They can either lower their prices to that of their competing companies,
or they could keep their prices and hope that they get a upper-class
market to bring success to Starbucks in India. What do you think would be the best decision they could make to prosper in India?
In my opinion, Starbucks should start their business over in India off with competing prices with the other local coffee shops, this will lure the young and upper-class crowd in from the start. If it's their decision to mark their prices up to what they are in America then that is their choice and either loyal or addicted customers will pay the new price or those that notice the extreme increase will take their business elsewhere.
Starbucks does serve delicious drinks and pastries but they are not any better than local coffee shops. Starbucks has an elite group of "regulars" and then others that go in to treat themselves or because it is convenient. It is way over priced for the size that you receive and if they charge those prices over in India where they are managing just fine without Starbucks now, I think they will have a hard time being competitive in that market.
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