Starbuck's Best Move: China
Starbucks first entered the China market in 1999, where many people assumed it would fail on the presumption that Chinese people drank tea and tea only. What was seen by many as a "first mover disadvantage" was actually the exact opposite. Starbucks saw the opportunity in the newly emerging middle class, and acted on it. They didn't attack the tea drinkers by trying to impose coffee upon them, but rather added specialty tea drinks to their menus and focused on brand awareness, not coffee consumption marketing. This coupled with the newly emerging middle class allowed Starbucks to capitalize on the rapidly changing conditions of the Chinese markets.
Starbucks' Chinese markets have seen tremendous success over the years. In March of 2017, Starbucks announced it had opened more than 2,600 in China since its first opening in 1999. In other words, 10% of the companies stores now operate in China. Had they not capitalized on this global opportunity, they would have missed out on more than $2.9 billion in sales in 2016 alone. Their success here is the direct result of a successfully executed transition from threat to opportunity.
Source: Quartz |
Starbucks' Chinese markets have seen tremendous success over the years. In March of 2017, Starbucks announced it had opened more than 2,600 in China since its first opening in 1999. In other words, 10% of the companies stores now operate in China. Had they not capitalized on this global opportunity, they would have missed out on more than $2.9 billion in sales in 2016 alone. Their success here is the direct result of a successfully executed transition from threat to opportunity.
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