Shengyuan Fang's Blog

 

  Today, Starbucks is the most successful and famous coffee store in China. An increasing high number of people like to have a cup of coffee at the beginning of a day.  The social trend and the amazing number of population illustrate a profitable target market. The widespread communication between different cultures has been contributed to the Starbucks’ success in China. However, the target market seems to be undifferentiated because there are not lots competitors in China.

                   when Starbucks came to China, the first stores were located in Beijing and Tianjin, the above is the store in Tianjin.

          Starbucks is the first brand enters into Chinese market as a coffee store. Even through Chinese market is the second profitable markets to Starbucks, there are lots of potential risks. The less stress from the competitors causes the less attention on the company developing strategy. The only strategy I can see is that Starbucks try to establish its stores as any as possible. I do not mean that this is not right; I think that Starbucks also needs to pay some attention to other strategies such as customer service. It seems that the service of Starbucks in China is not better than others in the similar industry; however, the quality of the service is even under the average. Why? Because of a big company it is.

        In China, the less efficiency management has lead to a damage of the brand image that the Starbucks’ most important competitive advantage in North America market, and Starbucks spent lots of effort to establish. Moreover, the inefficiency of management has raised the competition inside of the company. There are several stores that are too close to each others, they compete for the same customers in the same region. ( see the map on the right hand side how stores close to each others) I think that there should be some market protection to each store so that to avoid a loss from inside competition.

     

       Therefore, I believe that Starbucks should be more alter to those potential risks for the long run development in China. Also, the company should be pay attention to the local culture.

The following reading is about that Starbucks raised the indignation of the public in China.

“Forbidden City Starbucks”

http://news.bbc.co.uk/2/hi/6898629.stm