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Industry watchers said that the coffee business in India was difficult. High rental expenses and intense competition had left most foreign players struggling to achieve profitability despite years of trying. Although Starbucks' partnership with Tata was occasionally helping in negotiating for good real estate, Starbucks still needed to figure out how to leverage the partnership to win over the larger young and middle-income demographic segments in India. Store financials needed to be managed to maintain profitability. Would Starbucks and Tata under Gurnaney's leadership be able to achieve continued brand growth and sustain success in the competitive and complex Indian market?
Instructions:
Answer the following questions:
A. What entry strategy has Starbucks used internationally? Should Tata Starbucks modify its strategy for the Indian market?
B. What forces in the industry environment might affect Tata Starbucks' choice of strategy? And what does an internal analysis tell us about this? What intellectual assets are most important to Tata Starbucks?
C. What business-level strategy should Tata Starbucks pursue?
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