Coffee Wars In India: Cafe Coffee Day Takes On The Global Brands Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Culture of coffee in India:

During the past decade, a major switch in the Indian market has been seen. A grand market and demographic shift have been observed in the coffee market in India. Initially, the country was known as a traditional tea drinker but it is a fact that there are more coffee chains than tea, and now consumers have shifted more towards drinking coffee. As of now, the consumption of coffee has been shifting towards northern cities of India as well. Talking about younger teens and the younger generation of India, so they are now more likely to go to the café and coffee shops rather than going in parks or pubs for meeting as it becomes a more famous meeting place for youngsters. During the past decade, the coffee culture has been promoted to its next level and now youngsters in India prefer coffee more than tea. The term coffee culture in India can be defined as a series of some particular behaviors or a social impression that rely extensively on coffee because coffee has played as a lubricant to increase the social behavior in the Indian market.

With the passing years, the coffee shops and cafes in India are increasing with 200 new coffee shops added annually. Gradually, customers in India are shifting to coffee from their traditional beverages like tea. The coffee consumption in India is more in the southern regions as compared to the northern regions. In addition to that, this trend is limited not only in the coffee shops or café but followed by the Indian households as well. Shifts in these kinds of trends leads towards globalization and urbanization. Furthermore, it also helps India to expand its middle class and a rise in the disposable incomes of Indian individuals that in turn will lead to change in lifestyles.

VRIO analysis of Starbucks and Café Coffee day:

Special Coffees:

The company is famous for offering several satisfactory and entirely unique drinks and beverages in their coffee shops. These unique beverages cannot be offered by other competitors. Specialty in coffees is not rare as they are offered by other competitors as well. As the resource is not rare, thus it can be easily imitated by the competitors. The company is effectively and efficiently utilizing its resources, and that leads to competitive parity.

For CCD, they are providing specialty coffees therefore; the resource is highly valuable for them, but the resource is not rare as any other companies can go for special formulas for making coffee. It can be easily imitated, but the company is making full use of its resources.

International presence:

Being an internationally famous brand is one of the most valuable and important resources for any organization. The company has its international presence in more than 62 countries and thus the resource is said to be valuable. The resource is rare as well as there is no other coffee company with such a vast global presence. In addition to that, achieving such a large global presence is not an easy thing and so cannot be imitated easily by the competitors. As of now, the company is taking proper advantage of these resources that lead to competitive advantage.

CCD is not a global brand and thus this resource cannot be applied to them. This resource is neither valuable nor rare for the company and cannot be imitated as well.

Upscale and classy ambiance:

Maintain an upscale and classy ambiance and maintain the quality of it in all over the world is not an easy thing but Starbucks did it really well. The resource is rare as well because Starbucks is the only coffee shop with such a classy and sophisticated ambiance and atmosphere. The resource can be imitated easily as it will take no time for other coffee shops to make changes in the appearance of their coffee shops. As of now, the company is making a full use of this resource; therefore, it is achieving temporary competitive advantage.

Café Coffee Day successfully maintained a classy and upscale atmosphere in their cafes; hence, the resource is highly valuable but the resource is not rare and thus it can be easily imitated by the competitors. The company is making full use of it resources and achieved competitive parity....................................

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