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    Intb 200 Powerpoint Starbucks

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    Neha Shariff
    Starbucks is proposing to expand into Vietnam by opening locations in Ho Chi Minh City. Vietnam is an attractive market as the 2nd largest coffee producer globally and has experienced strong economic growth. A SWOT analysis identified Starbucks' strengths in quality products and services but also weaknesses in higher prices. Entering Vietnam represents an opportunity to tap into an untapped market but there are threats from local competitors offering affordable alternatives. The proposal recommends a joint venture strategy initially targeting students, office workers and tourists in HCMC to take advantage of Vietnam's growing economy.

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    Intb 200 Powerpoint Starbucks

    Uploaded by

    Neha Shariff
    154 views17 pages
    Starbucks is proposing to expand into Vietnam by opening locations in Ho Chi Minh City. Vietnam is an attractive market as the 2nd largest coffee producer globally and has experienced strong economic growth. A SWOT analysis identified Starbucks' strengths in quality products and services but also weaknesses in higher prices. Entering Vietnam represents an opportunity to tap into an untapped market but there are threats from local competitors offering affordable alternatives. The proposal recommends a joint venture strategy initially targeting students, office workers and tourists in HCMC to take advantage of Vietnam's growing economy.

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    Starbucks is proposing to expand into Vietnam by opening locations in Ho Chi Minh City. Vietnam is an attractive market as the 2nd largest coffee producer globally and has experienced strong economic growth. A SWOT analysis identified Starbucks' strengths in quality products and services but also weaknesses in higher prices. Entering Vietnam represents an opportunity to tap into an untapped market but there are threats from local competitors offering affordable alternatives. The proposal recommends a joint venture strategy initially targeting students, office workers and tourists in HCMC to take advantage of Vietnam's growing economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    154 views17 pages

    Intb 200 Powerpoint Starbucks

    Uploaded by

    Neha Shariff
    Starbucks is proposing to expand into Vietnam by opening locations in Ho Chi Minh City. Vietnam is an attractive market as the 2nd largest coffee producer globally and has experienced strong economic growth. A SWOT analysis identified Starbucks' strengths in quality products and services but also weaknesses in higher prices. Entering Vietnam represents an opportunity to tap into an untapped market but there are threats from local competitors offering affordable alternatives. The proposal recommends a joint venture strategy initially targeting students, office workers and tourists in HCMC to take advantage of Vietnam's growing economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    Starbucks and a Proposed Entry into Vietnam

    Presented by Sabrina Nguyen Tu Luu Dom Lewis

    The Proposal
    With so much of the coffee shop market in the US, we are simply trying to expand Starbucks to international markets, particularly Vietnam.

    Why Vietnam?
    2nd largest producer of coffee in the world Ranked 13th in the World in population Economic Growth
    Modern infrastructure Increasing education Free Trade Agreements w/ ASEAN and the WTO

    Vietnam - a potential market in area

    Ho Chi Minh City


    Population of 6,240,000 (2005) 28%-35% of Vietnams total tourism revenue
    Tan Son Nhat International Airport has 15-17 million visitors per year.

    HCMC makes up 1/3 of Vietnams GDP

    Wealth concentration

    SWOT Analysis
    Strengths Fine coffee and quality service. Ethical and Social Responsibility
    Starbucks Foundation

    Weaknesses Premium coffee and other products


    Higher prices

    Heavily Invested in the US


    Over 2/3 of stores in US

    Excellence as an Employer Starbucks is Global Flexible Company

    SWOT Analysis (cond)


    Opportunities Co-Branding
    Partnerships w/ other countries

    Threats Competitors
    Offering quality product at affordable prices. Competitors are also worldwide

    Strong Brand Recognition will create awareness in tourist areas.

    Saturation in the US

    Micro Analysis
    Reasons
    Untapped market
    Big tourist site Growing economy- the time is now

    Declining Sales in the US


    Economic Crisis Expansion of competitors Saturation of Starbucks in the US

    Macro Analysis
    Tropical lowlands, hills, and densely forested highlands Waterways Gulf of Thailand and Gulf of Tomkin Red River Delta Mekong River Delta Major Industries Agriculture Wet rice, coffee, tea, cashews, etc Mining Manufacturing

    Macro Analysis (cond)


    Population- 86,967,524 (July 2009 est.) Government Communist State Heavy involvement in Economy Increased Intl trade Create more jobs Joined Trade organizations

    Economy
    GDP
    PPP- $241.8 billion (2008 est.) Growth Rate- 6.2% (2008 est.) Per Capita- $2,800 (2008 est.)

    Unemployment Rate- 4.9% (2008) Inflation Rate- 24.5% (2008) Exchange Rate- Dong 17,185: $1 USD

    Trade Organizations
    WTO ASEAN APEC

    Major Trade Partners


    China, US, and Japan

    Attitude Toward American Business

    Entrance Strategy
    Joint Venture Foreign Direct Investment is very risky
    Intellectual Property Rights a concern w/ foreign investors Dual price system Corruption High Corporate and Personal Income Taxes High level of competition

    Domestic Competitors: Trung Nguyen Coffee Company Vina-Cafe Vietnam National Coffee Corp Sinh Thai Corp. An Giang Coffee Corp. Vinamilk Corp. Foreign Competitors in Vietnam: Nestle Corp Unilever Corp High Land Coffee Corp Dutch Lady Corp

    Join venture strategy


    The only coffee company issuing stocks and selling franchises Local brand recognition Widespread retail distribution network

    Entrance Strategy (cond)


    Promotional Strategy
    Target Students and office worker w/ discounts High Traffic Tourist areas Prestige as a coffee shop

    Conclusion
    Enter the Vietnamese market via Ho Chi Minh city Although Vietnam is a Communist State, international trade has increased from the 90s until now. Target the student population , office workers and tourists As a result, Vietnams GDP will continue to grow and disposable income will increase.

    Questions and Comments

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