Coffee Wars Cases – Ccd

Coffee Wars Cases – CCD

Bangalore Man who changed the Coffee Culture and Brewed $200 Million.

Mr. Siddhartha came from a family who owned 350 acres of coffee plantations in Chikmanglur. His journey started from working in JM Financial and then starting his own venture firm in 1985 and investing the profits in his coffee business, till 1980 he then owned 3000 acres of coffee cultivation and by 1995 became countries largest coffee exporter. 1996 was the year when the first Coffee Café Day (CCD) outlet was functional and by 2013 they owned 60% share in café Bars across India. The idea was to attract Indian youth and soon it became popular for not only selling Coffee but other snack items too.

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The journey from “ A lot can happen over coffee” to “a place between home and work, to hang out with friends”

PORTER’S FIVE ELEMENTS

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Questions:

What are the competitive advantages and disadvantages of CCD?

With reference to the entry of global players like Starbucks in the Indian Market, should CCD react aggressively or should it wait and watch? Please justify you stand on this.

• They should wait and watch because both target customers are different,

• CCD attracting hangout place for youths or considered as dating places and Starbucks attracting Young, middle to high income people and considered as professional meeting places.

• Starbucks will face challenges moving to Tier II cities due to their high pricing model as CCD is already well established.

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