Revolution in India's Coffee Retail: TATA and Starbucks in a Strategic Alliance

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Introduction to Business
Submitted to:
Miss. Rabia Hassan
Assignment # 1
Section: K
Topic: Strategic Alliance
Tata and Starbucks
Group Members:
* Khubaib Yaqub
* Rana Zeeshan
* Momna Ahmad
* Iqra Pervaiz
* Aimen Naqvi
* Iqra Tariq
* Huma Akram

Indian Coffee Industry:
India is the fifth largest producer of coffee in the world, producing more than four percent of the world’s coffee, with the bulk production in southern states. In India the average coffee consumption per day is estimated to be ten cups per day. Only India produces its coffee in indoor facility. Indian coffee has a unique historic flavor and aroma. Tata Coffee:

Tata produces coffee on its private land. They process the beans and export green coffee. Tata also manufacture and exports Instant coffee.

Starbucks is an International chain of coffee and coffeehouse based in Seattle and Washington. Starbucks prefers quality over price and is specialized in coffee and related beverages. Starbucks does the business of coffee, Italian-style espresso beverages, cold blended beverages, high quality teas and coffee related equipment and accessories.

About the Deal:
Starbucks is joining hands with Tata to set up stores in Tata group’s retail outlets and hotels other then sourcing and roasting beans at Tata Coffees Kodagu facility with its particular process. The deal includes opening cafes, roasting and sourcing beans. Both Tata and Starbucks will have to solve the franchisee-led business model of Starbucks. Both companies have agreed to set up a 50:50% joint venture of growing hot beverages in India Market with a name called “Tata Starbucks Ltd”. Starbucks will be operated and owned across India through this venture. Their brand name will be named as Starbucks Coffee “A Tata Alliance”. Tata and Starbucks have agreed to open 50 cafes in several cities of India in 2012 starting with Delhi and Mumbai. Youth of India has...
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