Starbucks and Overcoming Cultural Differences By Cody Van Ryn

Background 21,000 locations nationwide 64 different countries First overseas location opened 25 years after first store. Hong Kong 1/3 of locations overseas “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day.” Chairman Schultz

Locations US- 12,000 Canada- 1,400 China- 1,300 Japan- 1,000 UK- 800 Mexico- 400 Taiwan- 300

Expansion to China 1300 stores in 48 cities Partnered with 3 regional partners No advertised threat on tea Introduced coffee drinks with ingredients like green tea “East meets west”

Chinese customers were hooked quickly and demand created Starbucks developed flavors more pleasing to people in China Regular coffee flavors don’t have a high demand. The Chinese customers seem to enjoy sweeter flavors.

Young Chinese people are becoming more interested in western culture. Starbucks sees this and promotes it with western music, design. Starbucks is seen as positive

Seattle Starbucks

China Starbucks

Expansion to China Middle class growth Dine in service rather than take out More possessions equals more well-off Added luxury and raised the price

Bibliography get-china-right/2/ starbucks-secrets-of-china-success/ /1 the-West-Has-Impacted-China world/ Luxury aspx china/