Posts Tagged ‘joint venture’
Starbucks And Tata Group Joint Venture
According to the Associtated Press, Starbucks struck a deal to bring its coffee house culture to India.
Starbucks and Tata Group entered a joint venture agreement. Their mutual goal is to open 50 coffee houses in India by the end of 2012. Tata Group and its partners pledged to invest $80 million dollars in the venture.
So what makes this — or any other — joint venture a probable success for both parties? Here are a few key points to focus on in the case of this alliance…
– India’s population is large, growing and becoming more affluent. People are already spending money on luxuries such as premium priced coffee.
– India’s coffee market is estimated at $170 million and expected to grow at 30% a year for the forseeable future.
– Starbucks is a strong brand and a leader in this market. The company operates 17,000 stores in 57 countries world wide.
The alliance between Starbucks and Tata Group simply makes sense. A known company with a lot of clout expanding in a growing market teams up with a company that is established in that market. It’s a perfect match.
But what about you the small business owner who wants to joint venture?
Not as easy as you might think. The advantages Starbucks has include: It’s a known world wide brand with a proven track record of profitability.
However, as I state in my report Huge Business Profits, you can establish joint ventures even if you are a relative unknown. The key here is to find other non-competing businesses in expansion mode. Then approach them strategically with a hard-to-refuse offer.
