The threats that are faced by the company pertain to the intense competition that it is facing form local and traditional coffee bars and cafes as well as the volatile coffee prices in the market. Moreover the controversy of the Forbidden City can also negatively affect the company in its operations in the future.
Strategic Alternatives and Recommended Strategy
Starbucks in China has faced problems pertaining to the culture of the organization and the history culture of the Chinese market. Due to this the company has been affected by the Forbidden City controversy in which the operations of the company store in the scared city is highly criticized upon by the Chinese. The alternatives that the company has to better position and present itself to the Chinese market is to incorporate the Chinese culture and tradition in its approach to business and dealing with customers while maintaining the service level and standards of its operations. For this the company can customize its menus to the Chinese market by offering flavorings of tradition Chinese herbs and teas with the Starbucks coffees as well as including tradition Chinese snacks like duck. Aside form this corporate culture in the region of China can be customized and more diversified so as to not offend the Chinese market with their operations.
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