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Strategy Formation & Implement_Week 6 Discussion (1)

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Q Review the article “Starbucks Ties Up With Alibaba to Deliver Coffee in China” (article is under Week 6 folder) and discus the following • For many years, Starbucks dominated premium coffee in China. Why? Why was Starbucks so uncontested for so long? • Which factors caused the competitive advantage of Starbucks in China to erode? Were these factors sudden and unexpected or were they inevitable? In fact, where was the chink in Starbucks' armor? What was the blind spot? • How is Starbucks trying to catch up? Does the envisaged strategic alliance make sense? Can Starbucks avoid being expropriated by its partner?

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The scene of premium coffee in China was dominated long by Starbucks in China with greater than 80 percent of the market in the year 2017. Starbucks had the market of China mostly since its first store was opened in the year 1999 in the nation. An explosion in the bigger cities of coffee-drinking was witnessed by China which was a nation of tea-drinking traditionally. The size of market of shops of specialist coffee has increased in China to $4.5 billion and there is an expectation that it will reach 50 percent by the year 2022 (Xiao & Lin, 2018).