Starbucks in China essay

Starbucksin China

Starbucksis a successful coffee maker, reputable for making the premiumquality of coffee in the market. The beverage enterprise is popularin the USA and is it expected that it would not have much difficultyas it endeavors to enter the Chinese market(Knight 19).To succeed in the plan to open new markets, especially internationalmarkets, one of the strategies employed by the firms is the technicalinnovation strategy. The technological innovation strategy involvesthe introduction of goods and services that are clearly superior tothe existing products on the market(Knight 29).The rationale is to enable the products to penetrate the market onbasis of higher quality. Consumers would like to be associated withsuperior quality goods. The technical innovation strategy is quitefavorable in the application to foreign markets as the customers arealways looking forward to products that could offer something unique.Firms that employ the strategy have the objectives to maximize on thesales volumes before competitors introduce similar goods or servicesinto the market(Ekeledo, and Sivakumar 72)

Productadaptation strategy is also a preferred approach by many firms. Theapproach focuses on modifying the existing products and services sothat it improves the quality and the cost. Starbucks, for example,would take the time to understand the nature of products in theChinese market and make deliberate efforts to modify its range ofgoods. The rationale of adopting this strategy is to give theconsumers a chance to embrace a product or service that they are moreor less familiar with but at the same time, the products have uniquefeatures meant to influence their perceptions positively. Starbuckscould create products that are closely related to what the consumersare used to in the Chinese market but ones that have unique featuresto identify with the new company(Knight25).However minor, the differences may be, the consumers are more likelyto embrace the new products for experimental purposes. Anymodification of the product could make the customers switch theirallegiance and stick to the new product. The strategy capitalizes onthe attention that new products receive, to penetrate the newmarkets. Some modifications regarding quality and packaging could goa long way to capturing and penetrating the market by the firm(London, and Stuart 360).

Availabilityand security strategy could also turn out to be a crucial strategyfor Starbucks in its bid to penetrate the Chinese market(Knight 34).The procedure involves, overcoming the logistical challenges so thatthe firm penetrates areas that have not been served by other playersin the industry. If the enterprise can strategize and serve thissegment of the market, it will have managed to reach a customer basethat has not been focused on by players offering similar products. Itwould be an opportunity for Starbucks as a firm to introduce therange of products and make efforts to retain the market(London, and Stuart 365).The customers who may have felt neglected would, in turn, embrace theproducts and services. Serving segments of the population that havebeen ignored for long is always a good penetration strategy for newfirms such as Starbucks. It would get the chance to demonstrate itscapabilities without distractions from any form of competition.

Starbuckscould also employ Low price strategy whereby the firm adopts lowpenetration rate to capture the attention of the consumers in theindustry(Knight 16).The approach will be useful if the company aims to provide productsand services that are similar or slightly different with thoseoffered by the competitors. Pricing strategy is very helpful in theentry of new markets as consumers in most markets have objectives tomake any gains that are informed by reductions in prices of goods andservices.


Knight,Gary. &quotEntrepreneurship and marketing strategy: The SME underglobalization.&quot Journalof International Marketing8.2 (2000): 12-32.

Ekeledo,Ikechi, and K. Sivakumar. &quotInternational market entry modestrategies of manufacturing firms and service firms: A resource-basedperspective.&quot Internationalmarketing review21.1 (2004): 68-101.

London,Ted, and Stuart L. Hart. &quotReinventing strategies for emergingmarkets: beyond the transnational model.&quot Journalof international business studies(2004): 350-370.