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India’s brewing coffee battle pits Starbucks against Pret for share of growing market

  • Using evidence from the article, explain why so many international brands are seeking to enter the Indian coffee retail market

  • Using concepts from game theory and information from the article, analyse the possible impacts of the race for market share among the coffee retailers in India

  • How can individual brands use differentiation and marketing to compete in the Indian marketplace?

  • Evaluate the most likely type of market structure for the coffee shop industry in India in the long term. You should consider the importance of economies of scale and the possibility of the coexistence of large and small firms in your answer

  • Using information in the article and your own research, compare the price of a Starbucks coffee to a European country. Is Starbucks price discriminating across different markets and if so, what enables it to maintain this strategy?

  • International brands forming franchises or partnerships with local partners could be described as what type of integration? What are the benefits to international brands of adopting this approach?

Andrew Smith, Shenzhen College of International Education

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