First of all Starbucks had to well-define its target market to know who they were going to sell.
Chinese culture was a key environmental factor that Starbucks had to considerwhen opening its first store in 1999. They must considered factors as the socials and demographics.
Social factors includes attitudes, values and lifestyles, it is the most important because itinfluence the products people buy, the prices paid for products, the effectiveness of specific promotions and how where and when people expect to purchase the products.
Demographic factors are alsosignificant to incurs a new market because the basis for any market is people and demographic characteristics are strongly related to consumer buyer behavior in the marketplace.
China wasn’t interestedin the product Starbucks was selling: coffee. It wasn’t a part of their culture to grab coffee on the way to work or hang out with friends in coffee shops afterwards. Starbucks had to find a way tocreate demand for a beverage that few Chinese were familiar with or had a taste for.
2. Discuss the key political and legal factors Starbucks had to consider in the Chinese marketplace. What arethe risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies?
China stills being a communist countrythat has only recently opened its borders to foreign investment. Although the Chinese government is now friendly with United States businesses, analyzing and knowing that with one-party dictatorshipeverything could change overnight with a new regime that might decide to close the marketplace to foreign investors or even nationalize properties. Perhaps the most important legal factor occurred...