Challenges and Strategies of Starbucks in the Indian Market

Managerial Perspective

M A N A G E R I A L P E R S P E C T I V E | 2
Executive Summary
Starbucks Corporation was founded in 1971 and the headquarters are located in Seattle,
Washington. Currently, it operates in more than 66 countries having 21000 retail stores. This
report presents an analysis of the case study of Starbucks entering the Indian market. The
main purpose of the report is to highlight the challenges that have been faced by the
organisation while entering into the new market. Also, it covers the different strategies that
have been followed by the organisation to capture the market and compete with the
competitors. Starbucks make several changes in their strategies, culture, processes and values
in order to expand their business and target the Indian consumers

M A N A G E R I A L P E R S P E C T I V E | 3
Table of Contents
Introduction................................................................................................................................4
Company background................................................................................................................4
Roles and responsibilities of managers......................................................................................4
Challenges and risks faced by Starbucks...................................................................................5
Governance framework..........................................................................................................5
Different culture.....................................................................................................................5
Policy environment................................................................................................................5
Joint ventures.........................................................................................................................5
Business Risk.........................................................................................................................6
Existing competitors...............................................................................................................6
Bargaining power of suppliers...............................................................................................6
Strategies of Starbucks...............................................................................................................6
Global standardization strategy..............................................................................................6
Cost leadership strategy.........................................................................................................6
Segmentation of products.......................................................................................................7
Selecting venues.....................................................................................................................7
Role of ethics and ethical practice.............................................................................................7
Organisational change................................................................................................................7
Impact of values, ethics and diversity on culture.......................................................................8
Conclusion..................................................................................................................................8
References..................................................................................................................................9