Preview

How Starbucks Enter Into the Hong Kong Market

Powerful Essays
Open Document
Open Document
5996 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Starbucks Enter Into the Hong Kong Market
International Marketing Written Report

1

Starbucks – A Coffee Kingdom How it comes to enter into the Hong Kong market?

Content
Introduction ......................................................................................................................................... 1 An introduction of Starbucks .............................................................................................................. 2 History.......................................................................................................................................... 2 Products and services .................................................................................................................. 2 Expansion abroad ........................................................................................................................ 3 Starbucks in Hong Kong............................................................................................................... 3 Global marketing environment ........................................................................................................... 4 Industry and competitive analysis .............................................................................................. 4 PEST analysis................................................................................................................................ 4 Generic competitive strategy...................................................................................................... 6 SWOT analysis...................................................................................................................................... 8 Strengths ...................................................................................................................................... 8 Weaknesses ................................................................................................................................. 9 Opportunities



References: Starbucks in Hong Kong [Online] Available from: http://www.starbucks.com.hk/en-US/ (last assessed on 10/04/2012) 10

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth…

    • 653 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Bus 401 Mod 2 Case

    • 880 Words
    • 4 Pages

    The purpose of this paper is to write an essay about Starbucks global expansion strategy with a focus on China. Starbucks first went international in 1996 in Tokyo Japan; today there are over three thousand coffeehouses in thirty-seven different countries. “The number one priority of our company in terms of new growth is China,” said Howard Schultz, chairman of the coffee chain. “The US company has two hundred and nine stores across eighteen mainland Chinese cities, about one hundred and twenty of which lie in the capital or around Shanghai” Andrew Yeh wrote. Compared to the six hundred coffee shops in Japan Starbucks is behind in growth for China. With China’s emerging economy and booming population it is a no-brainer that a rapid expansion into China would be a great business opportunity.…

    • 880 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food snacks and coffee accessories Starbucks has attracted consumers and turned them into loyal customers. (Starbucks Coffee Company, 2012)…

    • 1052 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Starbucks Ltd.

    • 2467 Words
    • 10 Pages

    The business strategy of Starbucks ' is identical to the corporate level strategy since the company is a single business company, focusing on only coffee-related products and retail stores.…

    • 2467 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    Being a communist country, Starbucks would have many challenges to overcome before it could maintain any business effect in a short period of time. They had to take into account that business could change in China overnight. With this in mind, Starbucks decided to partner with local businesses who already understood the politics and business of China, thus Starbucks was able to learn what being in business in China was all about to better structure their future 'stand-alone' enterprise. The Chinese market changed after Beijing…

    • 560 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    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.…

    • 746 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company. Starbucks closed more than 200 coffee shops in the U.S because they felt that the business in China had not felt the impact of the global economic slowdown and that they might eventually rival with the United States. While they closed unprofitable stores in the U.S., Starbucks has also downsized its plan for the number of international stores from 900 to 700 for fiscal year 2009. Two-thirds of the stores are expected to be licensed, which usually involves less cost to operate than self-owned stores. Starbucks remains highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and they work hard to continue to earn the trust and respect of their customers every day.Some of the decision factors that Starbucks assesses when attempting to market globally with different countries would be; how they choose partners. This factor is very critical to maintaining the success rate that the company enjoys. Shared values, strategic fit, good leadership and a strong track record are among the most important qualities that they look for when choosing partners. The most pressing decision factor for Starbucks in opening a coffee shop in China is that the "Chinese are mainly tea drinkers and are unfamiliar with coffee. China offers an immense market potential for Starbucks, since it constitutes one-fifth of the world population. Starbucks opened its first store on the Chinese mainland in 1999 and now has more than 350 outlets in 26 cities. It has become one of the, if not the, most popular coffee brands among Chinese white-collar workers. Starbucks buys coffee beans from China and roast in the U.S. and…

    • 612 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Global Strategic Planning

    • 554 Words
    • 3 Pages

    According to Paul S. Biederman, the most pressing decision factor for Starbucks in opening a coffee shop in China is that the Chinese are predominantly tea drinkers and are unfamiliar with coffee: (2005, p. 288). Thus one of the strategic choices and entry strategies that Starbucks adopted is to upwardly mobile, predominantly young, and interested in consumer products, especially foreign items that have previously been unavailable (2005, p. 288) who belong to a middle class which have been appearing in coastal areas and China 's capital.…

    • 554 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Starbucks is an American worldwide coffee company based in Seattle, Washington. It was founded on March130, 1971. Actually, it is considered as the largest coffee shop chain in the world with total stores of 17,651(as of July 1, 2012, official company’s website) locally and internationally. Starbucks stores are serving both hot and cold beverage, snacks, pastries, sandwiches and other non-coffee products. Different mugs in term of shape, size and color are available as well. After foundation, the company experienced an immense and huge expansion that only few companies managed to do it. In fact, Starbucks has several stores in both USA and worldwide. Its expansion philosophy makes it very hard to compete with. It was present in almost every market both the national and the international level.…

    • 1428 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Starbucks acquired the Seattle Coffee Company 1988 -1995 o Global economic recession  Stepped into the specialty coffee grocery channel  Starbucks scaled down its overseas operation  Introduced bottled Frappuccino  New store in Canada 1982  Starbucks went public Howard Schultz joined the company but left soon and opened the coffee bar, II Giornale 1971 The first Starbucks Store opened in Seattle with products as coffee beans and coffee-making equipment Presence in 56 countries through 17,000 stores Strategic decision to be taken Had the pace, rhythm and scope of Starbucks internationalization affected company’s performance in previous years? Should Starbucks resume its international expansion and once again intensify its commitments in overseas markets?…

    • 1144 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    Starbucks Global Strategy

    • 3385 Words
    • 10 Pages

    In April 2010, Starbucks CEO Howard Shultz said that China is setup to usurp Japan as its biggest market outside North America, as well as crack the potential lucrative Indian and Vietnamese markets, where it doesn’t yet have a presence. This move into the international markets was a necessary step following the retrenchment in the U.S., where they saw the closing of hundreds of underperforming stores and cutting nearly $600 million of costs.…

    • 3385 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty beverage chain and the menu is relatively small. Starbucks has more than 1,000 retail locations in the Asia-Pacific area, and over a hundred in Europe, Middle East, and Africa. This paper will outline on a high-level the international business practices of Starbucks Corporation, and identify both learnings and successes the company has picked up along the way to becoming a world-wide, globally recognized brand.…

    • 2214 Words
    • 9 Pages
    Best 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
  • Good Essays

    starbucks background

    • 634 Words
    • 3 Pages

    Since then ,Starbucks has entered many Chinese cities and brought different products into Chinese market.…

    • 634 Words
    • 3 Pages
    Good Essays

Related Topics