Starbucks In China Case Study

STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment. 2.0 PESTEL ANALYSIS
A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives.

Topics discussed include Starbuck's aggressive expansion in places such as China and his turn over of day-to-day operations to Troy Alstead to concentrate on Starbucks' next-wave goals, how he took risks to restore Starbucks after its stock price went down to 7.83 U.S. dollars and Starbucks's integrated mobile platforms at the center of its instinct to innovate. Lorenzetti, L. (2014). Where Innovation Is Always Brewing. Fortune, 170(7), 24. The article presents information the success of the coffee company Starbucks.

In the third panel of their ads, Dunkin’ Donuts talk about how their coffee is the solution to a “crazy morning”, “commute”, and “life’s daily chaos”. This is a declaration from the company that their product is target toward everyday drinkers. Looking at this segment, the most prominent features we can identify is that this is an attractive, stable, and sizable market that can produce good profit. On their study of Coffee Drinking Statistics (2015) of America, Statistic Brain Research Institute shows that there are 100 million American who drink coffee daily. 29% of whom go to lower-price outlets such as Dunkin’ Donuts or McDonald).

Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.

Having covered a brief and beautiful history about the tea, it’s worthwhile to see what role tea plays in the daily life of the Chinese people, and how it influences its culture. Tea is a part of life in Hong Kong, China and Taiwan. It is a staple and is available in every form, from cheap invigorating plastic bottles sold at supermarkets and convenience stores, to the sweet and delicious Earl Grey milk tea with pearls, to the costliest rare high mountain leaves served in the customary gongfu style. oday, tea is ubiquitous in China, and is everywhere, even on the HKUST campus, from the cheap canteens to the expensive restaurants, it’s a staple with almost every meal of the Chinese people. Most chinese families as well prefer tea over other beverages like coffee, and the preparation of the tea is meticulous and careful.

Speech Topic: Living in Beijing Rhetorical Purpose: To inform my audience about living in one of the fastest developing cities in the world, especially working conditions and opportunities there. Meanwhile, the different between New York City and Beijing. Audience Analysis: (Refer to chapter on Audience Analysis)(RU Core Goal: a) Summarize Audience demographics, prior exposure/knowledge, common ground/interest, disposition/attitude, and situational characteristics. Recognizing that China is becoming a major economic force in the world, and anyone going into any kind of business should be more educated about China. Since most of the audiences are college students who will start their businesses after graduation, China is a good place

In 1995, with 700 stores the United States, Starbucks began exploring foreign opportunities. Its first target market was Japan. Starbucks followed the strategy of Franchising in U.S. Starbucks initially decided to license its format in Japan but later on it has to Joint venture with a local retailer, Sazaby Inc. Each company held a 50% stake in the venture, Starbucks Coffee of Japan. The CAGE distance framework helps an organization for the selction of a country to enter to expand its market. The cultural, administrative, geographical, economic distance plays a important criteria for the success of business in global market.

When it also comes to business level, large companies like Starbucks can effectively pursue Focus-Based Strategy in conjunction with cost leadership based strategy. Being a lower cost store will increase the difference between Starbucks and other known stores. At present, Starbucks competitors are attempting to specialize in the coffee business, therefore Starbucks must pursue focus strategy to increase its strength. Starbucks must also focus on Health Drinks, because Consumers are always progressively looking for the nourishment items that are common and natural on Health Drinks, Enlargement into the Corporate Market, and Market their brand more aggressively in order to convince people that they serve coffee that is superior to any other coffee being served in different shops. My suggestion for Starbucks is to enter new markets and while doing that they can use a combined joint venture and licensing strategy since it has been proven very effective for Starbucks in the past, and it minimizes

The profitability of HealthTea Café will be determent by the ability to secure prime locations, drive store traffic, and deliver high quality products while savouring a relaxing atmosphere. Large companies have advantages in marketing, finance, and purchasing. HealthTea Café can compete efficiently by offering specialised products, serving a local market, or providing a personal level of customer service. Market Trends Over two decades ago a trend towards more unique coffees began to develop, there has always been specialty cafes, but people began to buy coffee machines for their homes and offices, and people began to have coffee tastings, espresso bars followed where people became adapted to the smell of coffee and up popped café shops in volumes. The market trend is headed toward a more cultured customer in many ways: • Food quality: the preference for higher-quality ingredients is being strengthened as customers are being exposed to a growing number of alternatives.

Then, the first coffeehouse in Hanoi opened in the year 2000, by which time 100 outlets had already been built up. In 2001, Trung Nguyen declared the new slogan “Explore creative inspiration”, Trung Nguyen won the consumers’ admire over the country for its extraordinary coffee that had been extracted from the finest quality coffee beans, utilizing propelled innovation and one of a kind imitable oriental recipes, and mixed with an intense passion for coffee. On November 23, 2003, G7 instant coffee was presented in the “G7 instant coffee festival” at Thong Nhat Palace which pulled a huge number of participants. The highlight of the festival was the blind test asking participants to pick out the best instant coffee between G7 and a world’s leading brand of instant coffee. In the end, G7 won with 89 per cent of