Espressmante: in the Fast Lane

Only available on StudyMode
  • Topic: India, Coffee, Coffea arabica
  • Pages : 3 (871 words )
  • Download(s) : 327
  • Published : May 1, 2013
Open Document
Text Preview
ESPRESSMANTE: In the fast lane
Qu.1In which country should Reale expand first? Why?
Ans.1A deep analysis of Statistics, Consumer Behaviour and Socio-Economic factors make India a highly favourable market for ILLY. Taking into account Exhibit 2, 3 & 6 [The Espresso Lane To Global Markets] and deductions from the PEST Analysis, following are the reasons backed by valid justifications. PEST ANALYSIS (The New PESTLED)

Criteria Examples Current Legislation Future legislation Regulatory bodies and processes | PoliticalIndia has been liberalizing FDI policies since 1991 which makes it one of the most lucrative markets in the world. India stands 4th in most attractive FDI destinations in 2011-12. {E&Y Annual Report}. Taking into account Exhibit 2, 3 & 6 {The Espresso Lane To Global Markets}, even though Illy could not maintain its growth in Year 2011, India is still a booming market for coffee. The Indian govt. has approved several banking reforms, including 100% FDI for Tea & Coffee MNCs. This motivated Starbucks to form a Strategic Alliance with Tata in Jan, 2012. In the absence of any other major International player, it is the best time for Illy to hit the Indian market.The FDI Regulatory bodies like Foreign Investment Promotion Board have become more proactive and liberalized. For eg. FDI proposals upto US $ 10 billion now do not need approvals from Cabinet Committee on Economic Affairs. With these figures, Illy can make a considerable test-investment in India.| EconomicalAs of 2011, India stands 3rd in terms of Purchasing Power Parity. {International Monetary Fund Report, May 26, 2011}. Such statistics are very inviting for Illy.Being a mix of temperate & tropical country, India has the advantage of high demand of coffee in all seasons. While Illy can exploit its original recipes in cold seasons, it can innovate some coffee beverages for the hot season.India is the 4th largest consumer market in the world. {UNCTAD, 2011}. Also, India...
tracking img