After having read Taylor Carkner’s blog post, I agree with his statements regarding the difficulty Starbucks will have entering India’s market, especially since Cafe Coffee Day already has 1200 cafes operating, in India alone. This being said, Starbucks will have to differentiate themselves from this cafe by targeting a specific demographic that is willing to spend over 4$ on a coffee, and have a somewhat “luxurious coffee experience”. In order for Starbucks to find the right location to open their first store, they will have to research which location individuals receive higher incomes and have higher spending power.

Rivalry is high because Starbucks has to compete with Cafe Coffee Day, a company that is already known and used by local customers daily. Since Starbucks wants to gain customers, another option they can take into consideration is researching what types of drinks and food is popular in the location they decide to operate.

A lot of companies change their menu when entering a new country, for example, when McDonalds opened their stores in India, they offered chicken, veggie and local options rather than beef burgers, because of individual preferences. I believe if Starbucks research’s what types of drinks and food is popular in the location they decide to operate, they could potentially gain more customers, and maybe even steal customers from Cafe Coffee Day.

Therefore, if Starbucks begins to provide local options and traditions in their stores, individuals would be willing to purchase more of their products because it demonstrates that Starbucks cares about India’s culture.

Sources:

https://blogs.ubc.ca/taylorcarkner/2012/09/29/starbucks-looks-to-expand-globally/

(Taylor Carkner’s blog post regarding Starbuck’s global expansion)

http://www.rediff.com/money/report/starbucks-makes-india-debut-serves-mumbaikars-first/20121020.htm