After reading Taylor Carkner’s blog post about Starbucks’ first store opening in India, I was intrigued to know how the company planned to enter into different country’s market. Starbucks has had enormous success in North America, Europe and Asia. However, deciding to open a new store in India definitely required some business plan revision.

Facing competition from Café Coffee Day, an already established coffee company in India, Starbucks has entered into a 50:50 partnership with Indian multinational giant Tata Group (a company whose Tata Nano car we had discussed previously in class.)

Tata Global Beverages and Starbucks join together as “Tata Starbucks Ltd.”

Starbucks has revised their previous business plan from opening 50 stores in one year to a slow entry into the Indian market, as a fast growth had failed earlier in Australia. The company is hoping to target wealthier customers with their first high-street store in Mumbai in order to position their brand, and then move on to launching stores in popular malls. They will also feature locally sourced espresso that is roasted in India.

Starbucks is smart for establishing their first store in a high-street location as Indian consumers will associate their brand with luxury and affluence. Partnering with Tata Group was also an extremely wise choice, as Tata is an Indian market veteran and will know how to give Starbucks a competitive advantage over other coffee companies.

Sources:
https://blogs.ubc.ca/taylorcarkner/2012/09/29/starbucks-looks-to-expand-globally/
http://www.moneycontrol.com/news/cnbc-tv18-comments/starbucks-brews-slow-steady-growth-plans-for-india_765759.html
http://www.bbc.co.uk/news/world-asia-india-19754584
http://www.hindustantimes.com/business-news/CorporateNews/Starbucks-to-open-first-outlet-in-Mumbai-by-October-end/Article1-936826.aspx
http://en.wikipedia.org/wiki/Starbucks