Global Brand, Local Taste: Analyzing Starbucks' Glocalization Strategy

This report provides an analysis of Starbucks' glocalization strategy, specifically focusing on its successful expansion in China. The study examines how Starbucks has adapted its products, such as introducing coffee-free beverages and traditional delicacies like Zongzi, to cater to local tastes and...Read More

mANAGEMENT
GLOBALIZATION

GLOBALIZATION 1
The term “Glocalization” is formed through the combination of two words namely the
"globalization" and "localization." This is generally used to describe a product or a service
that is developed at a global level accommodating the needs of local consumers and the
market. The chief significance of the glocalized products is that they are naturally more
appealing to the end consumers as the same considers the local laws, customs, or consumer
preferences in their designing (Hebron & Stack Jr, 2016). In addition, it allows the brands to
take advantage, of the economies and international growth while minimizing the reliance on
one type of markets or customers. The work is aimed at analyzing the Starbucks
Glocalization.
Starbucks is known to be one of the renowned brands that have tailored its individual
locations to local contexts. The brand has is engaged in a dual technique of maintaining the
global brand consistency and involved the local flavours to compete with the neighbourhood
coffee places. For instance, in China, the company contested the coffee dislike with the
introduction of Red Bean Frappuccino which is a coffee-free beverage. In addition, it served
"Zongzi” a traditional delicacy in which rice is wrapped in a reed during the Dragon Boat
Festival. Additionally, the brand is known to serve green and aromatic teas in Beijing. In
addition to the incorporation of the local flavours in the menu, the brand has made sure to
construct the infrastructure of its stores as per the local customs and traditions.
In terms of the analysis, it can be stated that the success of the company Starbucks in
China can be attributed to well-executed collaborations with Chinese partners, adoption of
the local technologies, superior supply chains and offering local items on its menu. The
company has entered into a partnership with Alibaba in 2015, where it had opened its first
online store on Alibaba's Tmall, and then, as part of the 11.11. Shopping Festival. By the year
2017, the company had enabled the Alipay mobile payment platform across its 2,800 Chinese
store locations back then. The global characteristic in the move was to enable the consumers
to have luxury coffee experience and the local element being the aid of the local
technological partnership. The partnership is an effective move in terms of to complete
digitization of the Starbucks' business in China with the localized technology giant.
One of the chief characteristics of the Chinese Glocalization of the brand was the
establishment of the “Partner Family Forum,” “Starbucks China Parent Care Program” and
the other, on the lines of the Chinese values towards parents and families. In addition, it is
essential to note that China has a high value for the inside circles which is comprised of

GLOBALIZATION 2
family, friends and families. Thus, capitalizing on the same, the brand has widened its seating
spaces to accommodate the crowds, noise and lounging unlike in the US where the stores are
often characterized by lone laptop seats and users. To put in terms of global traits, the
company has still positioned itself as the premium coffee brand in China as in the rest of the
parts of the world. In addition, the brand charges 20 percent higher than compared to other
parts of the world. The outlets are set in the high-end locations including the luxury malls.
As per the discussions conducted in the previous parts, it can be stated that the brand
Starbucks has efficiently expanded its business operations in China on the lines of
Glocalization. The company has not only revamped its products according to the local tastes,
but also the infrastructure and practices and effective partnerships with local suppliers.

GLOBALIZATION 3
References
Hebron, L., & Stack Jr, J. F. (2016). Globalization: Debunking the myths. United States:
Rowman & Littlefield.