Chinese Media and Starbucks High Prices

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Research question:
Is Starbucks high pricing strategy the appropriate positioning in the Chinese market?

Introduction
Starbucks is the largest American company. It has about 20,900 shops all over the world. Starbucks it’s a company that its main purpose isn’t to sell their coffee, instead, Starbucks tries to sell the essence of “feeling at home”.
The company is facing legal issues with china due to their increasing prices on every single product. Chinese media is harshly criticizing Starbucks for its prices. Starbucks is being accused for charging 50% more for some of its products in china than in other countries in the world.
Starbucks according to this problem, said that the cost in every country vary because of different costs, labor, commodities, real state and infrastructure investment.
My paper is going to analyze whether Starbucks has the right to increase the prices in china due to their market, or is Starbucks increasing prices unfairly because of the rapidly increasing economy in china. I will analyze both parts of the story and will use two specific business functions; human resources and finance. I will also compare the prices and expenses of the united states and China.

Findings
The taxes in China depend on the income of each person. If a person gains more, then they will be obligated to pay more taxes. The taxes in the United States depend on the situation and the income that each person has.
Electricity, heating, water garbage etc. is about 163 dollars in the United States. Electricity, heating, water garbage etc. is about 56 dollars in china.
Internet in the United States is 46 dollars.
Internet in china is 21 dollars. Rents in the United States on the city center are 982 dollars per month. Rents in c...

... middle of paper ...

...Jan. 2014. .

"SBUX Company Financials."NASDAQ.com. N.p., n.d. Web. 30 Jan. 2014. .

"Starbucks' pricing furor brings tempest in a coffee pot- News- China Daily Asia."Starbucks' pricing furor brings tempest in a coffee pot- News- China Daily Asia. N.p., n.d. Web. 30 Jan. 2014. .

"Starbucks Is Criticized by Chinese State Media for Higher Prices." The Wall Street Journal. Dow Jones & Company, n.d. Web. 30 Jan. 2014.

"SWOT analysis of Starbucks." Starbucks SWOT analysis 2013. N.p., n.d. Web. 28 Jan. 2014. .

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