The Espresso Lane to Global Markets
(10 pages of text)
Founded in Trieste, Italy, Illy marketed a unique blend of coffee drinks in over 140 countries and in more than 50,000 of the world’s best restaurants and coffeehouses. The company wanted to expand the reach of its own franchised coffee bar, Espressamente, through international expansion. Potential markets included Brazil, China, Germany, Japan, India, the United Kingdom, and the United States. In 2012, the managing director of Espressamente knew that global expansion meant prioritizing markets, but where did the greatest potential lie? In addition to market selection, mode of entry was vital and included options such as exporting, franchising, and joint ventures. This case provides a practical example of the challenges faced in international business.
This case is appropriate for use in international business, international marketing, and business strategy courses to illustrate market selection and mode of entry strategies. It provides the opportunity to combine quantitative and qualitative data to determine which markets to select and which entry strategies to pursue.
- Allows students to evaluate potential markets using common business tools like CAGE analysis, SWOT analysis, and the GE and BCG matrices, and to apply the various models to select an entry-mode strategy.
- Encourages students to analyze the qualitative and quantitative data presented to the decision-maker. Asks students to prioritize foreign markets to determine the country which the decision-maker should enter next.
- Asks students to consider multiple modes of entry and the relevant environmental and organizational variables that should impact the decision.
- Identifies the drivers of international market expansion.
Accommodation & Food Services
Italy, Large, 2012
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