Starbucks' Success Story in China
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR306
Case Length : 23 Pages
Period : 1998-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Starbucks Corporation
Industry : Coffee Retailing
Countries : China
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
Starbucks was started by Gordon Bowker (Bowker), Jerry Baldwin (Baldwin), along with Zev Siegl (Siegl) in the US. Bowker was a writer, Baldwin an English teacher, and Siegl, a history teacher...
Global Ventures
In 1995, the company was organized into two separate business units, North America and International. Thus SCI was created as a fully-owned subsidiary of the parent company. The purpose of SCI was to help Starbucks expand internationally as the company was of the view that the growth in the US might become stagnant in the near future and so it was necessary to find other channels of growth...
Starbucks Tests Chinese Waters
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After the opening of the Chinese economy in the early 1980s, China became a lucrative market for international investors. In the period between 1990 and 2003, the Gross Domestic Product (GDP) of China grew 9.3 percent on an average...
Starbucks Opens Outlets in China
After running the distribution business for a few years, Starbucks gained considerable knowledge about the market conditions and then started to open Starbucks Coffee stores in China.
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In China, the company adopted a strategy of having three different partners to access different regions...
Introducing Coffee to the Chinese
When Starbucks started in China, one of the biggest challenges it faced was to make the consumers accustomed to drinking and appreciating coffee.
According to analysts, compared to other countries in which Starbucks operated,
this task was more difficult in China because of the age old tradition of tea
drinking in the country, where coffee was seen as nothing less than a kind of
Western invasion... |
Excerpts Contd...>>
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