Pradeep Gopalakrishna, Rajeshwari Victor, David Fleischmann
Journal of Case Studies
November 01, 2016
In January 2011, Starbucks made an arrangement with Tata Global Beverages to purchase and roast premium coffee beans at a new facility in southern India. In January 2012, this was expanded to an $80 million retail joint venture. Tata proved to be a very valuable and trustworthy partner, through its assistance with high quality local sourcing, menu modifications for local tastes, and the acquisition of prime retail space. Starbucks expansion in India thus far has been successful. By November 2013, Starbucks had 30 stores in India, in the cities of Mumbai, Delhi, Bangalore, and Pune. However, continued success was not certain. Competition from local and foreign competitors was intensifying. India was a large, but complex and fragmented market. It was not yet clear how Starbucks could best adapt.