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Starbucks in China

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Jasmine Sheikh

on 18 November 2013

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Transcript of Starbucks in China

Company Overview
Why 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
SWOT Analysis
Internal Factors
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
Presented By
11.77%, estimated in 2012
External Factors
Has a niche in the China market

Confidence in public awareness

Strong brand image

Creates a great atmosphere for consumers
Thank You For Listening
Any Questions...?
PESTLE Analysis
Dave Olsen, Starbucks' senior vice president
GDP - 8% Per Year
Changing Tastes
Tea Culture
Payment System
Environmental Pressure Groups
Fair-Trade Movements
Joint Venture
Protection from unfair competition and takeover
Different types of market entry strategies
International Licensing
International Franchising
Joint Venture
Starbucks - Joint Venture
Market Knowledge
Cultural Knowledge
Tazo Brand Expansion
Staff Training
Different menus
Store layout
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
Starbucks' Existence
Company Success
745 in China
Stock Reward Scheme
Jasmine Sheikh
Adrian Bailey
Amina Sharif
Acha Ahmed
Jeniss Paclejan
China Tea Culture
Premium Brand
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
Staff Training
Store Layout
Staff Training
Added tea products for the Chinese people
Image consistency
Family integration
"We're not just selling a cup of coffee, we are providing an experience" Starbucks
Chinese Middle Class
Costa Rica
China Superpower
It was successful for Starbucks to go China
China depend on FDI
Wang, H. (2012). Five Things Starbucks Did Right to get China. Available: <<http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/2/.>> Last accessed 8th Feb 2013.

Forbes. (2013). Starbucks: Global Coffee Giant Has New Growth Plans.Available: << http://www.forbes.com/sites/walterloeb/2013/01/31/starbucks-global-coffee-giant-has-new-growth-plans/?utm_source=dlvr.it&utm_medium=twitter. >> Last accessed 7th Feb 2013.

Lin, L. (2012). Starbucks to More Than Double CHina Staff to 30,000 by 2015. Available: <<http://www.bloomberg.com/news/2012-12-12/starbucks-to-more-than-double-china-staff-to-30-000-by-2015.html.>> Last accessed 7th Feb 2013.

Blessing, K. (2012). Starbucks To Open Tazo Tea Store. Available: <<http://www.bloomberg.com/news/2012-06-20/starbucks-to-open-tazo-tea-store.html.>>Last accessed 7th Feb 2013.

Rein, S.. (2012). Why Starbucks Suceeds in China and others haven't.Available: <<http://usatoday30.usatoday.com/money/industries/food/story/2012-02-12/cnbc-starbucks-secrets-of-china-success/53040820/1. >> Last accessed 8th Feb 2013.

United Nations. (2006). Alliances and Joint Ventures :Patterns of internationalization for developing country enterprises. Available: << http://www.unido.org/fileadmin/user_media/Publications/Pub_free/Alliances_and_joint_ventures_part_1.pdf. >>Last accessed 6th Feb 2013.

Song, K. , Cui, A.. (2009). Understanding China’s Middle Class. Available: <<http://www.monitor.com/Portals/0/MonitorContent/imported/MonitorUnitedStates/Articles/PDFs/Monitor_Understanding_Chinas_Middle_Class_CBR.pdf.>> Last accessed 6th Feb 2013.

Author, Initials., Year. Title of article.Full Title of Journal, [type of medium] Volume number (Issue/Part number), Page numbers if availalble. Available through: Anglia Ruskin University Library website <http://libweb.anglia.ac.uk> [Accessed date]

Mao, N. [2012] Teahouses and Coffeehouses, Teahouses and Coffeehouses - China - October 2012. [online] Available from:<http://academic.mintel.com/display/622095/?highlight=tru> [Accessed: 07 Feb 2013].

Crabbe, M [2012] Teahouses and Coffeehouses, Teahouses and Coffeehouses - China - October 2012. [online] Available from: http://academic.mintel.com/display/614280/?highlight=true> [Accessed: 05 Feb 2013].
Rein, S.. (2012).Why Starbucks Suceeds in China and others haven't.Available: <<http://usatoday30.usatoday.com/money/industries/food/story/2012-02-12/cnbc-starbucks-secrets-of-china-success/53040820/1. >> Last accessed 8th Feb 2013.
Prof. Rodenberg, J. (Unknown). Costa Coffee Vs Starbucks – Business Intelligence [pdf] Unknown: Temple Wise. Avaliable at: http://rodenberg.nl/publications/publications/COSTA_COFFEE_vs_STARBUCKS.pdf [Accessed on: 7th February 2013]Veloso, B. (Unkown). Myle’s Blog. SWOT Analysis for Starbucks Coffee Company. [online]. Avaliable at: http://mamelendez.wordpress.com/other-work/swot-analysis-for-starbucks-coffee-company/ [Accessed on: 7th February 2013]
Starbucks. (2013). Starbucks Official Website-China. Available: http://www.starbucks.com.cn/en/ [Last accessed 7th February 2013]
Nisen, M. . (2012). Starbucks Has A Brilliant Strategy For Dominating The Chinese Market . Available: http://www.businessinsider.com/starbucks-strategy-in-china-2012-10. [Last accessed 8th February 2013]

UWBusinessSchool.(2002).StarbucksCorporationCompetinginaGlobalMarket .Available:http://www.foster.washington.edu/centers/gbc/globalbusinesscasecompetition/Documents/Cases/2003Case.pdf. [Accessed on: 4th February 2013]

UW Business School. (2003). Starbucks Corporation: Competing in a Global Market [pdf] Business School. Available from: http://www.foster.washington.edu/centers/gbc/globalbusinesscasecompetition/Documents/Cases/2003Case.pdf. [Accessed on: 3rd February 2013]
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