The Espresso Lane To Global Markets

Topics: Coffee, Strategic management, Developing country Pages: 4 (844 words) Published: March 3, 2015
The Espresso Lane to Global Markets
Christophe Reale, the managing director of Espressamente is concerned about the future growth opportunities and the presence of Espressamente in the global market. However, entering into the global arena required prioritizing the market where the company could exploit the potential market and devise successful strategies in gaining highest market share. Analysis of Situation Faced by Organization

Internal Analysis
SWOT Analysis
Illy has an experience of producing the world’s finest coffee while focusing its production on quality. Illy has strong international presence in over 140 countries with over 50,000 coffeehouses and restaurants. The company’s culture solely depends on providing quality coffee and to introduce innovative designs and new product ideas. Illy has been rated high in the Italian restaurants as it is the first mover to introduce the espresso machines to brew coffee in these restaurants. Illy applies a positive approach of zero defect in its production department which reflects the motto of the company that its setup is entirely focused on obsession for quality. Weaknesses

Illy has limited presence in developing economies which constitutes the majority of the sales worldwide. The company primarily focuses on developing economies where saturation of the market is at its peak and the company has failed to continuously innovate their products to sustain market growth. Illy also has a wide number of competitors in the market due to which it is becoming really tough for the company to stand out amongst the crowd. Opportunities

Until recently, the demand for specialty coffee has increased in both the developed nations and the emerging markets. As coffee is the second largest traded commodity after oil, an estimate of $70 billion of coffee is sold every year. In the United States, the sales are likely to increase by 20% each year, whereas, twice the ratio in developing economies....
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