Starbucks in India: Serving the Indian Brew

Issues:

» The case is primarily designed to help students understand the idea of market mix and how to achieve competitive advantage.
» It is meant to help identify the challenges faced by Tata Starbucks and to explore the strategies which Tata Starbucks might adopt to overcome these challenges..

Introduction

Starbucks Corporation (Starbucks), an American company founded by Jerry Baldwin, Zev Siegel, and Gordon Bowkerin 1971 in Seattle, WA, was one of the largest coffee chains in the world as of 2016. Globally, Starbucks operated over 23,768 stores spread over 72 countries and serving over 71 million customers per week as of March 12, 2015. Starbucks initially sold only coffee beans and coffee making equipment . By 2016, its products included roasted and high-quality coffee, tea, an assortment of food items, and other beverages . The total annual revenue of Starbucks as of September 30, 2015, was US $19.16 billion. Starbucks entered India in 2012 through a joint venture with India-based Tata Global Beverages , a renowned brand with a good name and reputation. As of 2015, Tata Global Beverages was the world's second-largest manufacturer and distributor of tea and also a major producer of coffee. As of March 31, 2014, Tata Global Beverages Limited recorded total annual revenue of US $ 3.26 billion..