Question

what factors Starbucks considers before investing in Indian market? explain it as much as possible.

Answer 1

Starbucks had to consider how to sell to the Indian market, since there were already existing
coffee shops. The two main competitors were Cafe Coffeeday and Costa Coffee.
Starbucks had no experience in selling to customers in an emerging market like India, so
starbucks formed a joint venture with the Tata group before entering the Indian
market.
Starbucks had to take into account the local tastes of Indian customers that are different
from the tastes of the western customers. In addition, India has a tea drinking culture, so that is another
factor that Starbucks had to consider. Furthermore, Starbucks also had to consider a pricing strategy
strategy,since the Indian customer is price sensitive.