The Indian Market
The problem that Starbucks had when it entered the Indian market was that this was a country that drank tea traditionally instead of coffee. Starbucks was worried that its coffee products will not get the attention and appreciation that they deserve from the Indian consumers. Thus, what Starbucks did was to make sure that it conducted an extensive research first of the habits of the Indian consumers to make sure that it will be able to come up with a menu that will be appreciated by these people. Aside from this, Starbucks made an excellent decision to get the support of Tata Group which enabled it to set up shops in the best locations possible and contributed to the tremendous profitability. On the other hand, the problem that Starbucks had when it entered the Chinese market was that its shops did not fit well with the standards and preferences of the Chinese consumers because they were too cramped in space. This is because the Chinese consumers preferred wide spaces in their buildings so that they could be able to enjoy and unwind comfortably. Thus, what Starbucks did was to make sure to build bigger and more spacious shops in China so that the Chinese consumers would have an enjoyable time while staying there.
The Chinese Market
The problem that IKEA had when it entered the Chinese market was that the do it yourself (DIY) concept was not acceptable to the Chinese consumers. The Chinese consumers did not appreciate the idea that they would still need to assemble the furniture themselves which they believed to be time-consuming. Thus, IKEA came up with the solution of using a do-it-for-me model where the Chinese consumers would be spared already from having to do the assembling of the furniture themselves. The company learned from the mistake of Home Depot which refused to change its DIY concept and paid the price by losing a lot of money along the way and the eventual shutdown of its operations in China.
Another problem that IKEA had when it entered the Chinese market was that it offered expensive furniture which the Chinese consumers could not afford. The company targeted the wrong consumers who simply did not have the money to buy the furniture that it was offering. Thus, the solution of IKEA was to make sure that it lowered the prices of its furniture and targeted the right Chinese consumers which where those in the ages of 20-35. On the other hand, IKEA also made furniture specifically for the Chinese consumers aged 35-45 who could already afford to buy more expensive furniture because of their financial stability. Finally, the IKEA shops did not fit well with the standards and preferences of the Chinese consumers because they were too cramped in space. Thus, IKEA also constructed massive stores so that more Chinese consumers would be interested in buying furniture. The massive stores had more space to allow more Chinese consumers to get inside and inspect the furniture available while feeling comfortable.
