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Esspressamente Case Study

Decent Essays

The Global Expansion of Espressamente Espressamente was created by Illy, the well-known inventor of espresso machine and producer of the best coffee in Italy. As the competition of premium coffee industry has gotten aggressive, the managing director of Espressamente examined the expansion of Espressamente into the global market and the company’s future growth opportunities. The managing director considered international expansion into the markets with the highest potential, which were Brazil, China, Germany, India, Japan, the United Kingdom and the United States, This paper will conduct a CAGE (culture, administrative, geographic, and economy) analysis and examine a SWOT (strengths, weaknesses, opportunities, and threats) analysis to determine …show more content…

Even though Italy has a long history of high daily coffee consumption, Illy coffee successfully gained status as the best coffee in Italy. Illy has technologies and skills to detect a defective coffee bean and maintain a high quality of its coffee. Espressament already has opened several franchised coffee bars over 30 countries, and Illy also has been selling its coffee products in over 140 countries. Thus, they have experiences with international business, and Illy coffee is known all over the …show more content…

Brazil has some similarity on cultural aspect, high urbanization, high coffee consumption amount, and high projected market growth rate. The specialty coffee shops industry in Brazil is one of the fastest growing markets, and Brazilians’ interest of premium coffee has increased. The only concern is that it is difficult for foreign-based franchisors to find suitable master franchisees in Brazil. Therefore, Espressamente should consider of joint-venture partnership with a Brazilian firm to expand its business into

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