Preview

Barriers Facing Starbucks in China as They Try to “Teach People to Change Their Conumption Habits from Tea and Instant Coffee

Satisfactory Essays
Open Document
Open Document
475 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Barriers Facing Starbucks in China as They Try to “Teach People to Change Their Conumption Habits from Tea and Instant Coffee
Starbucks' global corporate goal is to become the leasing coffee seller and brand in each of its expansion targets. They aim to do this through their finest quality coffee and other products, and by means of their high-quality customer service.
China is an exemplary example of how a Western company can triumph over cultural obstacles especially in the Eastern/Oriental part of the world.
For many people around the world, the globalization of goods and services from other countries is a most welcome event since it would allow them access to products that are not found in their own country. However, there are trade-offs in this kind of developments. One is changes that are influenced by globalization might threaten the feasibility of the local production; meaning, foreign products and services, which are sometimes much cheaper, might displace the current local producers of the host country. Another issue however has a greater impact in the society, which is the possible disruption of the country's cultures and traditions. This issue is of course applicable to both the host nation and the globalizing corporation; the former is when exposure to foreign products may change the country's culture, value and tradition, the latter is when the company resolves to adapt to the cultures of the host country, losing its culture in the process in exchange for profits.
Though China represents great opportunities because of its big population and impending growth, coffee is never of Chinese traditions. Starbucks faces a big obstacle: Most of China's 1.3 billion people don't care for the chain's signature product. Coffee is so unpopular in China's tea-drinking culture that until recently many Starbucks didn't brew regular drip coffee unless a customer ordered it.
Coffee was considered as a Western commodity and doesn't go well with Chinese food, cultures and traditions, tea of course sounds a lot better. It is difficult to transform a tea-drinking nation into a coffee-drinking

You May Also Find These Documents Helpful

  • Powerful Essays

    Starbucks primary objective is to establish the company as the most recognized and respected brand in the world (Starbucks Website). Starbucks is a gourmet coffee shop so they must increase their name brand so as to justify their gourmet status. In order to maintain its success Starbucks must implement an effective implementation plan. A company may have a great product, but if it fails to identify a specific market, or to use a proper marketing plan, it will not be able to successfully reach the consumers. Over the years Starbucks has been…

    • 1982 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Chinese culture was a key environmental factor that Starbucks had to consider when opening its first store in Beijing in 1999. ―The Land of Tea‖ wasn’t interested in the product Starbucks was selling: coffee. It wasn’t a part of their culture to grab coffee on the way to work or hang out with friends in coffee shops afterwards. Starbucks had to find a way to create demand for a beverage that few Chinese were familiar with or had a taste for.…

    • 543 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    The following paper will discuss how Starbucks would utilize tea and instant coffee in marketing and conducting business in Asia. In this particular aspect I will discuss the culture, habits, and perceptions of tea on the Asian culture. Starbucks has the opportunity to capitalize on a top fixture of Asian culture which is tea. The essay will challenge the reader to utilize their critical thinking skills as to how Starbuck will utilize business practices to conduct business in Asia..…

    • 1666 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    The strategic goal of Starbucks is to increase its build customer loyalty and attract more new customers, so that it could get more profits. Starbucks discover that they should give more information to customers by mobile commerce, such as make new applications and new mode of payment by mobile.…

    • 540 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Starbuck 's has become a staple of American culture and for the most part, if you are in your 20 's, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so "wake up and smell the coffee"! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz 's vision and mission statement is shared by everyone in the company!An excerpt from the London Financial Times published in February 2006 states the following in regards to Starbucks entering the Chinese market; "Mr Schultz said the company was looking at new ways to tailor the menu to local tastes, as US fast food chains have done." This statement leads me to believe that Starbucks pursues a multi-domestic strategy. A multi-domestic strategy implies that the company is located in separate countries, operates on its own, allows for change, and responds to national operational, product, and market requirements. Starbucks does exactly this! Furthermore, Starbucks makes the customization of products and marketing strategies its priority upon entering new territories.…

    • 1266 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    The overview of Starbucks’ Corporate Strategies are maximizing the market penetration, providing a relaxing and attractive social atmosphere, offers high quality products, create a great working environment and achieve profitability.…

    • 295 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Starbucks in Beijing

    • 336 Words
    • 2 Pages

    This is more than a storm in a coffee cup, with almost 200 stores already in China’s big cities, Starbucks is aiming to make this country its largest market, and bad publicity is bad for business. The company says it’s aware of the complaints but adds, many tourists find our respectful presence a welcome place of rest. Over the years, the rent from stores like Starbucks has helped cover the cost of upkeep and renovations to the almost 600-year-old Forbidden City. But soon here, it could be one Starbucks to go. XX, CNN, in the Forbidden…

    • 336 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Although the first Starbucks opened in 1971 it wasn't until the 1990s that the company became the iconic coffee symbol of America. Starbucks' popularity exploded along side a changing generation of young Americans who were on the move and connected to the world-wide-web, while yearning for bigger and better, no matter the cost. This generation quickly became known as the "_Starbucks Generation_" and now, a decade later; it's spilling over into a thriving China. Starbucks entered China in 1999 and has now made it their number one target for growth.� Why and how did Starbucks venture into the orient? Let's begin by taking a look at their global/entry strategy along with decision factors. Secondly, we will focus on the Chinese government's possible influence on the company. Finally, we'll touch on future strategic factors.…

    • 901 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Starbucks literally created that demand. Now you can find a Starbucks almost on every major street of the coastal cities in China. Even my 90-year old father in China began to tell me how he drank coffee after meals, rather than tea, to help his digestion. Starbucks has revolutionized how Chinese view and drink coffee.…

    • 989 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In the following research we will look whether Starbucks will be able to launch an aggressive expansion throughout Mainland China, a country known for its tea drinking history dating back to 5,000 years. Starbucks is known for its ability to locate the business outlets in perfect spots as well as market their products in beneficial ways. This report will try to analyze the three main questions:…

    • 1809 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    There are several barriers facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. The most obvious being that tea is the most common drink in China. The Chinese view tea to be both medicinal and beneficial, whereas coffee does not have the same value to the Chinese. In addition to this, one has to take into consideration the vast area of China; it would be very difficult to get coffee to the more rural areas of the country. Not only that, they have less familiarity with coffee and don’t have as much money to spend on the more expensive beverage. Lastly, the vast majority of the Chinese market who drink coffee are accustom to instant coffee. Having them change to brewed coffee could prove to be a long and arduous task.…

    • 919 Words
    • 4 Pages
    Better Essays
  • Good Essays

    STARBUCKS: SELLING COFFEE IN THE LAND OF TEA Starbucks has been doing business in China since 1999 when they opened their first coffee shop in Beijing. Today, hundreds of Starbucks stores sell coffee in the land of tea, including one at the Great Wall. It has become one of the most popular brands among the country’s 20 – 40-year-old upwardly mobile Chinese, or “Chuppies”, as they’re called, but so far China accounts for only about 10 percent of Starbucks’ sales. Nevertheless, Chairman Howard Schultz believes the country will someday be the company’s largest market outside North America. “The market response,’ he says, “has exceeded our expectations.” This may seem surprising when you consider the fact that the majority of China’s one billion-plus population are tea drinkers who didn’t know what coffee was until Nestle introduced a powdered version on store shelves in the 1980s. But Starbucks is betting that it can win the new generation over by marketing its signature product as an emblem of modern china’s new sophistication. “Coffee represents the change,” says Wang Jinlong, president of Starbucks Greater China. “The disposable income in concentrated on the young people, and this is the place they want to come.” Success in China could depend on how well Starbucks markets itself to what Wang calls the “little emperors.” China’s one-child law has spawned a generation that isn’t interested in collective goals, he says. Instead, they embrace the Western belief in individually that Starbucks embodies. After surveying Chinese consumers, Starbucks compiled a list of the top reasons they go to cafes. Surprisingly, the number one reason was “to gather with family and friend,” while “to drink coffee” lagged behind at number six. Living spaces are generally small and cramped there, making place to congregate important to the Chinese. Da Wei Sun, manager of outlets in Beijing, believes that Starbucks found success in China because it took this idea of a place…

    • 1702 Words
    • 7 Pages
    Good Essays
  • Better Essays

    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).…

    • 1174 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Report Body

    • 6565 Words
    • 25 Pages

    Starbucks is known to be the world’s largest coffee company. With over 17000 locations in over 50 countries the brand has positioned itself in customer mindset through its quality product, service and environment.…

    • 6565 Words
    • 25 Pages
    Powerful Essays
  • Best Essays

    Starbucks in China

    • 1145 Words
    • 3 Pages

    Before entering China, Starbucks decided to invest in market research to analyze the best approach to reach the Chinese market by entering joint with local companies in different regions across the country which allowed a direct access to the consumer for market research purposes. Several interesting findings were made regarding market behavior in China; first of all China is a tea-based consumption market so to generate acceptance to the Starbucks model products were created and adapted for the market by including typical ingredients such as green tea and red beans besides typical type food and pastries, also according to market research the local palate prefers sweet drinks and dislikes and is unaccustomed to the flavor of coffee.…

    • 1145 Words
    • 3 Pages
    Best Essays