Starbuck
Case 2-1 Starbucks keep it brewing in Asia
Discussion Questions:
1-
Starbucks is an American company who try to expend its business to other country around the world. However, each country owned and has an identity, a history, and culture. This requires to Starbucks to analyze the current market and adapt his offers according to the needs and mores (usages).
There are several barriers facing Starbucks to the “teaching” people to change their consumption habits from tea and instant coffee. First of all, the major problem is that a cultural problem. In fact tea is still the number one beverage in China because it is a part of China’s national heritage. China has 1.3 billion populations, and the potential 1.3 billion populations is largely based in rural area. There is a rupture between the big city where the economy is growing and with the rural area with lower income. The general idea is definitely that the China is considered a tea-drinking nation rather than a coffee-drinking nation. They believed in medicinal qualities of tea and think the coffee does not have some. It is very difficult to change this idea received even more for the population in rural area who do not necessarily believed an international company installed in the major cities such as Guangzhou, Beijing, and Shanghai. The barrier of tradition is very strong even more in this culture. Moreover, according to one report Chinese don’t yet appreciate the taste of coffee or the difference among types of coffee.
One other fact is the competition. Beyond tea there is also the barrier of competition of the “fresh-ground” market from Hong Kong, Canada, Philippines and Mac Donald’s coffee house. In fact the “fresh-ground” makes a big differences in terms of taste, and according to a survey there are five factors in choosing a brand and “high quality” is one of them. Furthermore, Nescafé holds, actually, nearly half the market share. And the biggest issue for every one who wants to introduce him in this
Discussion Questions:
1-
Starbucks is an American company who try to expend its business to other country around the world. However, each country owned and has an identity, a history, and culture. This requires to Starbucks to analyze the current market and adapt his offers according to the needs and mores (usages).
There are several barriers facing Starbucks to the “teaching” people to change their consumption habits from tea and instant coffee. First of all, the major problem is that a cultural problem. In fact tea is still the number one beverage in China because it is a part of China’s national heritage. China has 1.3 billion populations, and the potential 1.3 billion populations is largely based in rural area. There is a rupture between the big city where the economy is growing and with the rural area with lower income. The general idea is definitely that the China is considered a tea-drinking nation rather than a coffee-drinking nation. They believed in medicinal qualities of tea and think the coffee does not have some. It is very difficult to change this idea received even more for the population in rural area who do not necessarily believed an international company installed in the major cities such as Guangzhou, Beijing, and Shanghai. The barrier of tradition is very strong even more in this culture. Moreover, according to one report Chinese don’t yet appreciate the taste of coffee or the difference among types of coffee.
One other fact is the competition. Beyond tea there is also the barrier of competition of the “fresh-ground” market from Hong Kong, Canada, Philippines and Mac Donald’s coffee house. In fact the “fresh-ground” makes a big differences in terms of taste, and according to a survey there are five factors in choosing a brand and “high quality” is one of them. Furthermore, Nescafé holds, actually, nearly half the market share. And the biggest issue for every one who wants to introduce him in this