18 March 2010
Starbucks Global Expansion Strategy with a Focus on China.
Who doesn’t like great tasting Coffee? One must contend that when it comes to a good cup of coffee, Starbucks has it figure out. The company has come a long way from when it was first founded in Seattle, Washington in 1971. Starbucks vision to become a global player in the coffee business has been at its forefront. The company went public in 1992 and hasn’t looked back since. It seems that any where you go; you are a few minutes away from a Starbucks. The company aggressively campaign to become the coffee leader in the United States. It’s not hard to imagine that Company executives believed in market saturation in order to dominate the market place. Now, there is a much need for Starbucks to span outside the United States and it is looking into global markets to keep its expansion plans. The best choice is the overpopulated country of China.
China seems to be a hot destination for many U.S. based businesses. Starbucks sees the vision of huge profits if it becomes successful in penetrating the Chinese market. When Starbucks looks at China as a new venture, it has to think of many different variables. The Chinese government can be a very difficult partner. The Chinese culture is much different from the Western culture Starbucks officials are used to. The geographic barriers that it faces must be studied as well. Aneki.com lists China as the 4th largest country in the world (9,596,960sq km) with lots of its population located in remote rural areas. However, China being the most heavily populated country in the world makes it a very attractive venture for any company looking to expand. 2
The Chinese Government plays a huge role on how Starbucks expands in China. Contrary to the Capitalists ways in Democratic United States, the...