Starbucks Business Strategies: How it Managed to Succeed Essay

In this case, in my opinion, there are three primary methods to succeed for Starbucks.

First of all, Starbucks focused on image. The Starbucks realized that its customers come in not only for the coffee but also for the atmosphere that Starbucks provide for them to enjoy time with friend and acquaintances. Therefore, in order to appeal and capture more customers, Starbucks focused on providing an exceptional experience and spreading the goodwill through the world of mouth. It offer tasty coffee, comfortable lounge chairs, upbeat music, and newspapers and magazines to customers, which generate the Starbucks Experience that make customers feel trendy and cool. Starbucks attempted to market the Starbucks Experience in terms of its store atmosphere, product quality, and customer service and employee relationship, and relied on its image as the ideal medium for promoting the business, its product and its value of coffee.

Next, I think Starbucks has smart position. Starbucks Company did not use any commercial advertisements and promotion in China, instead, it focused on selecting high visibility and high traffic locations. Starbucks established retail stores at high visibility locations, and according to specific location, it decided to position each store individually. Because Starbucks set up the smart position, the flexibility of this strategy has attributed to the great success of the Starbucks Company. In addition to, Starbucks positioning is environmentally and friendly, which could make a positive impression and make customers would be more likely to approve it.

Finally, Starbucks built a cooperative relationship with three different regional partners in eastern China, southern China and northern China. In northern China, Starbucks entered into a joint venture with The Beijing Mei Da coffee company which was responsible for manage the operation in Northern China and promote the coffee culture. In eastern China, Starbucks established partnership with the Taiwanbased UniPresident Enterprises which helped Starbucks increase its stake in the Eastern Chinese market. In southern China, Starbucks cooperated with Hong Kongbased Maxims Caterers which helped Starbucks know better the local taste and preferences of Chinese consumers. Besides developing cooperation, in order to make more profits in Chinese market, Starbucks also decided to set up whollyowned company operated stores in cities where its three partners did not run and planned to increase the stakes in the partnerships and joint ventures.

As far as I am concerned, I think Starbucks will succeed in this region in the future. Firstly, Starbucks focuses on marketing the Starbucks Experience, which will attract more and more people of China to appreciate it. Caf culture is becoming more and more popular in China of today. Secondly, Starbucks has young target population so it will be given a secure future because this generation will continue to do business with Starbucks as they continue to grow older. Thirdly, Starbucks established partnerships with local companies, which is beneficial to realize the local tastes and preferences of the Chinese consumers to develop business. Finally, even though facing the increasing competition, Starbucks has its strategies to develop and strengthen itself.