Seattle-based author coffee brand Starbucks is a major player in the beverage market in the U.S. With its coffee business at a strong 19% profit margin Starbucks is potently positioned for further expansion. Although the chain already has 500 stores in China, it plans to book 1500 by 2015. (McHugh, 2012) composition overseas expansion is tempting, it can try out challenging. For a culturally specific business ilk Starbucks making the transition to international markets requires deep understanding of the countrys culture and tradition. As it relates to China, where tea is the preferred beverage, it means interruption cultural barriers and convincing consumers to expand their taste preferences.
One of the things Starbucks testament compulsion to overcome is taste preferences. Because coffee is not as popular in China, the Chinese prefer instant brands. In position, Nescafe (a Nestle brand) holds nearly half the market character and has incur the Chinese generic term for coffee. (Hawkins & Mothersbaugh 2010, p. 264) Because of this, a major barrier that Starbucks has is timing.
Being late to the market after taste preferences go for settled in for a lesser brand, convincing consumers to try, enjoy, and patch up more for Starbucks coffee is a big challenge. Consider the fact that despite a 90 percent growth in coffee sales in China in upstart years, per capita consumption is still under one kilogram per individual compared with four kilograms in the United States. (Hawkins & Mothersbaugh 2010, p. 264)
Another barrier for Starbucks is profit-margin. While it holds a firm, nearly 20 percent market portion out in the U.S., it holds only 13 percent market share worldwide. The competition from other established international coffee brands like Pacific Coffee which is made in Hong Kong will need to be addressed by Starbucks selling a superordinate brand...If you want to get a full essay, order it on our website: Orderessay
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