China and Starbucks Evaluation of Term Paper

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The market for coffee is slightly counterintuitive for the Chinese market since coffee is not actually the beverage of choice in China -- the Chinese much prefer tea. What has become evident is that the typical Chinese middle-class individual will opt for a product that is less preferred, but of clear high quality if it is in the appropriate location for them to be seen while consuming the product. Being perceived as successful and as having good taste is of a very high priority to the Chinese middle-class, and as such the young businessman will generally opt to patronize a quality establishment that serves a product less desirable in his personal tastes than a less reputable establishment that provides what he would truly prefer. In a nutshell, the young, middle-class Chinese businessman will drink tea at home, but drink coffee at Starbucks in public.

Also considered in this evaluation are the legal system and its efficacy in China. One thing that needs to be very clear to the company wishing to launch its presence in China is that China is not America.

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It is still a country strongly and sometimes unfairly ruled by its government and legal systems. However, as stated before, the climate is in flux. Certain things previously forbidden have seen a slackening in monitoring and punishment because of the move toward democracy. The current government, though clearly interested in opening their market to the money of the West, does not seem interested in a complete democratic makeover, and so changes in this department will be slow at best, nonexistent at worst.

In summary, though there are many governmental and cultural obstacles that will need to be addressed while developing a plan to bring Starbucks to China, this research indicates that it can be an extremely successful venture. To achieve this success and to take advantage of China's dynamic middle-class, which is our primary target market, Starbucks must generate an image of quality, class, and a touch of "hip-ness." Starbucks has certainly been highly successful in precisely these veins in America, so it seems quite reassuring that we will be a grand success in China as well......

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