Individual Assignment
Case Study: CCD vs Starbucks in India 1. Introduction to the Case
Café Coffee Day, the Indian locally brewed coffee chain, started their operation in the southern city of India, Bengaluru, in 1996. V.G. Siddhartha, owner and chairman, Amalgamated Coffee Bean Trading Company, initiated his career as a trader of coffee post the de-regularization of the coffee market in 1993. He then started India’s biggest retail coffee chain – Café Coffee Day (CCD). Since its inception in 1996, CCD has opened 1,469 stores (as of April 2013) across 200 cities in India (Yoffie and Bijlani, 2013).
Starbucks on the other hand, having a well-established base in the US, started venturing into other global markets. Starbucks is spread across the globe with over 18,000 stores across 62 countries, and becoming the market leader globally.
Starbucks in 2013 entered the Indian market citing a rapid growth in coffee consumption. CCD has overcome challenges put forward by foreign competitors in past. Starbucks, being a global leader, is a big threat to CCD 's dominant market share in India. CCD now faces one of its biggest challenges.
To analyze this case, we would first use the competitor analysis tool to assess the position of companies in India and how CCD could gain a competitive edge over its competitors using their current resources. We would then use the SWOT framework and critically analyze the weaknesses and opportunities of CCD and give recommendations what
Starbucks is one of the leaders in coffee industry. Starbucks has entered into many new markets and today it has more than 16,000 outlets across the globe (Johnson, Scholes and Whittington 2011). Due to unlimited business opportunities, Starbucks Corp has set strategies to enter India as it is next major hub for development in near future. Previously Starbucks has gained wide success in China and Japan due to high consumption of coffee and tea. Since its inception, Starbucks has tapped the major markets across the world, India was left untapped. In India, Starbucks has setup alliances with TATA Global Beverages which is a unit of TATA Group of Companies. Starbucks along with TATA has started with an investment of $80 million and plans to open 50 coffee shops in a year. Currently few coffee shops has been setup by Starbucks, however in near future, it is expected that the company will achieve its target in capturing Indian market (Lamb2009). Thus, besides sourcing coffee beans from TATA, Starbucks can now explore more Asian markets (Hitt, Ireland and Hoskisson 2012).
Starbucks operates in 65 countries offering specialty coffee, tea, and food items to patrons through company-operated stores (Starbucks Corporation, 2014). Moreover, Starbucks sells trademarked items such as coffee grounds and pre-packaged drinks through grocery stores and similar channels (2014). In 2014, there were 21,366 stores globally (14,191 in America) (2014).
Starbucks started by just making and selling coffee and coffee making equipment but now they sell everything from thermoses to delicious frappachinos. They currently have over 22,000 stores around the world. They’ve recently opened stores in panama Colombia, Brunei, India, Costa Rica, Monaco and Norway. The company is a publicly traded company on the stock market. Starbucks specializes in food service and product supplies.
Starbucks have 11.000 stores worldwide, and they serve more than 40 million customers each week and even with these enormous numbers Starbucks continues to grow. The reason Starbucks is still growing is that; people loves the products that Starbucks provide, but there is more to it,
Today, Starbucks coffee an American global coffee company has 21,160 stores in 63 countries. Coffee shop that scored top rating for customer satisfaction in 2008 American customer satisfaction index. With its practices, Starbucks take advantage in the five stages in consumer purchase decision making process. Next, Starbucks’ marketing strategy
Starbucks grew so much in the last couple years. The company now has over 21,537 stores in 64 different countries. They have 12,000in the United states, 1716 in the country of China, 1330 in the country of Canada and 808 in the United Kingdom, this is just a small list of countries that have Starbucks in their country there are many more countries. Starbucks partners with other brands and companies to keep themselves relevant in their industry. (Loxel 2015) The brands in which they’ve partnered with include Teavana, Tazo, and Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks employees over 182,000 employees and has an estimated revenue of $14.89 billion. Over the last 20 years, the company has expanded rapidly with an average of two new stores opening every day.
Starbucks has grown into a common household name with storefronts all over the world. Currently, there are more than 17,000 coffee shops in more than fifty countries. Starbucks not only offers their customers coffee, but coffee beans, accessories, teas, brewers, music and food; all of which contribute to their financial success. Starbucks storefronts are now seen inside grocery stores as well, allowing the shopper browse the aisles while sipping a caffeinated beverage.
Of the nine thousand locations Starbucks has worldwide, over two thousand of those are outside of the United States in thirty four different countries.(Sowa, June 2004) The expansion of retail stores into foreign countries began with a joint venture with Sazabay Inc. in Japan in 1995, and then the eventual opening of retail locations within the country during the following year.(starbucks.com) This was the first time Starbucks ever set up operations outside of the US, and it was in the form of construction of the Starbuck brand retail store locations operated by a foreign company. Starbucks entered the East Asian Market first, in countries such as Japan, Korea, Taiwan, the Philippines, and China, and concentrated on growth in these markets mainly for the first few years of entering the foreign market. Eventually, Starbucks was able to break into other markets as well, such as
Starbucks has become the world leader as the largest coffeehouse company in the world, with 23,132 stores in 65 countries, including 12,937 in the United States, 2,004 in China, 1,416 in Canada, 1,135 in Japan and 849 in the United Kingdom (www.starbucks.com). Since its creation in Seattle, 1971, the coffee giant has several different product lines from pastries, flavored hot and cold drinks, whole-bean coffee, micro ground instant coffee, bear, wine (at some locations), entertainment to include music, books and grocery store packaged products. Their mission is to establish Starbucks as the premier
The company currently has more than 17,000 stores operating in 60 countries (nasdaq.com). They are allocated in high traffic areas; located in-store of various large chains, according with Starbucks the “store is named after the street it is located on”. Also there is a web page that can show The World-Wide Starbucks Map (see map 1), here you can find all the stores across the world, and even this map proves the Starbucks’ cannibalization (see map 2). http://www.loxcel.com/sbux
Starbucks is now the largest coffeehouse company in the word with over 23,000 stores in more than 60 countries and territories including more than 13,000 in the United States, over 1,900 in China, over 1,500 in Canada, 1,089 in Japan, and 927 in the United Kingdom. Starbucks has developed to serving hot and cold beverages, whole bean coffee, teas, pastries, and other types of snacks. They even offer items such as mugs and drinking glasses.
Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand.
Starbucks was established in 1971 and it is an established, successful purveyor of Coffee. Starbucks is always known for its “rewarding coffeehouse” experience. In addition to coffee they offer selection of Tazo teas, pastries and other snack items like Panini to please the taste buds. For creating overall coffee house experience Starbucks stores have an appealing music and décor. Their focus in United States is to create a gathering place where people can chat, sit work much more just than a coffee place. Starbucks has a global presence over 17,000 stores all over the world. Starbucks entered India in 2012 as a joint 50:50 venture with Tata Group. This paper focuses on company’s strategy on entering the emerging market and
India, like many other Asian countries, has a tea drinking culture, but the coffee market is catching up and growing fast. This case talked about the stories of Café Coffee Day (CCD), the Indian coffee industry market leader, along with its competitor Starbucks from USA. CCD was founded in 1996 and by April 2013 it had around 3,000 stores within the Indian market. CCD had not faced any severe threat up till 2012 when Starbucks made its entry into the Indian market through a joint venture with Tata. As the world’s largest coffee chain company, Starbucks wanted to get a slice of the cake. In 2013, it opened 11 stores in Delhi and Mumbai.
Starbucks is one of the largest coffee shop chains in the world. In 2005 it was the leading coffeehouse retailer in the world with operations in 34 countries outside the US, counting 10.241 coffeehouses. Starbucks began its international expansion with Japan in 1995. We think Starbucks is a global company. Throughout the answer we will use Starbucks’ value chain activities to explain why Starbucks can be considered a global company.