Starbucks India Case Study

Starbucks opened in Seattle at Pike Place market in 1971. Starbucks are the leading coffee retailer in the world with more than 17,000 locations in North America, Europe, Middle East and Asia Pacific. The company wants to deliver the finest coffee products and offers beverages and pastries. Starbucks wants to prevent its competitors from having a head start and follows an international strategy to expand its business globally. Indian consumers have being waiting for Starbucks to come to India. After being successful in China and Japan which is a tea drinking nations, Starbucks wants to enter the Indian Market. Starbucks collaborated with Tata Global Beverages to expand their business in India. They plan to invest a capital amount of $80 million and eventually more as the business grows. Starbucks opened its first outlet in October 2012 in Mumbai, where it currently has four cafes. The joint venture company plans to open stores in important locations like malls, airports, hotels and eventually grown business in other states by the year-end.  

Starbucks and India

Starbucks entry into India was at the right time, when the consumption of coffee was rising with the economic and political growth in India. Starbucks changes its financial structure to reflect on the Indian market from which it could earn and grow its business in India. The government now offers good percentage of foreign direct investment for foreign companies to invest in India. The Government allows 51% of foreign direct investment on supermarkets, department stores and single brand retailer. Joint venture of Tata Global beverages and Starbucks helped them to gain a 100% ownership in foreign direct investment because they were classified into a hospitality business rather than a single retailer. With government policies benefitting foreign direct investment and considering present economic situation Starbucks opened its first flagship store in New Delhi and