Illy Case study, korrigiert PDF

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korrigierte illy case study , und ja keine Ahnung was ich noch schreiben soll...

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Illy Case study: If you were Christophe Reale, what market(s) would you choose for your international expansion? Conduct a Cage and a Swot Analysis and motivate your answer. Swot Cage Analysis – 7 countries  consider the cultural, administrative, geographic, and economic Distance Brasil  big potential China  cultural difference they have a more tea tradition, therefore it is something we have to take in consideration Germany – great idea to expand to Germany, because they consume coffee also very much and they appreciate the quality of a real Italian quality coffee India – Administrative difference, because it’s much more difficult to expand to India; India has almost the same problem as China, they have another tradition and culture and won’t accept the difference Japan – is also a tea drinking culture, but high potential for coffee consumes, geographical Distance, maybe it’s also difficult to find a good partner because of the language difference UK – tea drinking culture, but there is also many potentials to sell coffee, the popularity is growing US – 2 big Problems  Starbucks and the coffee culture is different to the Italian and the company illy, advantage = there are parts where many Italians live, and there would be definitely people to offer the coffee, for the real Italians, and also the Italian culture is very popular in all over the world, and there is a potential to offer real original coffee  if we can choose 3 countries to expand: Germany, Uk, because it’s growing and US  this 3 are faster and easier to enter India, Japan and China  there are more problems like the geographical difference, cultural difference, there are great opportunities

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Aggressive competition Starbuck, the Coffee Bean & Tea Leas, Costa coffee and independent coffee shops, McCafé, Lavazza, Tchibo, Segafredo A variety of environmental and legal issues surrounded the coffee industry as well – sustainable coffee production and human rights issues that affected the supply side of coffee Focus on Brazil, China, Germany, India, Japan, UK, US Brazil: Starbucks is successful, largest grower of coffee, 12 flight hours from Brasilia to Rome China: beverage industry is one of the country’s fastest growing sectors, te drinking culture, 11 flight hours Germany: coffee drinking culture, 2 hours India: tea culture, sixth largest producer of coffee, 8 hours Japan: Hot drink’s are higher than alcohol, Coffee fast gaining popularity, franchising sector had flattened out, in part of poor economic conditions, important aspect = identification of the right business partners, 13 hours

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UK: coffee industry grew stronger but a tea-drinking culture, but coffee drinking is growing - US: global leader for coffee; over 50% of Americans consuming coffee every day, Starbucks phenomenon created high demand, coffee enjoying in coffee shops, 9 hours - Selection process: o Coffee consumption o Coffee shop concentration o Income per capital o Urbanization rate o GDP o Ease of doing business rank o Most attractive segments o Coffee sales CAGE analysis: Country Cultural Distance Brazil

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China

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German y

India

Japan

Language

Administrative Distance - 11% foreign franchise

Tea drinking cultures - Customers prefer to eat and drink coffee, don’t like espresso because it’s bitter - High coffee consumptio n

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Aggressive competitio n

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2 hours

6th largest producer of coffee - Other tradition and culture - Hot drinks are

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Much more difficult to expand to India

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8 hours

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Difficult to franchise

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13 hours

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Hard to run a business - High competitio n - Difficult franchising system

Geographic Distance - 12 hours from Brasili a Rome to - 11 hours

Economic Distance -

Low per capita consumptio n

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Minimal togo sales

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15% per capita decline in consumptio n

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Ranked 3 for coffee

preferred

UK

US

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Tea drinking coffee - They prefer to drink in the morning black tea than a coffee - Cultural obsession - Coffee industry strengthene d by growing perception of health benefits

Innovation & packaging = key to growth - Franchise sector had flattened out - High competitio n

importing

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Competitor like Starbucks

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3 hours

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9 hours

SWOT Analysis Espressamente: Strengths: - 200 locations in 30 countries - Association with ILLY - Original Italian cult of espresso Weaknesses: - Limited experience in franchising Opportunities. - Coffee industry booming - Coffee export increased - New consumers inn emerging markets - Demand growing in both – developed and emerging markets Threats - Aggressive competition like Starbucks - High saturated and concentrated industry - Different cultures

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Recent growth remained stable...