Starbucks, as we know is one of the most popular coffee company and coffeehouse chain. Currently, Starbucks is the largest coffeehouse company in the world,” with 20,891 stores in 62 countries, including 13,279 in the United States. From Starbucks’ founding in 1971 as a Seattle coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day”. The coffeehouse is just more about providing coffee as it delivers everything else that goes with a full and rewarding coffeehouse experience. It’s not unusual to see people coming to Starbucks to chat, meet up or even work. They have truly stood by their mission “ to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. We make sure everything we do is through the lens of humanity- from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly”(starbucks).

Starbucks has recently ventured in India and the coffee chain is expanding aggressively in India even as “its competitors, including global rivals such as Costa Coffee and Gloria Jean’s coffees, are having a tough time in the country’s café market. Starbucks has used a 50:50 joint venture with Tata Starbucks Ltd and added seven stores in the last one-and-half months alone, taking the total number of stores in the country to 43 at present” (economic times). As we know, joint venture with a foreign company has long been a favored mode for entering a new market. “A joint venture is a separate corporate entity in which two or more companies have an ownership stake”(pg. 155).

While PepsiCo, “is an American multinational food, snack and beverage corporation with interests in manufacturing, marketing and distribution of grain-based snack foods, beverages and other products”