Is Starbucks in the right position to see success in India? While many would consider it to be a successful venture, there are skeptics that believe it will be a definite struggle.

The corporation of Starbucks is reportedly lining up for a $78 million investment to enter the Indian market.  Starbucks, a company dating back to 1971 in Seattle, just recently combined with Tata Global Beverages for a joint venture in where they plan to open outlets in India as early as October of this year. With a rapid success in China, Starbucks is hoping to replicate that business model and integrate it in the Indian market. Starbucks plans to position its brand as a location of luxury; a high quality coffee experience serving to the upper middle class. Such a move directly relates to our class on brand positioning. Starbucks is attempting to establish itself as a cool and hip spot on the grounds of India.

Is such a move a guaranteed success? Maybe not. India already holds renowned coffee huts such as Cafe Coffee Day and Costa Coffee. With such strong competitors already, brand loyalty will prove to be a tough goal to manage for Starbucks. Secondly, although Starbucks is a global icon, not everyone in India’s demographic may know about it, and thus, leads me to my next point: Starbucks faces a price-sensitive market of Indian consumers. Average incomes in India are half of those in China (in terms of purchasing power) and the number of millionaires are one-tenth. With that said, consumers may find Starbucks a bit too pricy and may turn to another alternative.

Sources:

http://www.forbes.com/sites/greatspeculations/2012/09/07/starbucks-is-finally-coming-to-india-cautiously/

My question,  “Is flavorless soup worth a painful death of a shark?” For me, such a commodity is not a even a desirable want.

Shark fin soup, a traditional Chinese dish that is often served at weddings, may no longer be a delicacy sold in BC restaurants. North Vancouver and Maple Ridge are now among the new cities that have successfully motioned a ban toward shark fins. Consequently, the mayor of North Vancouver is starting an effort to have a provincial ban on the possession, sale, and distribution of shark fins.

On a global view, this delicacy results in 73 million sharks being killed primarily for their fins which endangers one-third of open ocean sharks. Additionally, sharks will be thrown back into the water after having their fins cut off  to suffer a painful death. Without a ‘motor,’ sharks are susceptible to starving, drowning, or being eaten alive.

In conclusion, the opportunity cost of endangering open ocean sharks for the production of shark fin soup seems out of line when you consider the small popularity of shark fin soup. Few areas may have a bigger demand for this soup, but even then, from an ethical stand point, is it worth it?

Sources:

http://www.stopsharkfinning.net/shark-finning.htm
http://bc.ctvnews.ca/two-b-c-cities-ban-shark-fin-products-1.953171
http://www.vancouversun.com/technology/Vancouver+debate+shark+fins/7233434/story.html

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