Starbucks has more than 17. 000 shops in over the universe ( following the information in 2010 ) including over 11. 000 in the United States. over 1. 000 in Canada. and over 700 in the United Kingdom Follow the the information of BusinessWeek. com. in 2010. The Brand Value of Starbucks is 3339 million U. S Dollar. Rank 97 in over the universe hypertext transfer protocol: //www. interbrand. com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010. aspx Employees 137. 000 ( 2010 ) Website Starbucks. com Presently Starbucks is present in more than 55 states.
But until 2011. Starbucks still have non come to VN. Our group think that Starbucks should come to VN through franchising method Why choose Viet Nam 1/ A suited theoretical account of development: In recent old ages. Vietnam has favourable conditions for concern activity * GDP growing averaging over 8 % * The economic state of affairs is stable * The buying power is rated extremely in the universe VietNam became officially the hundred-and-fiftieth member of WTO. It opens up a batch of chances for non merely VN’s enterprisers but besides other countries’ 1s 2/ Policies from VN authorities.
VN authorities encourage investings VN Laws allowed foreign endeavor operate comfortably in VN which it didn’t occur in the past 3/ Others Vietnam population is 82 million. among whom 2/3 are immature people In Viet Nam. people spend 70 % their income for devouring. particularly in nutrient ( Follow the information from The General Statistics Office ) Why choose franchising What is franchising? – & gt ; Starbucks chooses Franchising as its international entry scheme.
A franchise is a concern agreement where the developer/owner ( the franchiser ) of a concern construct grants others ( the franchisees ) the accredited right to have and run a concerns based on the franchiser’s concern construct. utilizing its hallmark. For complete franchising theoretical account. the franchisor portion and transportation of at least four types of “products” include: * Systems ( Strategies. theoretical account. direction procedure. marketing support … )
* Trade or concern secrets * Right to run under the Starbucks trade name * Products and services Franchising in Viet Nam With Vietnam’s entry into the WTO. it is expected that franchising activity in the state will increase markedly over the following few old ages. There are soon a smattering of major franchises runing in the state. including Kentucky Fried Chicken. Lotteria. Jollibee. Pho 24. Gloria Jean’s Coffees. Buntamita and Cartridge World. In the yesteryear. Vietnamese jurisprudence did non supply a clear footing for franchising agreements. basis for franchising to develop in Vietnam.
Reasons which Starbucks should take franchisng In fact. with the economic system state of affairs in VN. franchising brings a batch of advantages to both franchisor and franchisees Franchisor * Franchising reduces the hazard of investing into a new market for Starbucks. * Starbucks don’t need to hold a immense capital. Capital is ever one of the biggest jobs of any company. But with franchising system. the franchisors don’t need to worry about it because franchisees have to utilize the capital of them to spread out concern. non franchiser. * Franchising aid Starbucks entree the new market rapidly and do rapid enlargement over wide country.
In Vietnam market. particularly coffee market. you have to happen the manner to develop and turn continuously to vie with others. No development means that traveling back. It’s lucky that franchising system can assist you spread out. develop your concern rapidly. * Promote the trade name publicity strongly. With the enlargement rapidly of franchising system. it besides helps Starbucks to publicize Starbucks’s image widely when 100s of Starbucks’s shops appear everyplace.
Beside that. the advertisement cost will be shared for all shops. so Starbucks don’t have to pass much money to establish their immense advertisement runs * Maximize income. In franchising system. franchisor can gain a batch of money from franchisees ; from right of first publication cost. the cost for the right to run under Starbucks’s trade name. the net income of franchisees to raw stuffs which franchisees have to purchase straight from Starbucks * Most significantly. franchisees are motivated operators to make a good occupation.
Franchisees have to utilize the capital of them to run concern. So. it will be a great motive for them to work good Franchisees * Franchising primary benefit is risk minimisation.
Get downing a new concern is hazardous. Most surveies show that over 90 per centum fail within three old ages. The primary ground that the failure rate is so high is because the proprietors have to make many things. They have to hold a program to present their new merchandises or service. beside that they have to make operating program. selling program … to accomplish their end. All of them contain many hazards. And the retail merchant frequently don’t have a batch of experiences when they start a new concern. they have to pass a batch of clip to larn characteristic elements of each industry.
Franchising reduces hazard for these things. When you join a franchising system. franchisee will be trained. taught from experiences to successful secrets which franchisor has to pass a batch of clip to cognize. * Another benefits of franchising is the franchisee don’t have to travel through get downing measure when you have to make a batch of things. and pass a batch of money to last. to construct an image in consumer head. * The following benefit. the good known trade name names of franchisers are another ground of franchising to franchisees. Nowadays. there’re a batch of same merchandises in different trade names in market.
Therefore. constructing a celebrated trade name which everyone know and trust is a cardinal to last and success with any concern. With franchising system. franchisee is allowed to win a trade name which have a stable place in market. it is truly a large advantage for retail merchant * Maximize work force: the franchisee merely have to concentrate on concern operations. The remainder like schemes. selling process… will be built and transferred to franchisee by franchisor * Easy to borrow money from Bankss: Because franchise system was proven to be the safest concern system.
Therefore. it is easier for franchisees to inquire money from Bankss Aims Short-run: Assert trade name of Starbucks java in HCM metropolis country. Try to take Starbucks to go a familiar trade name in client head Long-run: Make a alone java civilization of Starbucks in VN. Lead Starbuck trade name go a criterion for java in Vietnam Target market and location Target market Based on our franchising scheme. our aims in long term and short term. Starbucks will aim consumers between the age of 18-50. with a specific concentration on officers and man of affairs. Demographic Age: 18-50.
Gender: Male and Female Income: Average to high income Occupation: Businessman. officers. pupils. intelligentsia Psychographic: Life Manner: For those who have deep experience about java Peoples who want to take for themselves some merchandises that have trade name name that show their degrees. For people who value quality and service above money Peoples who want to bask Starbucks coffee’s civilization Location Follow our aims in short term and long term. Starbucks’s shops have to happen dumbly in Ho Chi Minh City. particularly in: Main streets and chief territories where have high life.
Plazas and edifices Big universities. particularly international universities through Starbucks’s stables ( Most of them serve takeout java merely ) Analyze Environment in VietNam Social and Cultural Environment General View On the footing of survey and observation of the rapid development of Vietnamese social life in recent decennaries. this text attempts to propose a planetary position on the cultural environment in Vietnam – the state which is still hapless. but which however has got instead high indexes of life anticipation and instruction.
Cultural environment in Vietnam presents is all right. carnival. and healthy. However. the cultural environment in Vietnam is now unprecedentedly rich. complicated. and fraught with plentifulness of inexplicit jobs. Vietnam has three chief advantages: First. a suited theoretical account of development ; secondly. political and societal stableness ; and thirdly. a countrywide strong will for advancement. with 82 million dwellers. among whom 2/3 are immature people. 3. Business Environment in Vietnam a. Macro Environment in Vietnam Economic Factors.
Ho Chi Minh City’s per capita income has doubled the figure of the whole state ; a recent study by the HCMC Institute for Development Studies has showed. The first-ever study on the income and life criterions of HCMC families was conducted in 12 territories. with 720 questionnaires released. The study revealed Ho Chi Minh City’s per capita income has increased over the past old ages to US $ 2. 500. compared to the whole country’s $ 1. 200. However. the mean income of the rich is seven times higher than that of the hapless in Ho Chi Minh City. harmonizing to the study.
HCMC is now place to 80. 000 hapless families. a Wednesday conference co-hosted by the HCMC Institute for Development Studies and the United Nations Development Program ( UNDP ) was told. A hapless family is defined as holding the per capita income of VND12 million ( $ 650 ) . Merely 24. 3 per centum of Ho Chi Minh City occupants feel “satisfied” with their income. harmonizing to the study. Ho Chi Minh City inhabitants spend half of their income on nutrient. and 20 per centum of their income on instruction. the study says. There an mean 4.
6 members in a family in HCMC ; the figure of people of working age makes up about 70 per centum of the entire population. the study says. Vietnam defines a individual of working age as aged between 18 and 60 for males and 18 to 55 for females. The southern hub’s unemployment rate is 4. 5 per centum. harmonizing to the study. It besides says merely around half of HCMC families have been populating in the metropolis for less than 25 old ages ; meanwhile. the figure of migrators within the past 10 old ages is increasing.