What have been its historical methods of international business since it penetrated

into Vietnamese market. Analyze the advantages and disadvantages of these

methods of international business. (2 pages)

Today, it can be seen that Vietnamese coffee is not only known for its export output
ranked among the top in the world, but also known for its very own and strange
coffee culture with its bold, dense and bitter taste we Vietnamese people. Grasping
those opportunity factors and with market research, Starbuck officially chose
Vietnam to become the 12th market in Asia as part of realizing its business strategy
based on the local culture of Starbucks with the statement "respecting the coffee
culture of the Vietnamese people" according to Mr. John Culver - President of
Starbucks, in China. With previous successes in the form of penetration by joint
ventures in two major markets such as China and India. With this time in Vietnam,
with smaller market size, Starbuck did not choose that form of the joint venture but
instead Starbucks signed and approved the operating license for a single company,
Coffee Concepts, to build a Starbucks coffee chain in Vietnam. A company under the
Hong Kong Maxim Group - which has extensive experience in managing a chain of
130 modern stores in Hong Kong and China. With the agreement of franchising, both
sides agreed to expand the cooperation relationship in the Vietnamese market in
addition to the Hong Kong and Macau markets. Accordingly, Coffee Concepts
Vietnam will become the only licensed operating partner of Starbucks in the
Vietnamese market, which will bring the experiences at Starbucks - an already
famous brand in the world to customers in Vietnam and maximize the growth
potential of this brand. This choice of market penetration is not a shame the name of
one of the most expensive brands in the world, with business strategies that
Starbucks has meticulously and wisely selected in each country helping Starbucks
achieve many successes. According to a brand expert, choosing a joint venture in a
market that is considered "difficult" and does not have a culture of using coffee like
China or India is a wise step for this company to avoid the risk dangerously.
Meanwhile, in Vietnam, Starbucks has many advantages when consumers have had
a "culture" of drinking coffee for a long time, and a part of young people easily
adapts to new consumption trends, Grand. Therefore, the only important problem for
Starbucks in the Vietnam market is the ability to effectively manage the operation
chain, but this is no longer a problem because, with the cooperation with Coffee
Concepts Vietnam company, this is no longer a problem that becomes simple
because this is a company with many years of experience in managing stores.

Today, it can be seen that Vietnamese coffee is not only known for its export output
ranked among the top in the world, but also known for its very own strange coffee
culture with its bold, dense, and bitter taste of we are Vietnamese people. Grasping
those opportunity factors and with market research, Starbuck officially chose
Vietnam to become the 12th market in Asia is part of realizing its business strategy
based on the local culture of Starbucks with the statement "respecting the coffee
culture of the Vietnamese people" said Mr. John Culver - President of Starbucks, in
China. With the previous successful imprints through the form of penetration by a
joint venture in two large markets such as China and India. At this time in Vietnam,
with smaller market size, Starbucks did not choose the form. Instead, Starbucks
signed and approved the operating license for a single company, Coffee Concepts,
to build a Starbucks coffee chain in Vietnam. This is a company under the Hong
Kong Maxim Group - which has extensive experience in managing a chain of 130
modern stores in Hong Kong and China. With these agreements and both sides
agree to expand the cooperation relationship in the Vietnam market besides Hong
Kong and Macau markets. Starbucks was officially present in Vietnam in early 2013
with the first store opened in Ho Chi Minh City, up to now Starbucks has a total of 77
stores in Vietnam.

Advantage:

Accordingly, Coffee Concepts Vietnam will become the only licensed operating
partner of Starbucks in the Vietnamese market, which will bring the experiences at
Starbucks - an already famous brand in the world to customers in Vietnam and
maximize the growth potential of this brand. With a choice of market penetration is
not a shame for the name of one of the most expensive brands in the world, with the
business strategies that Starbucks has meticulously and wisely selected in each
country help Starbucks has achieved many successes. According to a brand expert,
choosing a joint venture in a market that is considered "difficult" and does not have a
culture of using coffee like China or India is a wise step for this company to avoid the
risk dangerously. Meanwhile, in Vietnam, Starbucks has many advantages when
consumers have had a "culture" of drinking coffee for a long time, and a part of
young people easily adapts to new consumption trends grand. For this form of
licensing, Starbucks can use the license agreement to support its expansion into the
international market, specifically in Vietnam. As most licensing agreements require
the licensee to obtain the necessary funds through the construction of special
production facilities or use existing excess potential. Therefore, the basic advantage
of licensing agreements is that the company does not have to incur development
capital when entering foreign markets. In addition, using this method also helps
Starbucks to limit the phenomenon of counterfeit goods on the black market in our
country. By selling licenses, Starbucks can indirectly bring to market products at
more competitive prices, while at the same time holding the licensee accountable for
combating the illegal trade of products in their market. Thereby, in this form of
licensing, Starbucks does not need to spend too much effort and money to invest
and expand production, but it also helps Starbucks' position and position to be
expanded in Vietnam. At the same time, it is also an affirmation and enhancement of
the value of Starbucks in the market

Disadvantage:

Along with those benefits, Starbucks also encountered some disadvantages. The
first is the ability to effectively manage the operational chain. Although Starbucks has
cooperated with a company that has many years of experience in store
management, Starbucks also needs to take measures to monitor and licensed unit
control so as not to lead to negative consequences affecting the image and position
of Starbucks system in the market. Second, this licensing will create future
competitors. Clearly this is especially dangerous when Starbucks hands over the use
of one of its competitively advantageous assets to another company. These
contracts will typically be concluded over a period of several years, or even decades,
and possibly more. At the end of the contract, the licensee is likely to be able to
produce and sell better versions of the company's product. Thereby, in order to limit
this risk, Starbucks must manage and control partners' activities and product output
quality. Because the failure to control the activities and output quality of its partners
well will make Starbucks face the risk of losing the market, and losing its reputation.