ECONOMIC FORCES – SINGAPORE
According to US Department of State in 1990, Singapore, otherwise known as the Lion State, has an annual growth rate (1998 in real terms) of 11 percent. The country’s per capita income is $8782, which is the third highest in Asia after Japan and Brunei. However, Singapore relies heavily on industry with the industrial sector (including food and beverages) making up above 17 percent of Singapore’s real GDP. It imports about $44 billion in crude oil, machinery, manufactured goods, and food stuff from the United States, European Community, Malaysia and Japan. In addition, Singapore is constantly looking for new products and new markets to drive its export – ...view middle of the document...
With this in mind Starbucks has plans to invest $10 million in developing its Asian operations and up to $20 million with its joint venture partners in Asia.
SOCIO-CULTURAL FORCES – SINGAPORE
Singapore has one of the best living conditions in Asia. In 1999, its per capita GNP was $ 27 480. Furthermore, Singapore is known for its diversity. There are 3.4 million Singaporeans: Ethnic Chinese, Malays and Indians make 77 percent, 14 percent and 7 percent of the population respectively. The most practiced religions are Buddhism/Taoism (53.9 percent), Islam (14.9 percent), Christianity (12.9 percent) and Hinduism (3.3 percent). The main Languages are Malay, Chinese (Mandarin), Tamil and English. English is the Language of administration, whereas Malay is the National Language.
With a moderately high cost of living, Singaporeans are able to indulge in luxury goods. Much of Singaporeans entertainment is influenced by Western Culture. For instance, many theaters show Broadway Musicals such as Les Miserables and feature Pop Concert artist like Michael Jackson. Television Programs are in English, Chinese, Malay and Tamil. In 1992, pay TV channels such as CNN, Movievision, HBO and Chinese Variety were introduced.
Singaporeans are known to indulge themselves with food. So discriminating have the Singaporeans become on the subject of quality and price that eating has become a national obsession. Singapore has an array of restaurants, coffeehouses, fast food outlets, and food centers that are easily accessible and offer a variety of foods at affordable prices. Most of these food places are not air-conditioned except for those located in stopping complexes. However, eating in an air-conditioned restaurant, regardless of income level, is an affordable luxury. “The average lynch or high tea-buffet spread offering a wide variety of dishes is available at many hotel coffee houses and restaurants, and its cost about $15 (Singaporean Currency) or more per person. Most restaurants and coffee houses impose 10 percent service charge, but tipping is not encouraged.”
COMPETITIVE ADVANTAGE – SINGAPORE COMPETITORS
Starbucks chose Singapore for its entry in the Southeast Asian market because of highly “Westernized” ideas and lifestyles it had adopted. Some have described Starbucks as another American icon, like McDonalds. Some even say that Starbucks has created an American coffee cult. Slowly but...