Starbucks Venture In Tea Drinking India

The article, from the new-york times of 13 January 2011 deals with the Starbucks venture in tea drinking India.

Starbucks, the American coffee chain wants to move in India, which is a developing country in South Asia, after have succeed its set up in China.

In fact, India represents a huge opportunity for Starbucks.

Firstly, coffee has become more and more popular over the last years in the country

Secondly, the new Indian generation has a bigger purchasing power.

Thirdly, the country achieves one of the world’s fastest growing.

These assets pushed Starbucks, after having studied the Indian coffee market, to set up an operation. It should be noted that the company’s strategy has been successful seeing as Starbucks made a deal with the Indian company Tata Coffee.

This union will give a little help to Starbucks to make a sure establishment.

Also, it is planed that Starbucks will collaborate and do other partnerships in the next months.

However, Starbucks will face two major issues.

Firstly, there are many coffee chains companies on the Indian market. Those imply a rude competition for Starbucks.

In addition to face the competition, the company will have to deal with the Indian policy concerning foreign owned retail chains. This policy will prevent foreign ownership while company sell more than one brand.

To conclude, we saw that India represents a substantial opportunity for Starbucks, even if the competition and the Indian’s policy can be considered as an obstacle.

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