1) In my opinion, the key factors Starbucks had to consider before opening shop in China were all based on one thing; Starbucks had to determine why the Chinese would go to a café. Since the majority of China’s population is tea drinkers, they had to figure out what they could do to bring tea drinkers into a coffee shop. One of these factors is the fact that Starbucks has determined its target market to be the young people in china coined “little emperors”. They appeal to these young people and their desire for change and sophistication. Another factor Starbucks uses to its advantage is the fact that the Chinese want a comfortable place outside of their small dwellings where they can meet with family and friends. Starbucks capitalized on this by creating larger meeting areas than their North American stores. They made these areas comfortable and cool places for the people to get together and have a latte. Another important factor is that Starbucks has more food items on their menu such as duck sandwiches, and green tea cheesecake. Starbucks is not just a drink in china it is a place to meet and look modern.
2) China is a dictatorship so change to how a business operates can happen overnight. One of the key things Starbucks had to do to bring their brand to China was they had to find a Chinese partner that would understand the political and business markets in China. They did this by authorizing local companies to use their brand and the partnering with them. Starbucks started small in China buy only receiving royalties on the licenses, but in 2006 they started buying up shares so they could have more control over their company. China entering the World Trade Agreement in 2001 made buying out their partners and going at the business on their own a lot easier.
