Case Details: |
Price: |
| Case Code |
: |
BSTR306 |
For delivery in electronic format: Rs.
400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling ChargesThemes
International Business | Globalization Business |
| Case Length |
: |
23 Pages |
| Period |
: |
1998-2008 |
| Pub Date |
: |
2009 |
| Teaching Note |
: |
Not Available |
| Organization |
: |
Starbucks |
| Industry |
: |
Food and Beverage |
| Countries
|
: |
China |
Abstract:
|
Starbucks, one of the largest coffee chains in the world, was
started in 1971 in Seattle, USA. It is regarded as the pioneer of the coffee
culture in the US and in many other countries. Earlier, Starbucks dealt only in
coffee beans and equipment. It was only in the 1980s, with Howard Schultz taking
charge as the marketing chief and later as CEO that the company ventured into
building coffee houses. In 1995, the company started its international expansion
by entering Japan, followed by many other countries in the later years. It
entered China around the mid-1990s with a distribution business, before making a
full-fledged entry with its retail stores in 1998.
|
|
The case particularly talks about Starbucks' entry into
China. It highlights the strategies of entry and expansion and also discusses
some of the localization strategies followed by Starbucks in the country.
At a time when the company was facing severe pressure in its home country and in
certain other international markets due to a host of factors, its success in
China attracted the attention of experts. This was particularly so as the
Chinese market was considered a hard market to crack for Western companies and
also because of the fact that China had a tea drinking culture with the beverage
market predominantly controlled by tea. The case ends by highlighting the
challenges and future prospects of Starbucks in China.
Issues:
» Evaluate Starbucks' globalization strategies.
» Study and analyze the entry and expansion strategies of Starbucks in China.
» Examine some of Starbucks' efforts to localize its offerings in China.
» Examine the challenges faced by Starbucks in China.
» Explore future strategies that Starbucks can adopt.
Contents:
Keywords:
Globalization, entry, expansion, localization, promotion,
pricing, Beverage market, coffee, China, Starbucks, Starbucks experience
Starbucks' Success Story in China
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