Introduction
Selecting a proper market entry strategy helps the company to create successful business in the market. This Starbucks case study assignment help paper presents the importance of Starbucks market entry mode and also discusses the cultural impact on the expansion of the company in Indian market.
Entry strategy into a foreign market
As per Marketing Assignment Help experts, Joint venture strategy is an agreement between two companies in order to coproduce 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 (Masterson & Tribby, 2008).
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 (Starbuck Newsroom, 2012).
Western businesses thrive (have thrived) in India and others do not (have not). What are the success factors for doing well in Indian markets
India is a growing market for the western companies. Most of the western companies are expanding their business in the India. It is because the size of population and the growth opportunity are continuously increasing that make India as an attractive place for the western companies to expand their business. Accoring to human resource assignment help experts, In India, availability of human resources at lower cost is also a major factor that attracts western countries to create successful business. Some countries such as Arab, only few companies are interesting to expand their market in India. It is because the working culture of Arab companies is different to the culture of the India. It creates the problems for companies to create effective business in the Indian market (Khanna, 2007).
Governmental policies and rules play an important role for the western countries to do their business in effective way in the Indian market. Western companies also get low rate human resources for the operational and marketing activities in India that helps the companies to generate more profits from the market. Most of the western companies in India select the local management team to operate business. It helps them to develop the understanding about local tastes and preferences that is also helpful for the companies in doing business successfully in the Indian market (Guinness, 2011).
Culture in India. How does culture impact the expansion of U.S. businesses in emerging markets
India is a very large and attractive country in which many business people have western style education. In large cities in India, business meetings and entertainments are conducting as in western countries. The population of India divided in three classes or category such as upper class that includes the rich people, middle class that includes the skilled people and the third is poor people. Most of the population comes in the second class or category, which is skilled in their fields. The business culture of India mainly believes in creating social welfare rather than meeting profits. India is a challenging country to do business because in India, businesses are done with the help of relationships with one person to another (Misra, 2009).
Our Strategy Management Assignment Help experts says that culture plays an important role in expansion of US business in emerging market. Without having the detailed knowledge of emerging markets’ culture, US companies are not able to create effective operational as well as marketing activities. Culture impacts on the management style of the companies in emerging market and influence the business. Without the understanding of local culture, companies are not able to develop their knowledge about the tastes and preferences of the local customers. It impacts on the long term relationship of the company and create the problem in doing business in the emerging market (Millar, 2006).
Briefly discuss what you would expect to be on Starbuck’s “to do list” as it expands into India. In other words, if you were in charge of this effort, how would you proceed
Business plain assignment help: In order to expand the business in India, company will create huge R&D operations to generate the knowledge about the tastes and preferences of the Indian customers. It will be helpful for the company to improve the products and services according to the needs and demand of the local customers. In Indian market, company will also consider the internal as well as external environment of the outlets. It will be helpful for the company to attract more local people towards the different outlets in the geographic area. In its list, company will also consider the diversification of business. It will be helpful for the company to attract different age group of individuals towards the products and services of the company at outlets.
In order to expand the business in Indian market, company will make strategies to purchase the material from local farmers. It will be helpful for the company to increase in the popularity of the outlets in different geographical area of India. To implement these activities, company will recruit the skilled and experience employees for the work. It will be helpful to improve the efficiency of the company that will be helpful to expand its business in the Indian market. To improve the environment of outlets, company will consider soft music, play corner for children, etc. It will be helpful in attracting new customers and also helpful in improving business of the company.
Discuss the knowledge, skills, experience, and personal qualities one from Starbucks should have in order to make a valuable contribution to the company’s expansion into India
In order to expand the business in the Indian market, company should have the knowledge of Indian market conditions. Market conditions include the location of outlets, behavior of customers, tastes, preferences, etc. It can be helpful for the company to improve the products and services according to the customers’ needs and demands. Company should also involve some experienced and skilled employees in the management team. It is because skilled and experienced employees help the company to create effective and proper co-ordination between local employees and workers. It can be helpful in dealing with different types of customers and their needs in the market.
Personal qualities of employees also play an important role for the company to expand its business in the Indian market. Company should create more concentration to develop the personal skills and knowledge of the local employees. It can be helpful for the company to manage the operational as well as marketing activities in order to attract customers in the market.
Conclusion
From the above discussion, it can be concluded that joint venture entry mode helps the company to develop the understanding about the behavior of Indian customers. In order to expand the business in the Indian market, company should hire skilled and experienced employee team that helps the company to influence the mind of customer and attract them towards outlets.
References
Guinness, P. (2011). Geography for the IB Diploma Global Interactions. UK: Cambridge University Press.
Khanna, T. (2007). Billions of entrepreneurs: how China and India are reshaping their futures–and yours. UK: Harvard Business Press.
Masterson, M. & Tribby, M. E. (2008). Changing the Channel: 12 Easy Ways to Make Millions for Your Business. USA: John Wiley and Sons.
Millar, R. (2006). Doing Business with India. UK: GMB Publishing Ltd.
Misra, G. (2009). Psychology in India Volume 2: Social and Organizational Processes(HB). South Africa: Pearson Education India.
Onkvisit, S. & Shaw, J.J. (2008). International Marketing: Strategy and Theory. UK: Taylor & Francis.
Starbucks Newsroom (2012). Tata Global Beverages and Starbucks Form Joint Venture to Open Starbucks Cafés across India. Retrieved 11 February 2012 from http://news.starbucks.com/article_display.cfm?article_id=616