Starbucks Coffee Company

Statement of problem

In 2006, Schultz announced Starbucks’ intent to expand into the countries of Russia and India. India’s conditions for market entry were pretty favorable, and it seemed like a great time to make their move. The population is high and the majority of the population is youthful and is expected to remain youthful for years to come.

It has become a place for many companies to outsource production and services, and is simply all around a great opportunity.

However, there are also constraining factors for economic growth. Yet when the government announced permission, per their approval and certain restrictions, for Foreign Direct Investment in retail trade of single brand products, several chains announced their intentions to take advantage of this opportunity.

Given the circumstance, what would be Starbucks Coffee Company market entry plans in pursuing the Indian market?

Statement of objectives

* To identify market entry strategies for Starbucks Coffee Company to implement in penetrating the Indian market.

* To find the appropriate company with the right business and retail experience and cultural fit for the Starbucks Company.

* To establish the first branch of Starbucks Coffee Company in India (as the continuing plan for penetrating in the Asian market)

Areas of consideration

Starbucks Strategic Posture and Vision

* To provide the Starbucks experience by not just selling coffee but to be a place to hang-out becoming the third place between home and work.

* It gives great importance in its values and business model.

* Its expansion strategy was to open 20 or more stores in the first two years by targeting a large city in a new region to serve as a hub where located teams of professionals are there to support new stores.

Economy

* India was ranked as the fourth largest economy in the world in terms of purchasing power parity in 2006, and the tenth most industrialized country in the world.

* It undertook several...