Market Entry Strategies Case Study

Achieving Success in China: Starbucks’ Strategies and Challenges

OR

Abstract:

Starbucks, the world’s leading retailer, roaster and brand of specialty coffee opened its first store in China in 1999. Despite initial skecpticism about the entry of a coffee brand in a traditional tea drinking nation, Starbucks was well received in China and had established its presence there. It was rapidly expanding and announced that it looked to China as the largest market outside the US. Although Starbucks was confident of its growth there, it faced some challenges. Following its entry, a number of imitators which tried to replicate all the features of the Starbucks stores had opened. A number of international players also operated and planned to expand their presence in China. Revenues from its Chinese operations were not significant since Starbucks operated mainly through partnerships and licensees. Marketing analysts wondered if the initial success of Starbucks in China could be sustained.

The case facilitates discussion on (1) Entry strategies adopted by an established brand while entering an emerging market (2) Localisation strategies of Starbucks (3) Sustaining and increasing profits from its Chinese operations.

Pedagogical Objectives:

• Entry strategies adopted by an established brand while entering an emerging market
• Localisation strategies of Starbucks
• Sustaining and increasing profits from its Chinese operations.

Keywords : Starbucks; China; Speciality Coffee Retailer; Market Entry Strategies Case Study; Entry Strategy; Localisation Strategy; Partnerships; Store Location; Store Operations; Store Design; Consumer Behavior; Trademark; Intellectual Property Rights; Chinese Coffee Consumption; Tea industry in China; Expansion strategy

Contents : 
About Starbucks
Coffee in China
Entry strategies in China
Consumer Behavior