This document summarizes key differences between Starbucks and Highland Coffee in Vietnam. Starbucks aims to inspire people globally with its mission, while Highland Coffee focuses on customers in Vietnam. Starbucks uses exclusively Arabica beans imported from abroad, while Highland Coffee uses both Robusta from Vietnam and some Arabica. Starbucks tailors its seasonal drinks to different markets, while Highland Coffee focuses on traditional Vietnamese tastes. Starbucks follows a differentiation strategy with higher prices targeting all customers, versus Highland Coffee's lower cost strategy targeting Vietnamese customers. The main difference is price, as Starbucks is currently more expensive than what many Vietnamese can afford.

1. Name: Le Hoang Phuong Anh
Keuka ID Number: 332935
Class Number: HC12B
Course: BUS350
Name of the assignment: Homework #3
1. The Starbucks Mission is “To inspire and nurture the human spirit-one person, one cup,
and one neighborhood at a time”.
2. Highland Coffee’s Vision is “Proud of the brand of Vietnam, Highland Coffee’s
philosophy is to combine the essence of the modern world with the charm and traditional values
of Vietnam”. It is totally different from Starbucks Mission. Starbucks mission is for all people in
over the world. In contrast, Highland coffee inclines customers in Vietnam.
3. Both Starbucks and Highland Coffee have lots of special features. Two of these feature
are really interesting, there are products and service. Firstly, about the product, as all people have
known Starbucks is from the USA and Highland Coffee is a famous brand of Vietnam. Starbucks
uses 100% Arabica beans, which are imported from foreign countries. Highland coffee uses both
Robusta beans with Vietnamese style and Arabica product line with international flavor, these all
beans are from Vietnam. For product feature, the different strategy between two companies is
Starbucks has varied and special drinks suitable for each season. For example: Starbucks has
special drinks for Christmas such as Ristresso Bianco, Peppermint Mocha… Particularly, for the
Vietnamese market they have invented a drink comport with Vietnamese customers, Asian Dolce
Latte. They have done very good at local relevant strategy. For Highland coffee, they have fewer
drinks than Starbucks, but almost drinks work well for Vietnamese taste, for example: white

2. coffee, black coffee. However, to spread their customers and market in global market, they have
added some drinks for foreign people such as Espresso, Cappuchino… They also have some
special products like Jelly Freeze Coffee- typical coffee of Vietnam. Both of company not just
only serve drinks but also provide delicious food for customers, but Highland Coffee food is
really traditional.
Secondly, about the value creation, Starbucks and Highland Coffee have two different strategies.
Starbucks follows differentiation strategy and Highland follows low cost strategy. The products’
price of Starbucks is much higher than Highland Coffee. Starbucks coffee’s price is from 35,000
VND from 105,000 VND, but with Highland Coffee, the price is from 29,000 VND to 74,000
VND. Therefore, main target of Starbucks is all people. In the other hand, main target of
Highland is Vietnamese people.
4. In my opinion the most important thing that makes Starbucks different from Highland
Coffee is the price. Vietnam is still a developing country with a quite low GDP. Starbucks came
to Vietnam with a high price, even though it is cheaper than other foreign Starbucks, Vietnamese
people are really hard to buy coffee, especially young people who is Starbucks’ target in
Vietnam . Therefore, with an average price, Highland can have more advantages compare with
Starbucks. I think Starbucks will succeed in long-term because Vietnam is still developing, in
future, the life standard will be improved, so the price problem may not be so important.
However, in my view Highland still have a certain position in Vietnamese market; because it’s
coffee have Vietnamese taste.
Reference:
http://www.highlandscoffee.com.vn/vn/index.html
http://www.starbucks.com/