Starbucks, better known as the world’s largest coffee chain, finally made its way the Land of Tea in the year 1999. All too often, many American companies that come to China fail to succeed with their business endeavors.
In contrast, Starbucks somehow made it work over the years. Having been in China for over 19 years, the first nine years were not very successful.
Patience and commitment played a huge role in the success of Starbucks in China. In addition, when it came to comprehending certain issues that were difficult to understand, networking and friendships helped out
The key issues to be researched and solved are:
1. The key cultural factors Starbucks had to consider as it expanded to China.
2. The political and legal factors Starbucks had to consider in the Chinese marketplace and the risks of entering a country with these types factors. What changes have occurred in China’s political and legal structure to the advantage of foreign countries?
3. Demographic factors that were important for Starbucks to understand in China along with the demographics Starbucks decided to target.
4. The initial global-market strategy Starbucks employed to enter China including the advantages and disadvantages to this early strategy. How has the strategy changed since then and why?
As Starbucks expanded into China, some key cultural factors had to be taken into consideration. Cultural factors have a lot to do with culture and value, subculture, and social class as it exercises a huge influence on decisions made in conformity with buyers. Starbucks feat within the Chinese market all depended on whether they accepted and followed these elements. Initially entering the Chinese market back in 1999,