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Abstract

Starbucks, the world''s largest coffee retail brand signed a pact with Tata Coffee, Asia''s largest publically traded coffee grower, to source beans and open retail outlets in India in January 2011. This venture ended all speculation about the Seattle based coffee retailer''s entry into the Indian market since 2007. Starbucks, which entered the Chinese market in 1997 and made it a profitable venture there, was hopeful to replicate this experience in India. The mushrooming coffee culture in India, a traditional tea drinking nation, had attracted several domestic and international chains lining up big expansion plans. Whether the pact will develop into an exclusive arrangement with Starbucks in the front end retail, in contrast to the Starbucks global model of just a franchise arrangement in foreign markets was to be seen. Given that the Tata brand was a ''hallowed'' one in India, experts hoped that the deal would develop into a full fledged sustainable partnership. The case discusses the burgeoning coffee culture in India, the existing players in this segment, as well as the background of the two main players involved.
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Abstract

Starbucks, the world''s largest coffee retail brand signed a pact with Tata Coffee, Asia''s largest publically traded coffee grower, to source beans and open retail outlets in India in January 2011. This venture ended all speculation about the Seattle based coffee retailer''s entry into the Indian market since 2007. Starbucks, which entered the Chinese market in 1997 and made it a profitable venture there, was hopeful to replicate this experience in India. The mushrooming coffee culture in India, a traditional tea drinking nation, had attracted several domestic and international chains lining up big expansion plans. Whether the pact will develop into an exclusive arrangement with Starbucks in the front end retail, in contrast to the Starbucks global model of just a franchise arrangement in foreign markets was to be seen. Given that the Tata brand was a ''hallowed'' one in India, experts hoped that the deal would develop into a full fledged sustainable partnership. The case discusses the burgeoning coffee culture in India, the existing players in this segment, as well as the background of the two main players involved.

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Other setting(s):
2011

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