Race

Together

Starbucks India

alliance

The Presenters

Asif Mahmud Onik ID: 141051002

Umma Tamanna

ID: 141051074

Sharmin Haque

ID: 133051010

Ummay Sanjida

ID: 133051013

Bithi Akhter

ID: 133051065

Biswajit Saha

ID: 133051077

Choice Starbucks Corporation

Most respect coffee retailer in the world.
International expansion is key to success.
Privileged to connect with millions of customers every day.
Partner with Tata corporation in India.

Why expand into India

Larger economy.
Coffee culture.
Other American corporation success.

Starbucks Journey in Indian Market

Coffee consumption growing drastically.
Tweaked its menu to suit the Indian conditions.
Starbucks stores offer regular & decaffeinated coffee
beverages, teas, pastries, muffins & other break fast food.

Starbucks Challenge in New Market

When Starbucks Corporation decides to engage in Indian financing activities, they
also take on additional risk (as well as opportunities).
Business Risk in India

Foreign
ForeignExchange
ExchangeRisk
Risk

Political
PoliticalRisk
Risk

Foreign
ForeignExchange
ExchangeRisk
Risk
Currencys exchange risk.
Financial risk
Government power.
Political
PoliticalRisk
Risk
Democracy country.
Policy change.
Trade barriers

Business Operation Challenged in India

Emerging markets experience.
Emerging markets are also riskier than developed markets.
Economies may be more prone to excessive booms or busts.

Laws across borders.

Government actions impacted Starbucks as a challenge with
exchange control and other foreign regulations .

Cultural Factor.
Tea as the national drink.

Socioeconomically Factors

Operation Challenge
Existing Competitors.
Indian local & large coffee brand Caf Coffee Day.

Pricing decisions.
Lower price in Indian market.

Economic Factors.
Bargaining Power of Buyers.
Bargaining Power of Suppliers.

Starbucks Corporation Mode of Entry

Foreign Direct Investment.
Licenses.
Joint Venture.

Mode of Entry in India

Joint Venturing
with
Tata Corporation.

Mode of Entry

Tata has..
Strong brand name recognition.
Readily available resource.
Massive distribution network

Finance in India

Tata
50
%
<
>
Starbucks
50%
Tata 50 % < > Starbucks 50%
The two partners will invest a total of $80million initially.
Operation is separate from both companies and often the
same role is shared by both managerial teams.

Long term plan in India

Starbucks announced its objective to open more 20 outlets in
India by the end of 2015.
Expansion & creating the right training facilities.
Delivering an elevated coffeehouse experience to our
customers in India.
Try to serve a variety of small dishes ranging in price to
customer.

Starbucks Global Strategy

Differentiation.
Increasing profitability and profit Production.
Market R & D (centralized or few favorable locations).
Try to ensure their quality of product and service run in a
same way everywhere.

Starbucks
Starbucksalso
alsofollows
followsthe
theCost
CostLeadership
Leadershipstrategy.
strategy.
Economies of scale is globally standardized.
Compete Based on Price:
Low costs
High volume
Low margins

WHATS STARBUCKS
Drinkers TALK ABOUT

Conclusion
Starbucks still has competitive western advantage when
compared to these other competitors.
Tata Starbucks connects with its consumers through its social,
Internet, mobile, loyalty and cards programs.

Starbucks Coffee president (China & Asia Pacific) John Culver said
"We are committed to India for the long-term and we want to grow aggressively
here. India will be our top five markets around the world over a long-term"