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Starbucks in China
Transcript of Starbucks in China
FDI: 909.8 billion 31st Dec 2012
The growth of coffee market
Platform for further expansion
Starbucks In China
When was it established?
By who and where?
Number of stores
Market Share (Include graphs of showing shares, Starbucks, Costa coffee, Cafe-Nero.
Include a logo with consistency
Market Entry Strategies
Starbucks Market Entry Strategy
Outcome and Future Plans
Standardizations Vs. Adaptations
Starbucks aims to become the leader of the coffee market. Once the regulations are less strict
11.77%, estimated in 2012
Has a niche in the China market
Confidence in public awareness
Strong brand image
Creates a great atmosphere for consumers
Thank You For Listening
Dave Olsen, Starbucks' senior vice president
GDP - 8% Per Year
Environmental Pressure Groups
Protection from unfair competition and takeover
Different types of market entry strategies
Starbucks - Joint Venture
Tazo Brand Expansion
The Changing Lifestyle and moving towards Westernized culture
Rising in Income Level
China is the 2nd biggest economy after USA
First Opened in Seattle on the 30th March 1971
1980-Largest coffee roaster in Washington with 6 retail outlets.
Howard Schultz, left Starbucks in 1985
Returns in 1987 with 3.3 million to buy out investors
20,366 stores in over 60 countries
745 in China
Stock Reward Scheme
China Tea Culture
Potential for new products to be created or improved
Developments in non-high street areas
Growing competition from the fast food industry
Lack of ownership of coffee farms
Global crisis/financial resources.
Standardizations Vs. Adaptations
What they Kept the same
What they changed
Added tea products for the Chinese people
"We're not just selling a cup of coffee, we are providing an experience" Starbucks
Chinese Middle Class
It was successful for Starbucks to go China
China depend on FDI
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