24-11-2012, 05:20 PM
IS STARBUCKS READY FOR INDIA
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Indian Coffee Industry:
Indian coffee has a unique historic flavour
250000 coffee growers out of which 98% are small growers.
Last 50 years coffee producers are grown buy 15%
Economic liberalization, Cheaper labor cost and climatic condition favor the growth of the industry
Indian is grown with two tires and inter-cropped with spices such as cardamom, cinnamon, clove, and nutmeg.
Intercropping provides scope for addition of aromatics in India coffee
Starbucks All Set For India
Entry through 50/50 joint venture of US $80 million with TATA global beverages
Perfect partner strategic fit
Initial footprints in Mumbai and plans to reach other metro- Politian city
PORTER’s FIVE FORCES Analysis
Threat of new entrance
Power of buyers
Power of Suppliers
Threat of Substitutes
Competitive Rivalry
CAN STARBUCKS BE POPULAR IN INDIA?
Currently China is biggest market in Asia.
Company planning to increase its store in china to 1500 by 2015 from 450 currently.
“China has 5,000 years as a tea-drinking country, but we’ve created a new coffee culture,”
Starbucks’ Asia-Pacific President last month.
Competition is already intensifying. Young people and a booming middle class are driving coffee consumption by 5-6 percent a year in a country that predominantly consists of tea drinkers. But it’s unlikely they will all convert to the Starbucks cult overnight.