1. Coffee Industry and company situation
Coffee industry is the most widely trade in the world. Coffee beans in the world market are increasing. In the period 2009-2010, coffee exports that estimated US$ 15.4 billion. The exporting members of the International Coffee Organization are responsible for over 97 percent of world output.
Starbucks is currently one of the top competitors in the coffee industry. In order to better determine Starbucks situation in the specialty coffee industry it is important to look qualitative and quantitative at its current strategy. Starbucks has done many things to help its company grow and expand into the transnational business that it is today. As coffee shops may be nearing saturation point in the US and
Europe, Starbucks
has identified the
potential
to
expand in
emerging
markets like a
India. The
coffee industry expected to
continue growing through
at
least
the year
2015 and
even
longer in emerging
markets.
India won’t be easy for Starbucks. It not only has to introduce products suited to the local tastes but also must take into account that India traditionally has a tea-drinking culture. India was the largest producer and consumer of tea in the world. Coffee was third in the hot beverage market. India’s per-capita coffee consumption stands at a mere 82 grams annually, compared to 6.8 kg for Germany or 5.9 kg for Brazil. Another issue Starbucks is likely to face is that Indian consumers are going to be more price sensitive than their Chinese counterparts. Average incomes in India are half of those in China and the number of millionaires is one-tenth. Maintaining a fine balance between brand perception and prices will be a tricky issue for Starbucks.
India is the largest producer of coffee as number6 in the world but coffee lovers concluded that coffee beans from India is inferior than coffee from Indonesia and Africa. If Starbucks will fight price, they have to use coffee bean in India. If they want to import coffee beans themselves, they will pay tax at least 100%.Another element that needs to be changed is milk, because the Indian drink dairy buffalo milk
Starbucks try to entering in Indian market in many years. But they can’t enter because without permission from the authorities and a negotiation for partnership is not perfect. In 2002 Starbucks informed for the first time that planning to enter India.
1. Coffee Industry and company situationCoffee industry is the most widely trade in the world. Coffee beans in the world market are increasing. In the period 2009-2010, coffee exports that estimated US$ 15.4 billion. The exporting members of the International Coffee Organization are responsible for over 97 percent of world output. Starbucks is currently one of the top competitors in the coffee industry. In order to better determine Starbucks situation in the specialty coffee industry it is important to look qualitative and quantitative at its current strategy. Starbucks has done many things to help its company grow and expand into the transnational business that it is today. As coffee shops may be nearing saturation point in the US and Europe, Starbucks has identified the potential to expand in emerging markets like a India. The coffee industry expected to continue growing through at least the year 2015 and even longer in emerging markets.India won’t be easy for Starbucks. It not only has to introduce products suited to the local tastes but also must take into account that India traditionally has a tea-drinking culture. India was the largest producer and consumer of tea in the world. Coffee was third in the hot beverage market. India’s per-capita coffee consumption stands at a mere 82 grams annually, compared to 6.8 kg for Germany or 5.9 kg for Brazil. Another issue Starbucks is likely to face is that Indian consumers are going to be more price sensitive than their Chinese counterparts. Average incomes in India are half of those in China and the number of millionaires is one-tenth. Maintaining a fine balance between brand perception and prices will be a tricky issue for Starbucks.India is the largest producer of coffee as number6 in the world but coffee lovers concluded that coffee beans from India is inferior than coffee from Indonesia and Africa. If Starbucks will fight price, they have to use coffee bean in India. If they want to import coffee beans themselves, they will pay tax at least 100%.Another element that needs to be changed is milk, because the Indian drink dairy buffalo milkStarbucks try to entering in Indian market in many years. But they can’t enter because without permission from the authorities and a negotiation for partnership is not perfect. In 2002 Starbucks informed for the first time that planning to enter India.
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