Starbucks Glocalization Strategy After learning the International Business, I think Starbucks’ glocalization is their most successful strategy in their business. Though the local people think Starbucks’ glocalization influenced their local business and even destroyed some local coffee business. In my opinion, because of Starbucks insist their own way to expand their abroad market, this make they have today’s big success and become the cultural icon.
The international business strategies are influenced by several factors, such as the industry structure and drivers, competitive dynamics, economic conditions, political, legal, and regulatory environment, technology standards and trends, cultural orientations and customer expectations. Glocalizaiton help the Starbucks combined the globalization and localization together. “Wall-to-wall” is one of their strategies to expand and maintain their market shares in abroad markets.
They have clear understanding on what is their business structure and competitive advantages. Starbucks tried to market the ‘Starbucks Experience’ in abroad in terms of its ambience, product quality and customer’s service. According to Starbucks business in China, before Starbucks entering a new global market, they did research on culture diversities. Contrary to Starbuck’s normal trend of maintaining strict standardization techniques, their strategy in China adapted the business to the local culture and local market.
They used several localization strategies to gain the confidence and reputation from the local customers, such as hired Chinese farmers to work in the process of coffee cultivation in Yunnan province; because China is famous for its traditional tea drinking culture and it controlled Chinese beverage market, they add some new flavors into their coffee on the existing menu.
Starbucks usually share their coffee passion and expertise with customer by encouraging them to try the sample and premium coffee in the abroad markets. It is a good time for Starbucks develops their glocalization strategy and focus on how to balance the culture diversities. Customer responsiveness will help them a lot in building and maintaining the market shares.