Case 7 (Starbucks Coffee Company: the Indian Dilemma )
Case 7 (Starbucks Coffee Company: the Indian Dilemma )Case 7
Starbucks Coffee Company: The Indian Dilemma
In 2006, the US based Starbucks Coffee Company, with over 11,000 stores in 36 countries was the No. 1 specialty coffee company in the world. Every week over 40 million customers visited Starbucks coffeehouses. After phenomenal success in the US, and revolutionizing specialty coffee culture, Starbucks undertook international expansion and popularized its specialty coffee worldwide. In the 1990s, Starbucks concentrated its expansion efforts mainly in Asia. The initial pages of the case delineate the origin and growth of Starbucks as a company and a super brand and the strategies adopted by it.
In 2002, Starbucks announced that it was planning to enter India. Later it postponed its entry as it had entered China recently and was facing problems in Japan. In 2003, there was news again that Starbucks was reviving its plans to enter India. In 2004, Starbucks officials visited India but according to sources they returned unconvinced as they could not crystallize on an appropriate partner for its entry. In mid 2006, Starbucks announced that they were all set to offer the ‘Starbucks experience’ to Indians in the next 18 months.
Starbucks is initiating that whether they should enter India or not. I recommend that Starbucks should not enter India because although India has many opportunities, India is risky in terms of their people of having an increasing rate of obesity that if Starbucks sold their products, it can lead to increased obesity risk, heart diseases, and cancer. There are so many prohibitions in India that may affect the strategies of Starbucks. Also, it doesn’t agree with the Starbucks conditions that may become their risk in entering India because Starbucks has its own strategies in making Starbucks outstand in the coffee market.
“There is nothing that keeps us doing business in India.” --Cole