The Espresso Lane To Global Markets Case Studies Example

The Illy coffee company has managed to establish a successful business in the coffee market. This is clearly visible in the progressive growth realized by the company. The growth that the company has recorded is evident in its sales where there are an estimated six million cups of coffee consumption of their coffee on an average day. This consumption is recorded over the number of countries and in their coffee houses and restaurants. Illy coffee company is noted among the best coffee companies in Italy which is its home country. This is in respect to the quality of coffee that they have continuously brewed in their coffee houses. The company has also made several improvements that target improving production and sales to maximize profit. Despite the desire to be among the world number one coffee houses and manufactures; the company like any other company aims at making profit.
The need to make changes has been inevitable due to the competition that has been brought by other coffee houses. The argument is relevant in relation to the position that coffee as a trading commodity has taken in the international market. Through proper analysis, coffee has been ranked as being one of the heavily traded commodities after oil. This among other factors is enough reason to push for changes in marketing strategies to maintain operation and maximize profits. These are the factors that create a need to make several analyzes that target improving the marketing strategies. The need to make new strategies is due to the competition staged by different coffee companies around the world. Other international coffee companies around the world and particularly in countries such as Brazil have shown a significant growth in coffee production and manufacturing. This has posed a serious threat to Illy as it can be easily outweighed overtaken which can dent its reputation. The Illy Company has been able to maintain the reputation that it has acquired and stay in operation due to the interest that they have created in coffee. This reputation can only be maintained if immediate action is taken. This is why there currently exists an opportunity whereby they can improve on its operation by making their company an international coffee brand. The strategy is attainable through making Illy coffee among the most consumed coffee in the world. This is possible in ensuring that the appropriate strategies are brought to the table and well evaluated to guarantee the success of the coffee company. In order to improve the company’s operations, the company’s managing director needs to select a proper mode of entry where the company’s potential will be well evaluated based on current market trends.

Mode of Entry

The mode of entry that should be considered by the managing director should be based on the objectives that the company aims at achieving. The CEO should clearly state the bjectives and should emphasize the company's aim of creating an executive destination that values quality. It is only through quality that the company can open its doors by attracting a new client base. Based on the analysis that has been provided regarding other coffee countries and coffee houses, it is evident that quality is an essential factor in the sector. The managing director should also focus on improving how the coffee is served. This is because coffee creates a good appeal if it is served ina unique manner. It is through creating an appealing serving that there will be ultimate customer satisfaction and attracts new clients. The proper coffee serving should be dark and short with perfect foam that will provide an interesting look. This is because it is evident that coffee is a unique beverage that should be served in style and class. The targeted market also requires the provision of excellent services Illy coffee company aims at mostly opening up to the middle and high-class members of the society. The argument is made clear through the CEO, who states that there will be added luxury retail stores.
However, despite the factors that have been stated, the most relevant objective to be considered by the managing director in coming up with a mode of entry is that the company aims at being a stand-alone brand. The most appropriate mode of entry to be considered based on this aim is direct franchising. This is attributed to the advantages that this mode of entry offers to the company where there is a win-win situation for the parties involved in the direct franchising. In direct franchising, the franchisor provides all the required materials that are required in maintaining operations. The franchisor will also be reliable with the responsibility of providing support and training to the franchisee. However, it is the franchisee that is required to make payments that will ensure that the company’s trademark or services are licensed. Through this mode of entry, the franchisor will provide a way for the expansion of the business in the area of choice with little or no risk involve. The franchisee benefits in the sense that they get a wide range of benefits which include; a proven brand, established client base and experienced marketing expertise.
Environmental factors that need to be considered in selecting a proper mode of entry is the current market trends and location. This is due to the relevance that these factors will have in maintaining the operation and how they affect the company. It is evident that Expressamente is well established, and its marketing in other countries should be based on factors such as tourist destination. This is because it is mostly tourist’s destinations that have a large consumer base. This will be essential in ensuring that the company manages to attract the desired consumer group. The new luxury retail stores should be strategically located in destinations that are likely to attract the intended clients. Such place may be suburb residential areas in different countries and malls.
The organizational factors to be considered should be evaluated based on staff, productivity, potential and the set goals. This has been clearly put through in the CEO comments regarding the goals that the company aims at attaining to make Expressamente an established Italian coffee house. The managing directors needs evaluate all the relevant organizational factors and environmental factors necessary in making the appropriate decisions. Through this, Expressamente will attain the objectives that it has set in reaching the global market. Expressamente will also be in a position attain the reputation it wants in being Italian coffee retailer that provides ultimate customer satisfaction. Expressamente has the potential of improving their business further if they pay attentions to the proposed strategies.