Selecting a proper market entry strategy helps the company to create successful business in the market. This assignment help paper presents the importance of Starbucks market entry mode in in Indian market. Joint venture strategy is an agreement between two companies in order to co-produce and distribute a product in the different parts of the world. In the joint venture strategy, a separate entity is established that handle a joint venture agreement. It also helps the companies to create successful business in the country.
In joint venture strategy, companies can develop the understanding about the other company’s market. It can be helpful for the separate entity in doing its business in effective manner. It is because through the understanding of other company’s market, management can develop the knowledge about consumers’ behavior, tastes and preferences that help the company to perform its business in effective way. Starbucks choose joint venture with Tata Group in order to enter in the Indian market. The main aim behind selecting joint venture strategy is to develop understanding about Indian market with the help of Tata Group. It is because in India, Tata Group is a leading company, which has experience in beverage market. Joint venture strategy will also be helpful for the company to develop the relationship with the customers with the help of local player. It will be helpful in developing the profits of the company in the Indian market.
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