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The Dilemma of Starbucks Coffee Company's Expansion in India - Case Study Example

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The Dilemma of Starbucks Coffee Company's Expansion in India

According to the research findings, it can, therefore, be said that Indian market operations have also been curtailed by the fact that local competitors have upped their stake in the market share through their own home-made brews such as teas and herbal drinks. The Indian experience has further been marred by recent government regulations such as the applied limits on foreign investors’ total paid-up capital share the company. It’s the pricing strategy of the Starbucks Company that has put it in trouble in India. “Make every coffee drinker who visits Starbucks leave with a smile by creating unique atmospheres at every location, providing satisfying products, and delivering our high standard of customer service with every cup of coffee.” Starbucks is aspiring to be the most respected and recognized brand in the market. They are keen on expanding quickly in existing and new markets and have created Starbucks Coffee International (SCI) to facilitate this. Internal expansion is facilitated by their ability to form joint venture agreements with Starbucks stores outside the United States, the development of new stores in new global markets and working with local companies of high repute. Starbucks has realized that customers are their major asset. They lay great emphasis on creating their locations. Starbucks has realized that increasing profits is one of their major successors in time to come. Starbucks aim is to form relationships with renowned third parties who share their values and maintain high quality. Starbucks is always in the process of experimenting and creating new products and services to satiate their customers. The greater portion of Starbuck’s sales comes from their coffees and Italian-style espresso beverages. Apart from coffee Starbucks also has a wide range of products that includes pastries, coffee-related accessories, sweets, and equipment. They also started selling premium tea at their outlets. The company continues to expand its repertoire of products by introducing candy bars and fruit juices that can be found in supermarkets. ...Show more


This essay explores the dilemma of Starbucks Coffee Company's expansion in India. As for the current performance Starbucks has only a few stores in New Delhi and Mumbai. The paper tells that Starbucks in India has been under pressure for price revisions from local political authorities…
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The Dilemma of Starbucks Coffee Companys Expansion in India
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