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“Starbucks Coffee Company: the Indian Dilemma”

Ateneo De Zamboanga University
School of Management and Accountancy

CASE ANALYSIS

“Starbucks Coffee Company: The Indian Dilemma”

Prepared by:
Barbaso, Jan Paulo E.
Bejerano, Hyacinth Vienne A.
Deogracias, Scepter Jr. O.

March 14, 2014

Background of the Case
With a rich history, in 1994, Starbucks Coffee Company was formed and Howard Schultz became its President. Since then the company was the number one coffee retailer and continuously expands its business globally. It pursued international expansion with three objectives in mind: to prevent competitors from getting a head start, to build upon the growing desire for Western brands, and to take advantage of higher coffee consumption rates in different countries. And so seeing that the Asian market is in its developmental stage, it took this opportunity to be a leader in a new industry and so it concentrated its expansion efforts mainly in Asia starting with Japan and China. In 2002, Starbucks announced for the first time 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 agree on an appropriate partner for its entry. A statement coming from Starbucks said that “Without sounding arrogant, we are looking at our own strategy. There is nothing that keeps us doing business in India.”

I. Statement of the Problem
Given the circumstance, what would be Starbucks Coffee Company market entry plans in pursuing the Indian market?

II. Objectives * To identify market entry strategies for Starbucks Coffee Company to implement in penetrating the Indian market. * To find the…...

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