Essay about The Coffee Culture Of America

Essay about The Coffee Culture Of America

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Starbucks has been a critical icon in the coffee culture of America, formed in 1983 as the result of founder and CEO Howard Schultz deciding to replicate Italy’s coffee culture in America. The idea was that Starbucks would be the third place alongside home and work that society would frequent daily. Starbucks today has more than 19,000 stores in 62 countries around the world and as a result has a considerable amount of opportunities to seize. It has not been easy however, as cultural barriers have proven to be Starbuck’s biggest obstacle despite amazing quality. One such nation where it has proven to be the most difficult on the cultural side has been China, despite having 550 international stores there. Backlash from the Chinese media and public due to Western influence forced Starbucks to create Chinese-themed products in response. Still, economic barriers are another factor in China as operating costs force the price of beverages to be 50 to 75 higher than American beverages. Chinese lower-income customers have been difficult to attract and even middle-income customers are upset from developments to increase prices to keep up with rising operating costs. Despite these setbacks in China, Starbucks has seen much success in neighboring country India. Political barriers contributed to this success due to the Indian government revamping laws that said only foreign businesses could operate if they partnered with domestic businesses in a 50-50 alliance. Starbuck’s decision to partner with Tata Global Beverages has allowed the American coffee business to have an easier transition into the market of India. Still, cultural and economic barriers with India are present as it is primarily a tea-drinking nation as well as having lower cost...


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...universally accepted around the world to drink. However, different forms, flavors, and lifestyles are what the coffee world is made up of and that is what Starbucks sometimes gets caught off-guard when they expand into foreign nations. Also, most nations don’t have the GDP like America does to afford Starbucks high priced coffee. This in turn turns customers off in the lower-class.

Recommendations for Starbucks is to be more culturally sensitive when expanding their franchise. They should keep their iconic icon when marketing overseas but design specific types of cafes per nation that makes customers feel right at home when they see the retail store and walk right in. Starbucks could also avoid the operating costs in areas like China by focusing on nation-oriented beverages and food that could be acquired locally without having to ship product input from overseas.

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