Starbucks entered the Indian market through a joint venture with Tata Global Beverages, leveraging Tata's local expertise and Starbucks' global coffee expertise. Starbucks outlets in India were designed differently considering local culture and provided a space for social gatherings. Key challenges for Starbucks in India include increasing competition, health issues, establishing in new markets. To address this, Starbucks plans to aggressively advertise, position itself as a hangout place, analyze competitors, and bring new products. The corporate strategy involves analyzing businesses Starbucks can compete in successfully. Growth strategies include global and local expansion through mergers, acquisitions and partnerships. Diversification strategies include expanding into tea, soft drinks, beer and wine. Starbucks creates value in India by differentiating

2. STARBUCKS VALUE CHAIN ANALYSIS

3. STARBUCKS LIFE CYCLE

4. SWOT ANALYSIS

5. DISTINCTIVE RESOURCES OF STARBUCKS
Leveraging the global in-home expertise of Tata Global Beverages and the global out-of-home expertise
of Starbucks
They used 100% Arabian Coffee
Had huge Outlets with great Ambiance and space
Outlets were designed differently for different cities considering the locality
Staff was also a plus point with good communication skills. They were helpful and polite.

6. FUTURE CHALLENGES AND COMPETITION THAT
STARBUCKS FACE FOR NEXT FIVE YEARS IN INDIA?
Increasing
Competition
Health and
obesity issues
in India
Beverage
habits.
Established
competition.
Catching
untapped
market.
Connecting
Tata
subsidiaries.

7. HOW THEY DEAL WITH IT?
Aggressive
advertising.
Positioning
according to Indian
mindset- where
people could meet
up, hangout place.
Analyzing
competitor’s
expansion strategies
on regular basis.
Bringing product
verity
Continuous feedback
and customers
insights.
Geographical
location survey.

8. CORPORATE LEVEL STRATEGY
Involves the careful analysis of the selection of
businesses the company can successful compete in.
Corporate level strategies affect the entire
organization and are considered delicate in the
strategic planning process. Corporate level strategies
are formulated by the top management with inputs
from middle level management and lower level
management in the formulation process and
designing of sub strategies

9. GROWTH STRATEGIES
A growth strategy could be
implemented by expanding
operations both globally and
locally. Aside from the
illustration of internal growth
strategies above, an
organization can also grow
externally through mergers,
acquisitions and strategic
alliances.
The coffee chain market was
growing rapidly at an estimated
annual expansion rate of
20%and projected to reach 5000
in next four years.
Create new occasions-
essentially targets different day
parts. it targets breakfast and
launch to attract customers
during non-peak hours

10. DIVERSIFICATION STRATEGIES
Acquiring the tea market and moving it forward- Starbucks has taken this acquisition to
heart, throwing itself into the expansion of specialty tea brand in October 2013.
New approach to soft drinks- the brand has turned to soft drinks by launching its
new Fizzio
Beer and wine offerings.

11. VALUE CREATION BY STARBUCKS IN INDIA
They were creating their position in Indian market not just because they were providing a good quality
coffee with high price but good services, lavish stores where people like to hang out, meeting their friends
and corporate meetings and several social gathering and women sit as they fell short of safe public space.
Find ways to differentiate that creates value for buyers and are not easily matched or cheaply copied by
rivals.
The two companies will also develop a tea for the Indian market under the Tata Tazo brand.
The alliance with Tata could help ease one of the main burdens for retailers in India: the high cost of real
estate.
The joint venture would open outlets at properties owned by group companies, for example at the Taj chain
of luxury hotels.

12. SUSTAINING COMPETITIVE ADVANTAGE
CUSTOMER
Conduct in-store survey bi-annually to get
customer feedback and suggestions, this will
give insight into any problem like lack in variety
in food or problems.
Conduct geographical surveys to see if any
region is less likely to have Starbucks consumers
in it. This may be due to cultural opinions
towards Western business Expansion.
INTERNAL BUSINESS PERSPECTIVE
Examine weak
points within the
new Starbucks
outlets in India
on an individual
basis.

13. THANK YOU