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Starbucks Expanding to India

Satisfactory Essays
Introduction
Millions of people around the world go to Starbucks every day for their cup of coffee, but it is more than overpriced coffee that brings people into Starbucks stores around the world. Starbucks offers a cheerful and friendly and helpful staff to assist customers in any questions or problems they might have with coffee or services. People buy Starbucks for what it represents and status symbol that comes with it. Although various business models exist, the principles and structure of Starbucks is a good model to follow for the success of national and global influence. India is one of the main sources of economic growth.
Starbucks plans
Starbucks plans to open its first store in India this year and also to begin to buy coffee from India (Bose, 2011). In India also one of the emerging markets around the world that becomes a country oriented spending. Due to the rapid economic development, the upper and middle classes are more able to spend money on coffee and other items that may not have been regarded as a necessity in the past. Coffee industry will grow at a fast rate and the company can accept the boundaries around the world will win the battle for market leadership among competitors. The most are obvious challenge that Starbucks is dealing with the current financial crisis in America. Many of the economic are crises on their own situation.
Economic environment faced by the business
Another challenge that Starbucks has faced in 2008 was the number of store closings. In July 2008, they announced to the public that they will be closing 600 stores in the United States. Starbucks set , store closures may differ depending on various factors, but not limited to risks associated with the final stages of a third-party agreements , expected cost savings, income tax and other benefits associated with store closures in the anticipated time frame at all . While Starbucks stores do close location, they did the right thing by first informing the appropriate stores but also let the public know what is happening. There are many press release that discusses this and what to do about it.

Another challenge that Starbucks is are dealing with a competitor. There are coffee shops that many around the world and could stand to generate customer is important. Their main competitors are Dunkin Donuts, McDonald's and nestle. It is important to Starbucks know their competitors and what they are doing.
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