Analysis Of Illy Coffé Company Expansion In International Countries

2112 words - 8 pages

Introduction

Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.


Reasons for international expansion

The core business of “Illy Coffé” group is in the food industry, specifically in the coffee sector (detailed profile information can be found in the appendix). The major part of sales 88% (Prospectus, 2012) are concentrated on products based on coffee; furthermore, this sector is characterized for a strong dependence on price, strong competition, dependence of customer´s preferences and, economic factors (GDP, inflation, etc.); in fact, these characteristics denote a high risk of reduction of sales or profitability due to changes in customer demands, preferences or volatility of production costs.

There are several reasons or motivations that managers can argue to expand Illy overseas, first due to continuous need of looking for new sources of profit, second in order to reduce the impact if for example one of the previously mentioned risks come true. Regardless of the reason for expansion, it is important that the strategy adopted for the company will be aligned with their identity (Values); it is important to remember that Espresamente Illy was created with the purpose of providing a service based on the culture of “Italian Style coffee“ (Prospectus, P 44), where company not only offers traditional espresso, but also offers a variety of other products largely based on coffee.

In conclusion, Illy´s expansion might be considered taking advantage of the good moment of coffee sector within Illy has brand recognition. Stimulus for making the expansion can be found in the monthly coffee market report of the international coffee organization. The report shows the attractiveness of industry; for example, the world consumption of coffee has been increasing in recent years and expectations is that this trend will continue; Additionally, the composite price of the several types of coffee indicate a tendency to downward; therefore, the production costs of coffee products could be diminished in accordance with the price reduction of coffee bean.

In order to achieve and maintain a competitive advantage firms need resources and capabilities than permit establish a strategy. Competitive advantage of Illy is based on differentiation through innovation; sources of that can be observed in the fact of being recognized as the producer of the finest tasting coffee around the world, promoting the culture of coffee, with a strong brand...

Find Another Essay On Analysis of Illy Coffé Company Expansion in International Countries

The small countries in the International Relations

680 words - 3 pages Untitled The small countries in the International Relations Northwith standing the quantity of small countries all over the world they are still less studied. In the theory of the International Relations the interest over the problems of small countries increases but slowly. There is no final answer to criteria of determination of the type of the small countries. A small country , first of all is weak in view of military and

Analysis of the Axzon Company in Ukraine

1561 words - 7 pages if people will not stop to harm the environment and control companies that having dangerous activities. One of the striking example of negative impact on environment is Axzon A/S company in Ukraine. Axzon A/S is an agriculture and food production holding company that has its divisions in Denmark, Poland, Ukraine and Russia. The company has more than 730 000 pigs, arable production based on 27 000 ha of land, more than 41 tons of meat and meat

RANDSTAD HOLDING NV FUTURE INTERNATIONAL EXPANSION STRATEGY IN IRELAND

2242 words - 9 pages till date. They acquired Vedior in 2008 and integrated Vedior successfully in 2009 and over the years they have acquired various other companies that made them grow into the second largest HR service provider worldwide. Randstad’s aim is to be a world leader in matching demand for and supply of labor and HR services. Ireland would be a good international expansion choice as they are one of the most economically globalised countries in the world

The Strategic Risks and Financial Strategy of International Market Expansion

1486 words - 6 pages diverse countries. The Mars, Inc. utilizes international banking system account to accumulate currency or revenue to remain advantageous of rates and taxes. According to economics Functions of the financial market permits transfers of funds from business without investment opportunities to one who devises them, it benefits in facilitating levitation of capital. In addition financial market has the capability in transferring of liquidity, adjustment of

Information Technology and Expansion of the European International System

2860 words - 11 pages information across time and space. This paper will analyze the role of IT in the expansion of the European international system. Specifically, the analysis will look at the effect of IT on international security and socio-economic development. Within the realm of international security, several concerns over the role of IT arise. First, what new risks are associated with the development of IT in terms of national security as well as international

London Calling—An Analysis of Existing Expansion

601 words - 3 pages between fast food restaurants and casual dining restaurants. The new innovative concept was able to steal customer traffic from the top traditional fast food chains. In recent year, we are continually seeing positive growth, through adapting to the sensibilities of new consumers and utilizing local suppliers. As a result, this risk will not be a big concern as Chipotle has already demonstrated its ability to handle international expansion

Advantages and Disadvantages of Giving International Aid to Poor Countries

2324 words - 9 pages more disadvantageous than beneficial to the nations. This point is argued through an analysis of the advantages and disadvantages of giving international aid to the poor countries with appropriate examples drawn from various regions of the world to prove the stance. International aid furthers economic laziness among the poor nations, making them stay longer in poverty when they could work ways easily out of the situation if left alone to find

Company Analysis of RadioShack

882 words - 4 pages Asia, including China and Malaysia. The opening of these concept stores will accompany at least 1,000 franchise stores that will be opened in Malaysia. The expansion into Malaysia is due to RadioShack’s agreement with Berjaya Retail Berhad in March of 2012 (MarketLine, 2013). This will open stores spanning ten Southeast Asia countries in the first ten years of the agreement. II. External Environment A. SWOT Strengths • Strong relationships with

The Hisotry of the International Paper Company

612 words - 3 pages International Paper Company is the world's largest pulp and paper company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. When it started out on January 31, 1898 in Albany, New York, it was through the merger of 17 pulp and paper mills ranging in size and technological advancement and capabilities. However, even then International Paper was a leader in the industry as the nation's largest

Levels of International Analysis

1796 words - 7 pages in desperate need of international aid to help feed the Haitian people and establish peace within the nation. The nation was overwhelmed with political unrest and as a result, President Clinton sentthe troops in 1994, not only to aid in the enforcement of the U.N. resolution but also to halt a flood of Haitians fleeing in boats to the United States. Along with the United States, 20 other countries aided in the mandate of the U.N. and fulfilled

Analysis of poetic techniques in The Company of Lovers

1085 words - 4 pages has haunted her poetry throughout her years. The fear of death and loss has been expressed in 'The Company of Lovers', which was published in 1946, after Wright saw the influence of the Second World War on Australia. Judith Wright's success in translating human existence into poetry has resulted in a rich creation of exuberant expression and sincerity. Her poetry has the ability to connect reason and emotion through various poetic techniques in

Similar Essays

International Expansion Of Ufc Essay

3573 words - 15 pages challenges. And this becomes the biggest problem at the process of UFC development. In this report, the SWOT model will be used to analyze why UFC wants its events to be perceived as show and how to managing its business. The ethnocentric orientation company – UFC, how to use the global integration strategy to promote its event and manage its expansion. The RBV method which called resource based view will be used to identifying UFC Strategic

Title: International Expansion Into Japan Its An Analysis Of The Environment Of A Country (Japan) And A Leading Australian Organisation In The Retail Sector (Harvey Norman)

2778 words - 11 pages . typists and manual workers in heavy industry and agriculture), creating new jobs such as the IT industry which retailers need to provide themselves with regular inventory systems analysis, and even externally to the customer themselves. This gives new habits and cultures such as chat, cyber-space and cyber citizens if the customer were to purchase a PC. While also giving the advantage of an Australian based company (H.N.) the luxury of cheap

Expansion Of The Piedmont Triangle International Airport

1148 words - 5 pages Expansion of the Piedmont Triangle International Airport There has been much controversy involving the changes that are soon to come to the Triad involving its political growth and economy. While some argue that the major change ill greatly boost our economy, others argue it will only make out economy worst. Fed Ex wants to open a 500 million dollar hub by the year 2009 that would eventually run 126 flights in and out of the airport each

The Small Countries In The International Relations

616 words - 2 pages The small countries in the International RelationsNorthwith standing the quantity of small countries all over the world they are still less studied. In the theory of the International Relations the interest over the problems of small countries increases but slowly.There is no final answer to criteria of determination of the type of the small countries. A small country , first of all is weak in view of military and political development. This