Why Starbucks “Profiteering” In China

“A Chinese state-run newspaper blasted Starbucks for “profiteering” in the mainland raising concerns that the world’s largest café-chain could become the next prominent foreign company to be targeted by state media.”

Considering average income in mainland was considerably low, not surprisingly, The Economic Information Daily, a newspaper run by the official Xinhua news agency chastised Starbucks for selling its coffee at a extremely high price and having low cost performance compared to other coffee stores in China.

Why people in china still buying Starbucks blindly even if the price of coffee is 80% higher than that in US? I think the popularity of culture in Starbucks should never be ignored. From the required reading “happy feet” in class 19, it is noticeable that  organizational culture and human resources management enable companies to effectively serve customer so that raise the frame of a company.

Moreover, the thought that goods come from abroad are famous and special being taken for granted by Chinese people. They chase brand blindly and show off by taking photos and posting blogs if they buy a cup of coffee. All the things result in increasing rising price of Starbucks in China.

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