Case 12: Tata Starbucks : How to Brew A Sustainable Blend for India
Essay requirements:
• Statement and description of central issue (1 page; 2 minutes)
• Identification/description of alternatives (2 pages; 4 minutes)
• Rationale for selection of best alternative (3 pages; 6 minutes)
• Description of implementation plan (1 page; 2 minutes)
• Conclusion (1/2 page; 1 minute)
Case analysis: how could the company maximize the long-term success of the venture in India?
Doing so would mean going beyond "the westernized and the wealthy" targeting that had worked so well in relatively older and more affluent Asian markets.
While the partnership with Tata was occasionally helping in negotiating for good real estate, starbucks needed to figure out how to leverage the partnership to win over the larger young and middle-income demographic segments.
Store financials needed to be managed to maintain profitability. These issues would need to be addressed quickly as the company prepared to expand into the next tier of Indian cities.