Companies Like Starbucks Entering the Chinese Market

The question that has emerged of late regarding the Chinese market is not whether any company should enter the market but rather when and how best to do it. But entering the Chinese market requires a careful understanding of the Complex Chinese market since any strategy which ignores the culture and practice of the Chinese people is likely to fail. The Chinese have an attitude different than that of Western consumers and to use similar strategies as those used in the West is recipe for failure. There is nothing wrong with companies like Starbucks entering the Chinese market and opening as many stores as possible since the Chinese market is the biggest growing economy in the world and the opportunities for growth are unlimited.

Starbuck has invaded the Chinese market with zeal and they have succeeded not only in penetrating but becoming a market leader in the restaurant business. They have studied the Chinese culture and have adapted heir operations to suit the preference of the Chinese people. They have therefore escaped the fate of companies like Groupon who failed to grow in profitability and had to abandon their Chinese operations. China has executed several political and economical reforms which have liberalized the Chinese market and grants foreign companies the right and freedom to operate and expand so long as they adhere to the law (China Business, 2006). The growing urban development provides companies with an urban population with increased disposable income and a ready market for leisure and luxurious products (McEwen 2006).

An analysis of the Chinese culture and the prevailing political and economic situation shows that there is nothing ethically or legally wrong with companies like Starbucks entering the Chinese market. In fact, these companies provide employment opportunities and therefore raise the living standards of the Chinese labor. Current trends and available statistics demonstrate that Starbucks and others like Macdonald will continue to expand until their stores are recognizable in all towns of China.

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