Tuesday, October 29, 2019
Case Analysis Study Example | Topics and Well Written Essays - 750 words - 7
Analysis - Case Study Example Moreover, Starbucks will operate in a joint venture with the Tata group which has knowledge of the domestic market. 1. The pricing of CCD is lower as compared to Starbucks and there is a difference of almost Rs. 400 in the prices of the two companies. Therefore, CCD has a clear advantage over the Starbucks as far as the pricing is concerned. The products of both the coffee chains are up to the market. Both the companies deliver the quality product to its customers but even then Starbucks has slightest advantage over CCD as far as the products are concerned due to its global standing. 2. The supply chain of the Starbucks as well as CCD varies to great extent. CCD works on backward integration and instead of buying the coffee from the suppliers it manufactures coffee for itself. All the activities of the supply chain are controlled by CCD itself. CCD has neither any franchises nor it hires the staff through the third party. All the outlets of the company are controlled by itself and the employees are also hired and trained by CCD itself. On the contrary, Starbucks buys the coffee from the manufacturing countries instead of from the manufacturers. So the supply chain of the Starbucks starts from the buying of the coffee from the manufacturing countries and ends with the delivery of the coffee o the consumers. 3. The customers of Starbucks are much greater than that of CCD as far as its global operations are concerned. However, in India the current customers of CCD are much greater. CCD attracts all types of customers due to its effective pricing and diverse offering. The potential customers of CCD are also projected to be higher due to the trend of taking coffee among the youth of India and the pleasant environment provided CCD. At present the existing customers of Starbucks are lower but they might increase in future due to expansion of its network. 4. The customer service of CCD is great and helps it in retaining the large number of
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