Efas and Ifas for Starbucks in India
Population: I think the bigger population is, the bigger market will be. As the second largest population country, India was one of the biggest markets in the world, so I weight it as 0.2. Cost of labor: From exhibit 3, I found that India’s cost of labor was very favorable. As a company, we can not only focus on how much we earn. We also need to know how much we spent, because the more we save, the more we earn. In conclusion, I weight it as 0.15. Availability of workforce quantity: From exhibit 6, I found that over 55% populations are 15-59 years in India in 2001, and this number will rise higher and higher in next 15 years. Therefore, there are many workforces in India. When Starbucks Company enters India, it will offer many work opportunities for Indians. It can make India government giving more support for company, so I weight it as 0.1. Less coffee retail: Less coffee retail will make Starbucks Company easy to enter the market, but not easy to get market share, so I weight it as 0.05. Global Retail Development Index (GRDI): From exhibit 9, I found that India was NO.1 GRDI in the world, and the most important part in GRDI is market saturation. India market saturation was 89/100. It means there is a big piece of cake in India, but not only Starbucks Company can get it, so I weight it as 0.1. Threats
The food habits differed across diverse religions and regions: In India the food habits differed across diverse religions and regions, so it is difficult for Starbucks Company to produce products. In food market, the company which catches customers’ stomach will win the market share. Luckily, Starbucks was focus on coffee; the different food habits will not influence too much, so I weight it as 0.05. Beverage market of coffee: From exhibit 12A, I found that in Indian beverage market, coffee only had 6.7% in 2001, and reduce year by year. In 2005, coffee only had 2% market. As a coffee company, if India didn’t have big market share for coffee, it is terrible for Starbucks, so I weight it as 0.15. Café Coffee Day (CCD), Qwiky’s and Barista competition: These are three biggest competition companies for Starbucks in India. As a fresh man in India, Starbucks need do more and better than others, or people will not change their habit to go to a new coffee shop, but competition also promote improve, so I weight it as 0.05. Liters Per Person (coffee): From exhibit 12B, I found that as a Indian, they drunk more than 20 times tea than coffee. Starbucks need make people drinking more coffee. I weight it as 0.05. Per Capita Consumption of Coffee in India –State-wise: From exhibit 13, Per Capita Consumption of Coffee in India was not big, and it reduced year by year form 1981-2001. As a company, the first target is earning money, so if people don’t want to spend money on your company, company will not run well. I weight it as 0.1.