Global Growth Strategy of Starbucks

Through its strong global brand representing the American culture, Starbucks appeared in many countries around the world through the company’s aggressive expansion strategy. While the company has proven its resilience amidst the challenges it faced in different locales, it also felt the strong pressure from the global economic crisis. Now, Starbucks needs to heighten its global expansion strategy amidst the impact of the downsizing in the United States on its global expansion especially in China.

Starbucks considers a number of factors in deciding its expansion. One factor is the size of the potential market (Clark, 2008). As an aggressive player, Starbucks seeks not only to enter new markets but also to dominate these markets. Starbucks first expanded into huge markets such as the UK and France in Western Europe to India and Indonesia in Asia. Just recently, Starbucks also expanded into China because of its large potential market. Another factor is barriers to entry relative to the expected returns (Clark, 2008).

As a strong American brand, Starbucks considers how it can introduce and integrate this brand into the local culture. The company is flexible in its ownership or operating structures for different markets to achieve acceptance by consumers (Haoting, 2009). Starbucks needs to provide products and services as served in the United States and patronized by the local culture while at the same time accommodating cultural norms.

In China, expansion into the country also necessitated consideration of the means to introduce a high-end or premium American brand into this culturally solid country that is just starting to learn about other cultures. Starbucks established a coffeehouse in Beijing in 1999 and since then the number of branches in main cities is increasing (Haoting, 2009) mainly due to the company’s efforts to integrate its brand into the local culture.

In the expansion of Starbucks into China, the Chinese government plays an important role. Government regulation is strong (Adamy, 2006; “Starbucks and China”, 2007) that Starbucks needs to obtain government approval in implementing an in-store payment card or in importing certain flavoring such as white-chocolate or flavoring.

These restrictions limit the flexibility of Starbucks in operating in China. To mediate this problem, Starbucks hired locals as executives for its operations in China to help the company navigate through the intricacies of the Chinese bureaucracy (Adamy, 2006). By doing so, Starbucks can focus on the market. Read about Starbucks HR strategy

Starbucks engages in a number of entry strategies to suit the market. In China, Starbucks needed to be creative. One of its entry strategies is to as a premium brand (Clark, 2008) to differentiate it from direct competitors in the coffee industry and local competitors. As such, Starbucks has drawn young people as its primary market in China. Another strategy is to adapt to the local culture to an extent that does not significantly alter the brand that Starbucks maintains globally.

Instead of focusing on the coffee, the thrust of Starbucks marketing in China is to highlight the coffeehouse as a location for gatherings since food and beverage shops in China address this purpose (Adamy, 2006). Still another strategy is the engagement in local causes to gain the acceptance of the local communities such as by sponsoring educational programs as part of its corporate social responsibility (Starbucks, 2009). Overall, the entry strategy to Starbucks in China is to negotiate the acceptance of its brand by winning the local community and coming in strong by distinguishing its brand.

The strategic choice of Starbucks has always been balancing the integrity of its global brand and accommodating local contexts. In China, Starbucks succeeded in gaining government approval to establish a branch in the Forbidden City and in the great wall.

However, Starbucks closed its branch in the Forbidden City following a change in policy requiring all shops within the city to fall under the management of city administrators (“Starbucks and China”, 2007). Starbucks objected because the company wants direct management of its branches in China, in recognition of the growth potential of the market and its key role in global expansion.

Following the downsizing in the United States (Waite, 2008) Starbucks is relying on global expansion more than ever to offset this setback. With the market saturation in the United States and the recession, Starbucks needs to boost its international growth, which means it has to develop its foreign markets. Moreover, Starbucks also needs to continue finding cost-effective sources of coffee beans and other raw products.

Now, Starbucks is building China not only as a market but also as a source of coffee beans. The company is working to find locations and means of expanding branches in China as well as overseeing the production of raw coffee beans in China to ensure that this can meet a volume needed for its international operations (‘Starbucks in China”, 2007). Many executives from the United States moved to China to manage its expansion.

The global economic crisis and the downsizing of the company in the United States heightened the importance of its global expansion, especially in China. Starbucks has concentrated its efforts in developing China not only as a market but also as a source of raw products needed in its global operations. With too much at stake, Starbucks needs to master or perfect its expansion strategy in China to achieve its goal of making the market possibly a new base for its global operations.


Adamy, J. (2006). Starbucks bets on China’s new social mobility. Pittsburgh Post-Gazette. Retrieved August 4, 2009, from

Clark, T. (2008). How Starbucks colonized the world. Times Online. Retrieved August 4, 2009, from

Haoting, L. (2009). Starbucks pushes China sales with local brew. China Daily. Retrieved August 4, 2009, from

Starbucks. (2009) China education project. Retrieved August 4, 2009, from  

Starbucks and China. (2007). Retrieved August 4, 2009, from 

Starbucks in China. (2007). New York Post. Retrieved August 4, 2009, from  

Waite, A. (2008). Starbucks to lay off 12,000 workers. Retrieved August 4, 2009, from

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyHomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Business and administrative studies
Customer 452773, March 3rd, 2023
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Thank youuuu
Customer 452729, May 30th, 2021
Business and administrative studies
always perfect work and always completed early
Customer 452773, February 21st, 2023
Business and administrative studies
excellent work
Customer 452773, March 12th, 2023
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Thank you!
Customer 452545, February 6th, 2021
Business and administrative studies
excellent job
Customer 452773, March 12th, 2023
Customer 452591, March 18th, 2021
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes


eskişehir escort
- Korsan taksi Antalya


eskişehir escort
- Korsan taksi Antalya