Essay by alwaffiiUniversity, Master's March 2014

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Starbucks Coffee Company

The Indian Dilemma


In 2006 , Starbucks coffee company (Starbucks) the world No.1 specially coffee retailer had over 11000 stores in 36 countries, Starbucks employed over 10000 people. The company had over 7600 retail locations in its home country US. Starbucks succeed to cover almost the world wide with its special coffee.

In 1982 Starbucks hired a new director called Schultz; Schultz tried to convince the owners to build Starbucks in to a chain of Italy style but they refused which made him to leave Starbucks in 1985 and lunch his own coffee bar.

In 1987 the founders of Starbucks sold the company with its name to Schultz where he was able to open branches for Starbucks in Chicago in 1987, Los Angeles in 1991, Washington in 1993 and in New York and Boston in 1994. And so more in Asia.

In 1990 to 1992 Starbucks made an incredible increase in its sales to reach 300% with $ 103 million.

The company was able to enter Asia starting with Japan in 1990's which was the second most profitable market after US market; followed by China in 1990.

In 2002 Starbucks announced for the first time that it was planning to enter India but later it postponed it entry as it had entered China recently and was facing problems in Japan. In 2003 Starbucks was reviving its plans to enter India.

In mid-2006 Starbucks spoke person stated that they will be ready to open a branch in India within the upcoming 18 months.

Current Situation

Current Performance

Large Company with high specialization in beverage products

Number 1 in US market

In mid-1987 the sales in each stores had reached around $50000 a year

Between 1990 and 1992 sales increased almost 300% to reach 103$ million

In 2002...