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Case Study

Starbucks: Saturation in the USA and Tremendous Potential in India

Before entering in the Indian market in 2012, the starbucks corporation was already a billion dollar company. Let’s understand What is happening with Starbucks in the USA and India.

The company is known for its premium coffee brand. That is not easily affordable.

Starbucks corporation is an American coffee and coffeehouse chain. The company was founded in 1971 and currently operating in more than 30,000 locations worldwide. The company sales about 57% of the coffee market in the world!

With an investment of $78 million, Starbucks corporation entered in India in 2012. The company partnered with one of the most reputed brands in India Tata.

The Indian units of the company are managed by Starbucks India. That was formerly called Tata Starbucks Limited and now called as a part of Tata Global Beverages Ltd. Hence, in every store of Starbucks in India, we see “A TATA Company” at the holding board.

What is happening with Starbucks in the USA and India?

Saturation in the USA:

Most of the revenue of Starbucks comes from the United States as the company has expanded the business mainly in the USA in the initial years. Till now, there are more than 14,000 stores of Starbucks in the USA alone!

Currently, Starbucks has reached to the saturation point in the USA. There are already many stores in the country and hence the demand for Starbucks has not been increasing for many years.

Also read: Why Netflix is Struggling in India?

Eventually, the company is facing difficulties to grow the business.

The growth had been slowing and the company somehow wanted to boost its business again. Even after having high purchasing power parity in Europe and the UAE, the company decided to focus on Indian business.

Tremendous Growth Potential in India:

India is a country of YOUTH. The place where influencing people is the easiest thing. It becomes easier when there is a strong brand reputation. Tata and Starbucks provide the most authentic, reputed and trusted branding for the company.

In order to grow and maintain its consolidated business, Tata Global Beverages Ltd has already started on building more stores of Starbucks.

The company will not able to get higher revenue as much as the United States but in the long run, Starbuck can create a huge market in India as the country has wonderful potential.

To know more about the company and business. Watch this video.

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Thank You

Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

View Comments

  • Starbucks urning money in India motly from youngsters but for there price of money is so high so somany youngsters avoid it.

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Anuj Vohra

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