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People's Republic of China and Starbucks

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People's Republic of China and Starbucks
Integrative Running Case Study: Starbucks
Mount Vernon Nazarene University

MAR3043
March 19, 2014

Starbucks
A case analysis of Starbucks can provide a much closer look at the company, its strengths and weaknesses, as well as the company’s ability to do business on a global scale. In order to best analyze this company, a SWOT analysis, along with answers to the case study questions is provided below. Furthermore, a few recommendations are included that are brought to light by reviewing the facts of the Starbucks case study. This thorough investigation of the Starbucks company adds a rather complicated “flavor” to my favorite caramel macchiato that had never before been considered. Starbucks has been serving coffee domestically since the early 1970’s. After experiencing success in the domestic market, Starbucks entered the global marketplace, including opening its first stores in China in 1999. (Lamb, p.139) The company entered the Chinese marketplace knowing the vast opportunities that were available, but quite aware that many factors had to be accounted for in its marketing mix and product offering strategies. Cultural, political, and economic factors played important roles in discovering the best plan for delivering a lucrative coffee business to a land where the majority of consumers had never even had a cup of coffee. Partnering with local developers provided a safer market-entry strategy that Starbucks was ready to relinquish in 2006. After gaining several years of experiencing in the business environment of China, Starbucks embraced the chance to try its own hand at delivering a lucrative business operating in an environment that had many similarities to its domestic marketplace in the United States. A discussion of the strengths, weaknesses, opportunities, and threats for the Starbucks company is provided to further understand its success in the global marketplace. Strengths: The decision Starbucks made



References: Lamb, C.W., Hair, J.F., Jr., McDaniel, C. (2011). Marketing (11th ed.). Mason, OH: South-Western.

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