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Starbucks’s China Delivery Venture with Alibaba
IBUS2101 - International Business Strategy
11 Pages • Essays / Projects • Year: Pre-2021
This essay will first discuss Starbucks’ company overview, including the company’s objectives, its Chinese development timeline and the challenge it faces in the Chinese market as well as the corresponding collaborative strategy with Alibaba Group. Then using the OLI theoretical Framework to evaluate Starbucks’ new development. Probe into the advantage and rationale of Starbucks’ alliance with Alibaba Group from aspects of ownership, location, and internalization. Starbucks Corporation is an American coffee company and coffeehouse chain founded in Seattle, Washington in 1971. In the year 1993, Starbucks went public. While Starbucks initially focus on their domestic market. Three years after listing, they opened their first store outside North American in Tokyo, Japan. As of the year 2017, Starbucks operates over 27,000 locations worldwide. It leaped into the Chinese market in 1999. After two decade’s blooming development, there are now 3,400 stores in over 140 cities across the country (Starbucks, 2018).
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