Starbucks in Tiawan
History of Starbucks
The first Starbucks was opened in Seattle in 1970s by three partners: Jerry Baldwin, Zev Siegel and Gordon Bowker. The name of Starbucks came from Herman Melville’s Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the world’s finest coffees to the cold, thirsty people of Seattle. (Starbucks Coffee Company, 2009)
Entrepreneur Howard Schultz joined the company in 1982. While taking a business trip in Italy, he visited Milan’s famous espresso bars. He was so impressed with their culture and popularity, he thought he ...view middle of the document...
(President Starbucks Coffee Corporation, 2009.)
Starbucks Coffee International Inc. is the Starbucks Coffee Company’s licensing firm. Howard Schultz, the CEO in the Starbucks Coffee Company, focused on cultural characteristics and the persistence of quality to run the business. He also emphasized on respecting consumers and employees, and insisted on purchasing the world’s best baked beans, providing the best coffee products and comfortable places for customers. Starbucks Coffee which Howard Schultz ran has become the world’s leading premium coffee brand. (President Starbucks Coffee Corporation, 2009.)
Taiwan’s Uni-President Enterprise was founded in Yongkang in Taiwan in 1967. C. Y. Kao, the president in Uni-President Enterprise leads the company from traditional food towards full production and sales to satisfy all the needs of consumers. Uni-President Enterprise is also one of the largest conglomerates in Taiwan. The company owns include food, beverages, finance, logistics and distribution. (President Starbucks Coffee Corporation, 2009.)
The President Starbucks Coffee Corporation purchases the high-quality baked beans around the world and selects local excellent people to train them, offers the high-quality coffee and service for consumers in Taiwan. In 2002, the President Starbucks Coffee Corporation has already had 100 stores in Taiwan. The store has spread from Taipei, Taichung, Tainan, and Kaohsiung etc. (President Starbucks Coffee Corporation, 2009.)
Challenges which Starbucks meets in Taiwan
Starbucks has very succeeded in Taiwan. So far, there are more than 200 Starbucks coffee stores in Taiwan. But last couple of years, Starbucks seems to meet some big challenges in Taiwan.
The first challenge is that McDonald’s has begun to sell ground coffee in recent years. The quality of coffee has been improved vey well. Moreover, the coffee price is cheaper than Starbucks coffee. Besides, lots of McDonald’s stores decorate some areas to become café style. Consumers who drink coffee in McDonald’s store would be very enjoyable.
The second challenge is that Seven-Eleven convenience stores have also sold ground coffee in Taiwan. The quality of coffee is not bad, and the price is cheapest. For example, if I order a cup of medium latte, I need to pay $4 in Starbucks, $3 in McDonald’s, but just $1.20 in Seven-Eleven convenience stores. Therefore, the Seven-Eleven coffee is cheapest. Furthermore, there are more than 4,000 Seven-Eleven convenience stores in Taiwan. All of stores can sell ground coffee, so the amount of coffee they sell must more than Starbucks coffee. It is really a big challenge to Starbucks.
The third challenge is that Starbucks meet a big competitor - 85°C, which is also a chain of coffee stores in Taiwan. They offer coffee, cake and dessert which are cheaper than Starbucks coffee and dessert. Because of the low price, they attract lots of customers to go to their stores.
The final challenge is the economic...