Brewing the Perfect Blend: Starbucks Enters India

In January 2012, Starbucks enters into a 50:50 joint venture with Tata Global Beverages Limited (TGBL), under which Starbucks will own and operate outlet stores in Mumbai. TGBL has a strong reputation and presence throughout the entire coffee production chain — growing, roasting and trading — that has helped Starbucks navigate its entry into the Indian market. But will this alliance be enough for Starbucks to overcome the political, economic, social and cultural challenges unique to the Indian market and establish its stamp? Would it even be possible to do so without a local partner?

The case examines what well-established multi-nationals need to consider when developing a market strategy to enter a developing market. It moreover demonstrates the various business partnership models such as joint ventures, franchises, and strategic alliances; and discusses their advantages and disadvantages. The assessment of strategic fit between two such partners also explores the dynamics of complementary skill sets and the marriage of corporate cultures.

Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email cmpshop [at] smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account.

Download Information

SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:

· The Case (SMU-13-0005)

· Teaching Note (SMU-13-0005TN)

For purchase of the case and supplementary materials via The Case Centre, please access the following links:

· The Case (SMU-13-0005)

· Teaching Note (SMU-13-0005TN)

For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:

· The Case (SMU-13-0005)

· Teaching Note (SMU-13-0005TN)