Tata Starbucks Case Study

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6.1 TATA Starbucks alliance functions

Starbucks’ started studying the Indian Food & Beverages market in 2005, and they were considering various options for a local partner as they did not wish to endeavor to enter into the market on their own.
According to John Culver, President of Starbucks, China and Asia Pacific, “When we looked at the opportunity to enter India, understanding the complexities of the market and the uniqueness that is India, we wanted to find a local business partner.”
By 2006, Starbucks was keenly considering various Indian firms for partnership to enter into the Indian market with. The company started talks with 6prospective partners, including the Biyanis of the Future Group, Raheja Brothers and Planet Sports.
Finally, in January 2012, Starbucks and Tata Global Beverages Ltd. declared a partnership of 50:50 joint venture by the name of Tata Starbucks Ltd., which would possess and run coffee shops under the brand name Starbucks Coffee: A Tata Alliance.
Both the partners, Starbucks and Tata Global Beverages Ltd.,firstly invested $80 million in the venture. As per the
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India was the first nation where the espresso chain would offer espresso that was totally provincially sourced and roasted. Domestic sourcing was a financial compulsion for Starbucks, as there were 100% import taxes on coffee imports into India, which would have made importing an extravagant suggestion. The association with TBGL implied that Starbucks was guaranteed of superb beans and could control the coffee bean broiling process that was discriminating to creating the quality mix it was known for. Together with Tata Coffee, Starbucks co-created another mix of coffee for the Indian market. Another plant was set up in collaboration with Tata Coffee at an expense of $543,000 to develop premium coffee beans to supply to the Starbucks' stores in India and other Asian

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