Cultural differences
Expanding any given company in a new country would mean that there are cultural differences expected. As a way of ensuring that the company meets its needs, there is a need for a consideration of the different cultural practices. This is to ensure that the firm is in line with these differences. It also ensures that it can easily relate with the individuals in the new country to attract them to buy the goods and services getting offered by the firm. In the case of Starbucks, expanding its business to Nigeria, would mean having to identify the cultural differences and adapting to them (Chris, Uche, & Timothy, 2016). Nigeria is one of the most populous countries in Africa, where it has plenty of natural resources and coastal ports, which makes it a prime candidate for global business opportunities. The country is rich in tradition and culture, where it has since its independence maintained its unique identity.
There is a need to understand the current climate and environment of the nation before starting any branch in any of its cities. The cultural dimensions also ought to be thoroughly adhered to before the development and implementation of a marketing and integration strategy by Starbucks. According to Geert Hofstede, Nigeria has a short term orientation culture, which is an opportunity for the business to thrive (GEERT HOFSTEDE, 2020). However, a business ought to exhibit great respect for the country traditions, where all its practices have to be in line with the law of the country and also the different cultures which the country has. Failure to do so would bring the business into conflicts with not just the authorities but also the residents, which may negatively affect the projections of the company. Concerning language, most Nigerians can smoothly communicate in English, making it an open market to get into since it will be relatively easy to communicate and make sales without any possible language barriers.
Some of the factors that Starbucks ought to consider before setting up branches in the country include factors such as the political instability in the country, regional conflicts, and the weakening influence of the massive corruption. These are factors vastly derail the economy of the country, leading to a high number of poverty cases. It also denies the country many opportunities for growth. The company needs to be keen on ensuring that it does not let some factors such as corruption get on its way. This is since it may have dire consequences on its brand name and the trust of its prospective customers, which may ultimately derail the business’s progress.
Cultural exchange
Many of the locals in the Nigerian cities are social people and often are seen to engage easily with their counterpart locals and stingers. This means that the company would need to have an equally social workforce, as a way of ensuring that the customers are comfortable and that they can relate well with the company. The social change amongst the citizens of Nigeria could be borrowed by Starbucks commonly, which it could incorporate as a part of its culture in the country (Amos, Akpoviroro, Sariat, & Arike, 2019). Adapting such practices will make the company friendlier, and hence attract more prospective customers to access and purchase its products.
Many of the Nigerians are religious. The Muslims are 50% of the population, whereas Christians make up to 40% of this population (Chris, Uche, & Timothy, 2016). There is a need for the company to accept and welcome all its customers in the country without any discrimination against religious affiliation. According to the country constitution, everyone in the country enjoys the freedom of religion. However, it is critical to note that some States have restrictions for religious demonstrations or gathering as a matter of security though this is unlikely to affect the Starbucks business at any given point. The employees have to be urged to respect each and eyry customers’ affiliations, as a way of making everyone feel accepted and appreciated despite the diversity.
The cultural dynamics of politics, religions, and lack of educational opportunities in Nigeria often influence the business and markets in the country. There is a need for the firm to understand these aspects before integrating them into business practices fully. Understanding such critical elements will help the company to work with the current environment as a way of maximizing its business objectives (Chris, Uche, & Timothy, 2016). There is also a need to thoroughly scrutinize and analyze how Nigerians conduct their businesses, which will subsequently help in developing business strategies, marketing of the tools utilized, and understanding the consumers better concerning what they would want or need. Ostensibly, the Nigerian culture and social influences affect the management and strategies of marketing, which Starbucks ought to be keen on before establishing branches in the country. Studying how the Nigerians conduct their business in the large cities, and amongst each other, can be of help to Starbucks, since it would allow it to understand the ways of maximizing profitability and at the same time becoming successful within this region.
Distribution Methods
By understanding the Nigerian market, it will be relatively easier to apprehend the best channels of distribution for the Starbucks products. The first best distribution channel would be to sell to consumers directly. This would suit and also boost the Starbucks business model. Fast foods could quickly be sold at the various branches within Nigerian Cities, where consumers would personally have sit-ins or takeaways of the product. This will also enable the firm to offer after-sale services to the consumers. The channel is also suitable in that there are very few processes involved in such a channel, which will help in maximizing the revenues collected and, ultimately, the profit margin. Another benefit of direct sale to consumers is that it will minimize intermediaries and hence curtailing bureaucratic processes that would harm the business to consumer relationship.
Another suitable distribution channel could be the use of agencies in the distribution of Starbucks products to the costumers. This would mostly involve e-commerce firms and also delivery firms that would make it relatively more straightforward to reach a higher number of clients. This channel is the best applicable in the event of making deliveries to homes within the Nigerian cities and also having Starbucks products in other stores such as supermarkets or e restaurants (GEERT HOFSTEDE, 2020). The channel could only be effective of the company, and other agencies have an agreement on how to conduct the sales, the commissions which each of the agencies will get and adequately address any issues that would result in conflicts or disagreements.
Amos, A. O., Akpoviroro, K. S., Sariat, A. O., & Arike, S. S. (2019). International Business Environment and Constraints of Small and Medium Enterprises in Nigeria. . Covenant Journal of Business and Social Sciences, 10(1).
Chris, O., Uche, C. B., & Timothy, O. (2016). Influence of the dimensions of corporate cultural practices on development and performance at the Nigerian Breweries Plc, Lagos, Nigeria. IFE PsychologIA: An International Journal,. 24(2), 147-155.
GEERT HOFSTEDE. (2020). Hofstede Insights. Retrieved from https://geerthofstede.com/landing-page/