International Opportunities - Starbucks opened its first store in Tokyo, Japan in 1996, and today it operates 24,000 retail locations in 70 countries. The chain has grown exponentially during its lifetime and has aspirations to open 500 new stores per year in China through 2021. 

1)How does Starbucks identify basic appeal?

2) Explain the considerations that Starbucks has in assessing the national business environment of China as it expands. What are the cultural, political, and economic forces impacting their decision?

3)How does Starbucks measure and select the market site? Why do you think Starbucks chose China?

4)What are some of the steps Starbucks must take in selecting the market or site for their new locations?

5)What secondary and primary research do you think Starbucks uses in their evaluation?

6)What are some examples of other companies that you believe have similar opportunities for expansion in the global market? Why?

1.Starbucks uses the brand appeal to identify its customers and target them. It usually takes advantage of the value and quality of its products which people pay for their luxurious services. Through this, the company get huge profits from their clients who value luxury that is available in the services offered by the products of Starbucks.
2.  Various considerations Starbucks takes into account while assessing its national business environment in China include political, cultural, social and economic forces present in the country. These kind of considerations are very key to the business environment as they are the major influencing factor that determines the selling and buying of various products within the national business environment. There are several services in the business market that relies on the nature of politics and culture of the day. When there is political stability, the business markets run smoothly and very well promoting the selling and buying of various goods as opposed when the political instability is the order of the day where every kind of business would be disrupted. Various culture also promotes various business involving certain goods and services. The availability of various social classes is key to the business sector where everyone demands certain services depending on his or her social class. The economy of every nation has to be stable for a business to pick up well.

3.  Starbucks uses demographic and geographic market segmentation while selecting and measuring its market sites. It saw a strong potential of growth in China by regenerating its traditions, thus, it chose China for its expansion. China has a bigger number of individuals who are key in the business sector as they are potential clients. The market of various commodities is very wide in china because of its bigger population. There is high demand of services of Starbucks' products among chines who demographic ratio is quite higher that other nations.

4 When preparing and designing its marketing strategy for selecting market locations, it can use the success and strategies of its rivals. Porter's Five Forces Model can be used by Starbucks when selecting new market sites and recognizing the opportunities and threats present. Via its rivals, the company will gain a deeper understanding of the market's risks and opportunities through this model. 

5 Starbucks uses a number of primary and secondary analysis sources, such as suggestion websites, Instagram, and Twitter. among others. The company's secondary approach include Instagram, Facebook, Reddit, and Twitter. Via these platforms or networks, it learns about the customer's views and comments about the brand, and thus receives different feedback that can help the brand improve. Today, many businesses rely on social media to get data and many individuals spend a lot of time exchanging ideas on those sites.

 Starbucks' primary research tool for assessment is the "My Starbucks Idea" platform, which it introduced in 2008. This was, at the time, part of the Transformation Strategy of the organization to transform the companies agenda. Employees, clients, and prospective customers can all go to the website and post proposals, updates, or suggestions. Anything that the company is doing against its objectives will be addressed and in so doing, they will work on rectifying gradually.

6 Some of the other firms with similar growth expansion prospects in the global market include McDonald's and KFC. One of the key reasons for this global opportunity is that the political, economic and cultural influences of different countries are known, recognized and thus analyzed by these firms. By so doing they analyses what should be done and implement them immediately. 

Step-by-step explanation

References

Han, G. K., & Zhang, A. (2009). Starbucks is forbidden in the Forbidden City: Blog, circuit of culture and informal public relations campaign in China. Public Relations Review, 35(4), 395-401.

Susanty, A., & Kenny, E. (2015). The relationship between brand equity, customer satisfaction, and brand loyalty on coffee shop: Study of Excelso and Starbucks. ASEAN Marketing Journal, 14-27.

Taecharungroj, V. (2017). Starbucks' marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), 552-571.

Starbuck, W. H., & Milliken, F. J. (2018). Challenger: Fine?tuning the odds until something breaks. Journal of management studies, 25(4), 319-340.