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In 2002, Starbucks announced that it was planning to enter India. Later it postponed its entry as it had entered China recently and was facing problems in Japan. In 2003, there was news again that Starbucks was reviving its plans to enter India. In 2004, Starbucks officials visited India but according to sources they returned unconvinced as they could not crystallize on an appropriate partner for its entry. In mid 2006, Starbucks announced that they were all set to offer the ‘Starbucks experience’ to Indians in the next 18 months. The case explores India as the next destination for Starbucks and provides an industry analysis of the Indian coffee industry. It attempts at initiating a debate that whether Starbucks should enter India or not. If it should, then its entry strategy, differentiation strategy and long term strategy for India may be identified. The challenges that India may present for Starbucks and how should it cope up with, can also be discussed. The case is targeted at management students and can be taken up in their Strategic and General Management curriculum.

Pedagogical Objectives:

To analyse Starbucks as a company
To analyse the Indian coffee industry and India as a potential destination for Starbucks
To discuss the entry strategies for Starbucks in India
To discuss the opportunities and challenges that Starbucks could face in India.
Keywords : Starbucks; Howard Schultz; Seattle; Japan; China; India; specialty coffee instant coffee; coffee culture; third place concept; differentiation; spoke and hub strategy; Market Entry Strategies Case Study; word-of-mouth promotions; emerging economy; retail environment; Foreign Direct Investment; industry analysis; beverage market; tea; market entry strategy; differentiation strategy; second mover advantage; entry dilemma; joint venture; competitive scenario; market structure; market development; Starbucks experience; lifestyle marketing

Contents :
Howard Schultz and Starbucks
The new Starbucks
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