Q1: Your assessment of Starbucks’s entry strategy
Knowing yourself and your competitors is very crucial. Assume you are CCD, what’s your assessment of Starbucks’ initial entry strategy and goal for India? What are Starbucks’ advantages? Can it replicate success from China to India?* SB’s Vision/Goal* SB’s advantages* Concerns about whether SB can enter the market successfully
Q2: Your assessment of CCD
Knowing yourself is also important for competitive dynamics. What are CCD’s competitive advantages as it enters into battle with Starbucks? What are some of disadvantages or challenges that it faces?
Q3: CCD Vision/Goals
If you were in Siddhartha and Medhav’s shoes, what are the most important short-run goals
Identify any of those vision/goals that conflict with one another?
What was his long-run vision?
Q4: Your recommendation
How would you suggest CCD to respond to Starbucks’ entry: Option 1 or Option 2? Why?
Option 1: Slight course correction* Stay and focus in the current positioning and target markets with continuous improvement
Option 2: Bigger, bolder investments in upgrading and aggressive reaction* Upgrading: Capture premium market before Starbucks do* Aggressive reaction: Destroy the enemy before it gets established
What are the rationales behind the options?