Starbucks conducted extensive market research that enabled it to deeply understand the Chinese markets, which helped it avoid certain market entry risks. The risks that the company tried to avoid include;

-Country risks: These may include the presence of anti-foreign sentiments among government officials or citizens of a country, which may be a challenge to business operation. China has a culture of drinking tea. Therefore, the entry of Starbucks and its advertisements and promotions would have been faced with a lot of hostility. However, Starbucks implemented approaches and strategies that were inoffensive to the Chinese culture, which ultimately bridged the gap between tea drinking and coffee drinking culture.

-Regulatory risks: Starbucks researched China's intellectual property rights laws and licensing requirements, which has protected the company's business models from being copied since all its major trademarks in China have been registered.