The internationalization strategy for Starbucks is to conduct
market research. Starbuck’s strategic decision to enter a foreign
market is purely based on market research. Starbuck’s market
research on the Chinese market indicated the below prominent
factors for Starbucks to enter the Chinese market:
- The attributes of the People’s Republic of China was identified
with the help of the extensive market research. The team found that
the middle class of China has readily accepted the Western culture
in contrast to their orthodox culture. Additionally, the market
research identified that the consumers in the Chinese market
purchased luxury goods to maintain their high lifestyles.
- Capitalism in the People’s Republic of China provides great
support for their citizens for maintaining a high quality
lifestyle. This is apparent in certain cities wherein the
government supports the citizen’s purchase of the luxury
goods.
- The market research identified that the Chinese market is not
one homogenous market. Hence, Starbucks caters to the different
markets (heterogeneous) by providing products as per the different
customer preferences.