Secret of Starbucks’ Success in China
The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004).
Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market expanding, for example, the culture conflict between Starbucks coffee culture and Chinese tea culture.
Firstly, let’s talk about the SWOT analysis. Strength comes first. Like it tells in the article, China now has a rapid developmental economy, personal income and living standards have been improved, therefore, the demand for consumption also increases, which aspires to the western culture and the elegant life style. Such existing condition is strength for
References: Isidro, I. (2004). Learning from Starbucks: 10 lessons for small businesses [Electronic version]. Power Home Biz. Retrieved online: http://www.powerhomebiz.com/vol144/starbucks.htm Guang, Chen. (2011). The Secret of Starbucks’ Success in China. [J] Beijing: Operation Management Public.