Coffee Wars India And How Cafe Coffee Day Essay

2059 WordsSep 18, 20169 Pages
How can companies create and sustain competitive advantage, so as to efficiently compete in its industry and create value for itself and society? This is the fundamental question that a business strategist aims to understand and solve. The case on Coffee Wars in India and how Café Coffee Day (CCD) can effectively compete against global brands in India is an excellent way of appreciating this question. By April 2013, CCD was the dominant market player in a new coffee industry, effectively leading the market with more than 50% of the market share (Yoffie and Bijlani 2014, p. 1). However, there were several operational challenges (workplace attrition, engaging customers among others). Besides that, there was the threat of a new competitor to challenge the dominance of the company in the market. Starbucks, the global coffee giant had entered the market with a joint venture with the Tata Group. For many years, CCD had decisively competed against global coffee brands in the Indian Market, like Lavazza and Costa but the entry of Starbucks could be different. V.G. Siddhartha and Venu Madhav, the Managing Director of CCD now began to think of a new approach tackling this new challenge and defend its existing market share (Yoffie and Bijlani 2014, p. 1). This case brought a central question to the limelight: how should CCD respond to the challenge of Starbucks as a new market entrant? The related questions were: what exactly was CCD’s primary source of competitive advantage, and how

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