Essay about case study expresso

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Case 2: The Espresso Lane to Global Markets: Write-up

Characterized by quality obsession and a sophisticated system of shipping and crafting coffee, Illy has established its brand as a prime producer of fine tasting coffee. With the rapid growth of the coffee industry in various foreign countries, Illy hopes to implement a plan of expanding the reach of Expressamente, its franchised coffee bar, across certain premium retail markets. To do this, CEO Andrea Illy has designated 7 potential countries: Germany, Brazil, China, India, Japan, UK, and US for possible expansion. To make this decision, Illy will look for key success factors such as coffee consumption/concentration, purchasing power, and ease of doing business. After considering …show more content…

For a company whose name “purveys the original Italian cult of espresso” with a definitively unique quality product, it would be unwise to compromise its brand as a high-end luxury provider of coffee to appeal to a different consumer base. In addition, both countries produce problems in terms of convenience of market entry- China has various laws that can hinder growth and Japan has a very poor franchising sector. After eliminating the countries above, we were left with three countries: Brazil, India and the UK. Although India had the highest potential for growth, I felt that it was too early for Expressamente to invest in. Out of all the countries, India was the least urbanized and had the least income per capita of the top 10% of the population (Illy’s target market). Additionally, it was the worst in terms of ease of doing business. Clearly India is in the beginning stages of coffee industry growth and might be a good investment a few years down the line, but not currently. This left the decision down to two countries: Brazil and the UK. In the end, the UK won out as the top option. Although Brazil is a very enticing investment opportunity with a lot of forecasted growth and less competition, consumption per capita is still relatively low and, more importantly, the market is very difficult to enter. Britain, on the other hand, is very easy to enter, has a high urban population

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