Question
StarbucksinChina Asaremarkablecompany,StarbucksCoffeeCompanyhasgrownintoaglobalbrand sinceitsfoundingin1970inSeattle,theUnitedStates,concentratingonincreasing customersatisfactionbytreatingeachcustomerwithrespectanddignity.Nearly20 yearsagoinJanuary1999,StarbucksopenedtheirfirststoreinBeijingbasically introducingcoffeeculturetoChina.AlthoughStarbucksencounteredseveral challengesintheprocessofenteringtheChinesemarket.Theyhadsuccessfully expandeditsbusinessinover180citiesofChinaandopenedabout4400storefronts inthesecitiesby2020.Starbuckshasshownroutinelyimpressiverevenuegrowth. InfiscalQ42019,Starbucksreported$803millioninnetincome,arisefrom$756 millioninthisquarterlastyear.Theyalsosawrevenueriseto$6.75billionlast quarter,up7.1%fromtheirfiscalQ42018($6.3billion). StarbucksstartedwithfranchisingbusinessmodewhenitenteredChinesemarket.Of Starbucks'Chineseoutlets,30%werefranchises.ItsprimaryrivalinChinese marketisLuckin.WhileStarbucksoffersthewarmthandserviceofcafesdesignedas athirdspacebetweenhomeandoffice,Luckinisaboutefficiency:itsoutletsare cashless;customersorderinadvancethroughtheAppandthenpicktheorderupin thestore,withouthavingtowait,orbydeliverywithin18minutes;thepriceofacup ofLuckincoffeeismuchlowerthanthatofStarbucks(aboutRMB30).Inorderto maintainitsleadingposition,Starbuckshasadoptedaseriesoflocalizationmarketing strategies. ThecomplexityoftheChinesemarketsreflectedinthedifferencesinconsumer spendingpowerinlandisconsiderablylowerthanthespendingpowerincoastalcities ledtoregionalpartnershipstoaidinStarbucks'plansforexpansioninChina;the partnershipsprovidedconsumerinsightintoChinesetastesandpreferencesthat
StarbucksinChina
Asaremarkablecompany,StarbucksCoffeeCompanyhasgrownintoaglobalbrand
sinceitsfoundingin1970inSeattle,theUnitedStates,concentratingonincreasing
customersatisfactionbytreatingeachcustomerwithrespectanddignity.Nearly20
yearsagoinJanuary1999,StarbucksopenedtheirfirststoreinBeijingbasically
introducingcoffeeculturetoChina.AlthoughStarbucksencounteredseveral
challengesintheprocessofenteringtheChinesemarket.Theyhadsuccessfully
expandeditsbusinessinover180citiesofChinaandopenedabout4400storefronts
inthesecitiesby2020.Starbuckshasshownroutinelyimpressiverevenuegrowth.
InfiscalQ42019,Starbucksreported$803millioninnetincome,arisefrom$756
millioninthisquarterlastyear.Theyalsosawrevenueriseto$6.75billionlast
quarter,up7.1%fromtheirfiscalQ42018($6.3billion).
StarbucksstartedwithfranchisingbusinessmodewhenitenteredChinesemarket.Of
Starbucks'Chineseoutlets,30%werefranchises.ItsprimaryrivalinChinese
marketisLuckin.WhileStarbucksoffersthewarmthandserviceofcafesdesignedas
a"thirdspace"betweenhomeandoffice,Luckinisaboutefficiency:itsoutletsare
cashless;customersorderinadvancethroughtheAppandthenpicktheorderupin
thestore,withouthavingtowait,orbydeliverywithin18minutes;thepriceofacup
ofLuckincoffeeismuchlowerthanthatofStarbucks(aboutRMB30).Inorderto
maintainitsleadingposition,Starbuckshasadoptedaseriesoflocalizationmarketing
strategies.
ThecomplexityoftheChinesemarketsreflectedinthedifferencesinconsumer
spendingpowerinlandisconsiderablylowerthanthespendingpowerincoastalcities
ledtoregionalpartnershipstoaidinStarbucks'plansforexpansioninChina;the
partnershipsprovidedconsumerinsightintoChinesetastesandpreferencesthat
helpedStarbuckslocalizetothediversemarkets.InnorthernChina,Starbuckrunsas
ajointventurewithBeijingMeiDacoffeecompany.IneasternChina,itpartnered
withTaiwan-basedUni-President,andinsouthernChina,itworkedwithMaxim's
CaterersinHongKong.
Starbucks'competitiveadvantageisbuiltonproduct,service,andbrandattributes,
manyofwhichhavebeenshownthroughmarketresearchtobeimportantto
Starbucks'customersinChina.WesternbrandshaveanadvantageoverlocalChinese
brandsbecauseofacommonlyacceptedreputationforconsistentlyhigherquality
productsandservices,afactorthatestablishestheWesternbrandsaspremiumbrands
inthemindsofChineseconsumers.Therefore,thebaristasinChinawerechoosento
actedasbrandambassadorstohelpembedtheStarbuckscultureinthenewmarket
andensurethathighstandardsforcustomerserviceandproductqualityare
maintainedateachnewandestablishedlocalstore.
QUESTION
PleasediscussthekeycategoriesthatStarbuckscanuseindesigningratefencesto
achievepricecustomization.
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