Peter Alexander -- 18d Ohhhh that is such a great story. Short version. The entered China on 2000 and on doing so brought America. Coffee culture to the Chinese. Their operating model was exactly the same as everywhere. Large locations all over and convenient. They made a killing, sort of, for 20 years. Then the market evolved. Small boutique coffee shops sprang up like weeds. Everywhere. Two local companies took the fight to Starbucks as well and competed on price. And then there was the advent of boba tea. Starbucks was assaulted on all sides and HQ was oblivious until it was too late. Management last year agreed to to sell 60% of the Chinese operation to a local group and is now just a passive investor. Again, this is just the short version. A ton of great and gruesome details that occurred along the way. replyOhhhh that is such a great story. Short version. The entered China on 2000 and on doing so brought America. Coffee culture to the Chinese. Their operating model was exactly the same as everywhere. Large locations all over and convenient. They made a killing, sort of, for 20 years. Then the market evolved. Small boutique coffee shops sprang up like weeds. Everywhere. Two local companies took the fight to Starbucks as well and competed on price. And then there was the advent of boba tea. Starbucks was assaulted on all sides and HQ was oblivious until it was too late. Management last year agreed to to sell 60% of the Chinese operation to a local group and is now just a passive investor. Again, this is just the short version. A ton of great and gruesome details that occurred along the way.
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root 85280cff…a4c0 · depth 3 · · selected eef05d30…6c1c
China Evening MissiveNo longer optional. It is imperative that CEOs of every single serious multinational travel to China at leastannually. Recall last year when the Ford CEO was here. He left with a Xiaomi car and raved online about thequality.All companies irrespective of industry need to have an office in China if for no other reason than oppositionresearch. The future of global competition begins here. In China.Starbucks is the perfect case study of what will happen if you aren’t close enough to this market.https://www.motor1.com/news/792130/honda-reacts-china-supplier-strength/
what happened to Starbucks?
Ohhhh that is such a great story.Short version. The entered China on 2000 and on doing so brought America. Coffee culture to the Chinese.Their operating model was exactly the same as everywhere. Large locations all over and convenient. They made akilling, sort of, for 20 years.Then the market evolved. Small boutique coffee shops sprang up like weeds. Everywhere. Two local companies tookthe fight to Starbucks as well and competed on price.And then there was the advent of boba tea.Starbucks was assaulted on all sides and HQ was oblivious until it was too late.Management last year agreed to to sell 60% of the Chinese operation to a local group and is now just a passiveinvestor.Again, this is just the short version. A ton of great and gruesome details that occurred along the way.
what happened to Starbucks?