NOT MY CUP OF TEA China is a country famous for tea. Over thousands of years, tea has been the beverage of choice in China. This, however, did not deter Starbucks from entering one of the fastest-growing consumer markets in the world. The first Starbucks opened in Taipei, Taiwan, in 1998 and the first mainland store was opened in Beijing in 1999. In an interview with CNN, Starbucks CEO Howard Schultz discussed the initial road bumps the company encountered in the tea-obsessed country. "We had to educate and teach many Chinese about what coffee was-the coffee ritual, what a latte was So, in the early years, we did not make money." However, by late 2016 there were over 2.300 stores in China, and Starbucks announced a goal of 5,000 by 2021, opening one new store every day for the next five years Starbucks analyzed the Chinese market and found that their brand was valued not only for their food and beverage offerings but also for the atmosphere of Starbucks stores. Chinese consumers enjoyed the opportunity to meet with friends and business partners in a comfortable location and appreciated the upbeat music and chic interiors. While kiosks have become popular in the United States, some Chinese Starbucks locations are as large as 3,800 square feet. Starbucks has customized its product offerings, introducing the Green Tea Frappuccino Blended Crème beverage in 2002 and Starbucks bottled Frappuccino® coffee drinks into Chinese markets in 2007. Not all Chinese consumers are fans of Starbucks coffee. Cheng Xiaochen, an English teacher who likes to meet students at Starbucks, exclaims, "It's a good place to meet people, but the coffee is so bitter it tastes like Chinese medicine." Responding to Mr. Cheng and others like him, the company offers mint hot chocolate and red bean frappuccinos. Food offerings have also been customized to the Chinese market, with Hainanese chicken sandwiches and rice wraps.
NOT MY CUP OF TEA China is a country famous for tea. Over thousands of years, tea has been the beverage of choice in China. This, however, did not deter Starbucks from entering one of the fastest-growing consumer markets in the world. The first Starbucks opened in Taipei, Taiwan, in 1998 and the first mainland store was opened in Beijing in 1999. In an interview with CNN, Starbucks CEO Howard Schultz discussed the initial road bumps the company encountered in the tea-obsessed country. "We had to educate and teach many Chinese about what coffee was-the coffee ritual, what a latte was So, in the early years, we did not make money." However, by late 2016 there were over 2.300 stores in China, and Starbucks announced a goal of 5,000 by 2021, opening one new store every day for the next five years Starbucks analyzed the Chinese market and found that their brand was valued not only for their food and beverage offerings but also for the atmosphere of Starbucks stores. Chinese consumers enjoyed the opportunity to meet with friends and business partners in a comfortable location and appreciated the upbeat music and chic interiors. While kiosks have become popular in the United States, some Chinese Starbucks locations are as large as 3,800 square feet. Starbucks has customized its product offerings, introducing the Green Tea Frappuccino Blended Crème beverage in 2002 and Starbucks bottled Frappuccino® coffee drinks into Chinese markets in 2007. Not all Chinese consumers are fans of Starbucks coffee. Cheng Xiaochen, an English teacher who likes to meet students at Starbucks, exclaims, "It's a good place to meet people, but the coffee is so bitter it tastes like Chinese medicine." Responding to Mr. Cheng and others like him, the company offers mint hot chocolate and red bean frappuccinos. Food offerings have also been customized to the Chinese market, with Hainanese chicken sandwiches and rice wraps.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON