Race Together

Starbuck’s India

alliance

The Presenter’s

Asif Mahmud Onik

Umma Tamanna

Sharmin Haque

Ummay Sanjida

Bithi Akhter

Biswajit Saha

ID: 141051002

ID: 141051074

ID: 133051010

ID: 133051013

ID: 133051065

ID: 133051077

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.

Choice Starbuck’s Corporation

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).

Foreign Exchange Risk Political Risk

Business Risk in India

Currency’s exchange risk. Financial risk Government power.

Foreign Exchange Risk

Political 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

Existing Competitors.

Indian local & large coffee brand Café Coffee Day.

Pricing decisions.

Lower price in Indian market.

Economic Factors.

Bargaining Power of Buyers.

Bargaining Power of Suppliers.

Operation Challenge

Starbucks Corporation Mode of Entry

Foreign Direct Investment.

Licenses.

Joint Venture.

Mode of Entry in India

Joint Venturing with

Tata Corporation.

Mode of Entry

Strong brand name recognition.

Readily available resource.

Massive distribution network

Tata has………..

Finance in India

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.

Economies of scale is globally standardized.

Compete Based on Price:– Low costs– High volume– Low margins

Starbucks also follows the “Cost Leadership” strategy.

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"