Competitive and Strategic Analysis Case Study Example | Topics and Well Written Essays - 1500 words

Competitive and Strategic Analysis - Case Study Example A critical analysis of the case shows that disposable income is concentrated in urban areas among the middle class. However, it can also be noted that this class is comprised of people between the ages of 25 and 40. On the other hand, it can be seen that India’s population is regarded as one of the youngest in the world. For instance, it has been observed that as of 2000, about one the country’s population was below 15 years. Whilst this is the largest group, it can be seen that these people have less disposable income hence they may not afford the luxury to go to coffee shops. The average age in India is pegged at 29 compared to other countries across the globe. The majority of the people in India are those still working to so they cannot afford to visit coffee shops. This is likely to impact on Starbucks’ endeavour to establish business in India. However, Starbucks recently partnered with Tata Global Beverages Ltd to open a store in New Delhi. The financial per formance of the company in this country is not yet fully ascertained since it is still on the stage of penetrating the market. Apart from being an emerging economy in the world, India faces numerous constraints that are likely to pose a challenge Starbucks when it intends to enter this market. For instance, country has poor infrastructure and this may impact negatively on Starbucks. The regulations in this country are also stringent such that they may pose a challenge to this company when it plans to penetrate the market. The company should comply with rules and regulations of the country if it intends to successfully launch a business. In case of India, it can be seen that it is open to foreign investors to start business but the problem is that some of the regulations may not be favourable to the company. The other problem characterizing global retail index of India is that the industry is not that lucrative compared to other international destinations. As of 2006, India had a sco re of 55% in terms of risk of opening business there. When there is high risk in a country, it may not be wise for the company to open business in that particular area. Therefore, this may not go down well with Starbucks and this is the reason why it is procrastinating in terms of starting business in this country. The company may experience unprecedented loses if the level of risk is very high. Therefore, it is important to carry out feasibility studies in order to establish the level of lucrativeness of the industry. Failure to do so may impact negatively on the company. India’s market is saturated though it is attractive. This entails that competition is very high and it may be difficult for Starbucks to operate viably in this market. It can also be noted that there are other substitute products like tea which are very popular in this country. There are also other beverages that can be consumed by the customers in place of coffee. When there is stiff competition in the mar ket, it may be difficult to attract many customers during the preliminary stages of the product in the market. However, if the product is well received in the market, it may quickly gain popularity among the customers. This can help the company in the long run but as it stands, it seems that Starbucks is facing numerous challenges that can impact on its endeavour to penetrate the Indian market. When competition is high, the players in the industry compete for the same customers. Other established companies can