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Starbucks corporation (indian coffee) PPT

Starbucks corporation (indian coffee) PPT

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Starbucks corporation (indian coffee) PPT

  1. 1. Race Together
  2. 2. Starbuck’s India alliance
  3. 3. The Presenter’s  Asif Mahmud Onik  Umma Tamanna  Sharmin Haque  Ummay Sanjida  Bithi Akhter  Biswajit Saha ID: 141051002 ID: 141051074 ID: 133051010 ID: 133051013 ID: 133051065 ID: 133051077
  4. 4.  Most respect coffee retailer in the world.  International expansion is key to success.  Privileged to connect with millions of customers every day.  Partner with Tata corporation in India. Choice Starbuck’s Corporation
  5. 5. Why expand into India  Larger economy.  Coffee culture.  Other American corporation success.
  6. 6. Starbucks Journey in Indian Market  Coffee consumption growing drastically.  Tweaked its menu to suit the Indian conditions.  Starbucks stores offer regular & decaffeinated coffee beverages, teas, pastries, muffins & other break fast food.
  7. 7. Starbucks Challenge in New Market When Starbucks Corporation decides to engage in Indian financing activities, they also take on additional risk (as well as opportunities). Foreign Exchange Risk Political Risk Business Risk in India
  8. 8.  Currency’s exchange risk.  Financial risk  Government power. Foreign Exchange Risk Political Risk  Democracy country.  Policy change.  Trade barriers
  9. 9. Business Operation Challenged in India  Emerging markets experience. Emerging markets are also riskier than developed markets. Economies may be more prone to excessive booms or busts.  Laws across borders. Government actions impacted Starbucks as a challenge with exchange control and other foreign regulations .  Cultural Factor. Tea as the national drink.  Socioeconomically Factors
  10. 10.  Existing Competitors. Indian local & large coffee brand Café Coffee Day.  Pricing decisions. Lower price in Indian market.  Economic Factors.  Bargaining Power of Buyers.  Bargaining Power of Suppliers. Operation Challenge
  11. 11. Starbucks Corporation Mode of Entry Foreign Direct Investment. Licenses. Joint Venture.
  12. 12. Mode of Entry in India Joint Venturing with Tata Corporation.
  13. 13. Mode of Entry  Strong brand name recognition.  Readily available resource.  Massive distribution network Tata has………..
  14. 14. Finance in India Tata 50 % < > Starbucks 50% The two partners will invest a total of $80million initially. Operation is separate from both companies and often the same …role is shared by both managerial teams.
  15. 15. Long term plan in India  Starbucks announced its objective to open more 20 outlets in India by the end of 2015.  Expansion & creating the right training facilities.  Delivering an elevated coffeehouse experience to our customers in India.  Try to serve a variety of small dishes ranging in price to customer.
  16. 16. Starbucks Global Strategy  Differentiation.  Increasing profitability and profit Production.  Market R & D (centralized or few favorable locations).  Try to ensure their quality of product and service run in a same way everywhere.
  17. 17.  Economies of scale is globally standardized.  Compete Based on Price: – Low costs – High volume – Low margins Starbucks also follows the “Cost Leadership” strategy. WHATS STARBUCKS Drinkers TALK ABOUT
  18. 18. Conclusion Starbucks’ still has competitive western advantage when compared to these other competitors. Tata Starbucks connects with its consumers through its social, Internet, mobile, loyalty and cards programs.
  19. 19. Starbucks Coffee president (China & Asia Pacific) John Culver said "We are committed to India for the long-term and we want to grow aggressively here. India will be our top five markets around the world over a long-term"

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