Starbucks And Tata Case Study
Strategic Alliances: Starbucks Coffee and Tata Global Beverages Joint Venture Starbucks has its presence in 73 countries including the US, UK and China, and over 23,000 stores in these countries (Economic Times, 2016).It operates in the highly competitive retail industry (Economic Times, 2016). The company has been battling for the top position as the leader in the coffee retailing industry. Its main competitors include MacDonald’s, Dunkin’ Donuts and other large retail stores (Brizek, 2014).Starbucks has responded to competitive forces by entering into strategic alliances with firms established in target international …show more content…
The joint venture would operate under the name TATA Starbucks Limited and it would own and operate Starbuck’s coffee retail stores which would bear the brand name Starbucks Coffee “A Tata Alliance.” The retail stores would be established across India starting with the major cities of Delhi and Mumbai within year 2012 (Starbucks, 2012). In distinct agreement of under the joint venture between Starbucks Coffee Company and Tata Coffee Limited, Tata Coffee Limited would roast coffee and supply it to the joint venture( Tata Starbucks Limited), and also export the same to Starbucks Coffee Company. In another agreement, the two companies would work to develop and improve the profile of the Indian-grown Arabica coffee throughout the world by carrying out joint marketing strategies , as well as enhance the Indian Coffee quality through facilitation of sustainable practices and advanced agronomy solutions (Starbucks, 2012). Starbuck’s 50:50 joint ventures have surpassed Starbuck’s expectations in terms of brand growth and customer base. The joint venture operates 75 outlets in various India’s cities and future expansion plans are underway (Economic Times, …show more content…
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