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Founded in 1971, Starbucks Coffee is the world’s leading specialty coffee retailer and bakery. It was ranked 131 in the Fortune 500 in 2017 and ranked 310 in the Fortune 500 in 2007. In the last ten years, In the past decade, financial performance has been excellent. The success of Starbuck is not by luck, but by its successful business strategy.

One of the key success factor of Starbuck is the brand image and the culture. Brand is not only a product logo, but also has its own content, the brand is a symbol of the specific cultural significance. From the brand name of Starbucks, you can clearly define its target market position: not the general public, but a group of rich, with a focus on enjoyment, leisure, advocating knowledge and respect for people-oriented urban white-collar workers. Starbucks people think: their products are not just coffee, coffee is just a carrier. And it is through this carrier of coffee, customers can experience the Starbucks unique style. The consumption of coffee is largely a sentimentally cultural expenditure. What is needed for cultural communication is that the environmental culture created by a coffee shop can infect consumers and form a good interactive experience.

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The other key success factor is the expansion strategy. According to different market conditions around the world to adopt a flexible mode of investment and cooperation. Based on the proportion of Starbucks headquarters in Starbucks around the world, Starbucks has four main modes of cooperation with the rest of the world: (1) 100% stake in Starbucks, such as in the United Kingdom, Thailand and Australia; 2) 50% stake in Starbucks, such as Japan, South Korea and other places; (3) Starbucks account for less equity, generally about 5%, such as China’s Taiwan, Hong Kong, Hawaii and capital increase before the replenishment; ) Starbucks does not take a stake and simply licenses business, such as in the Philippines, Singapore, Malaysia and Beijing.

The comfort of the Starbucks environment is advantage of the brand but a disadvantage. Customers tends to sit for whole day with one cup of coffee. The cost of the operation is not only the coffee itself, but also the environments. It always a problem to find a seat in Starbuck, because it always full of people. With full seat occupied does not mean high sales. Some places that with high human traffic may limit the hours for sitting. The other issue is the long queue at the counter. One way to solve this problem is to implement ordering through smart phones. This will improve the convenience of ordering.   

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