Factors Affecting Starbucks

Number 1

The political factor can be a potential threat for Starbucks given the extent to which government intervene in the economy creating rules and framework within which they should operate. These rules can either support and encourage business or discourage it. Political factors include areas such as environmental law, labour law, trade restriction and tax laws etc. to defend against such risk, Starbuks have to do some some background research about indias’ market and from that, they can assess and evaluate all the the level of political risk in the country before setting up operations. Another way Starbucks to defend against political factors is to negotiate terms and conditions in which they will operate so that in the event something disrupt operations there would be legal basis for recourse.

The economic conditions of the country of interest is a treat to entrants in that market; such factors as interest rates, exchange rates and inflation will impact on the company given the nature of businees or industry they are in. With inflation and fluctuating exchange rate it will be costly for Starbucks to import coffee beans, they would have to consider buying coffee beans locally from small farmers and aslo provide funding to these small farmers to make farming improvements to cultivate better quality coffee beans given the economic conditions affecting them as well.

Number 2

Technology can translate into significant opportunity for Starbucks given that india is not technologically. Tapping into a market like this offering technological services at shops will send a strong message to customers as well as rivals. For Starbucks to leverage technology, they will have to ensure that the infrastructure is in place and if the infra...

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...time, marketers have to know if it will be feasible given the nature of the market, consumer buying behavior, competition, and other environmental factors like economic conditions and government influences. They will have to decide how they will position the product versus competing products in terms of quality and price; whether it is premium price or economy price.

Product &Portfolio Management: Starbucks have to review their product offering and determine if the Indian sociocultural society would accept their product offerings. They will have to decide if they will offer an existing product in the new market or diversify in terms of adding Indian variation to the product line. To determine this, Starbucks would have to do some market research to see how appealing their products would be to the Indian culture and would it be better to add Indian variation to thei