Page |1

Coffee as an International Business

Student Name
Professor Name
Course Name & Number
March 22, 2015
 Page |2

Table of Contents
INTRODUCTION ............................................................................................................................................. 3
SWOT ANALYSIS ............................................................................................................................................ 4
Internal Analysis ........................................................................................................................................ 4
Strengths ............................................................................................................................................... 4
Weaknesses .......................................................................................................................................... 4
External Analysis ....................................................................................................................................... 5
Opportunities ........................................................................................................................................ 5
Threats .................................................................................................................................................. 5
Products Main Source of Competitive Advantage In Australia..................................................................... 5
EXPAND THE COMPANY’S OPERATIONS ....................................................................................................... 6
Analysis on the Indonesia Coffee Industry ............................................................................................... 6
Make Analysis on the Japan Coffee Industry ............................................................................................ 7
INDUSTRY ANALYSIS...................................................................................................................................... 7
Competitors .............................................................................................................................................. 8
The Consumer Behavior ............................................................................................................................ 8
COUNTRY SELECTION .................................................................................................................................... 9
The Marketing Theories & Objectives of the Lion Jittery Company ......................................................... 9
REFERENCES ................................................................................................................................................ 10
 Page |3

COFFEE AS AN INTERNATIONAL BUSINESS

INTRODUCTION

Our company situated in Australia named Lion jittery coffee which is one of the world
largest hot drink organization. The lion jittery corporation one of the most successful coffee
chain, from last 20 years. By suing their best strategies to push up their business and also have
capabilities to compete with the competitors’. And now we want to introduce our product to
another country and expand business internationally (Metzger et al, 2013). Because coffee
almost in all over the world one of the favorite hot drink so in this regards the analysis is most
important that in which country this product have more demand and which have less demand for
this product. The lion jittery company focus is to create globalized business network and opening
new locations in all over the world. Currently the lion jittery company leading the retail coffee
markets by selling their coffee at reasonable price (Marketline, 2014).

Currently the lion jittery company has face many challenges such as it find out the a good
place in which they start their new business and also to determine the demand of the coffee
internationally and which country there are higher demand for coffee outlets so according to the
market survey the business is planned to expand internationally (Marketline, 2012).
 Page |4

SWOT ANALYSIS

The lion jittery company has faced many challenges and issues recently so if we
make its SWOT analysis then we can realize their internal and external environmental issues and
challenges which are very important to start business internationally (Marketline, 2011). So
identifying the good and bad potentials of the company is essential for every business while
moving forward. The internal and external environmental analysis of the lion jittery company as
given below:
Internal Analysis
Strengths
 The company has variety of strengths which is discussed below:
 High visibility location to attract their customers
 Company is operating with retail stores
 Motivated and valued workers
 Friendly and excellent working atmosphere
 Effective connection with traders
 Have also customer allegiance and devotion
 Establish logo
 Have copy rights
 Developed its own website
As above mention strong points the company shows that lion coffee company has many
strong points that’s why it captures lots of its market share and it has also capacity to expand its
business internationally. The company has also very high visibility location to attract their
consumers which is also a competitive edge for the company (Marketline, 2014).
Weaknesses
 Lack of internal focus ( more focus is to expand business globally)
 The number of competitors are increased
 Product pricing is expensive
 Cross functional management
There is a lack of focus on the internal improvement of the business because of the high
tendency to expand the business in the International market. Another weakness of the company
 Page |5

is that the cost of production and distribution is high which leaves the company to set high prices
which in turn makes the company lose in the market price (Saputo, 2015).
External Analysis
Opportunities
 Have opportunity to make expansion in the retail operations
 Use of technological advances
 New and advance distribution channels
 New products line
 Continue the expansion in the domestic markets
 New distribution agreements
There are opportunities for the company to expand the business in the retail market and
make more profits. The company has an upper hand over the rivals because of the use of the
advanced technologies, new and advanced distribution channels, new product line etc. which
make the company one of the best coffee companies (Marketline, 2014).
Threats
 The level of competition from coffee shops
 The instability in prices of the coffee in developing states
 There is pessimistic exposure from the inadequately treated farmers in the delivering
states
 The consumers tendency towards highly vigorous ways and also away from the coffees
 There are political and cultural problems in the foreign states
There are some threats to the company as the level of competition in the coffee market is
increasing as there is numerous new coffee companies are entering the market (Indonesian
Coffee Supply, 2015). The prices of the new companies are too low which is demanding our
company to lower the prices of our products but the costs of production and distribution is too
high which don’t let us decrease the prices of our products (Marketline, 2012).

Products Main Source of Competitive Advantage In Australia

The lion jittery australian company use different marketing which create the competitive
advantage for the company. It uses it uses the different marketing compaingns to promote its
products.the comaspny put banners on the Mtv and VH1 sites (Meyers, 2005). Also seeks to
 Page |6

target the youth by using the audience of MTv and also VH1’s oldewr audience. In 2009 the lion
jettery company hs to use different bill board on the seatle.
By use of its brand image in the mind of consumers the company use different
advertisements startegies on
1. Television shows
2. In the magazines, and
3. Also in the top internet websites.
It also makes strategies that will increse its brand image by using advertising the
speciality both in the traditional and nontraditional outlets.

EXPAND THE COMPANY’S OPERATIONS

Analysis on the Indonesia Coffee Industry

There is very challenging for the company is to choose one country for expands its
business globally because at the time of selection we have to make its overall market survey so
that the right place has been chosen for the company product (Saputo, 2015). I have made overall
market survey during these survey I have choose Indonesia for introduce our product inter
nationally during the analysis I have noted that that Indonesia is expected to introduce new
flavors of the coffee products (Marketline, 2011). There is tough competition people wants
change in the product so when we introduce our product in the Indonesia then people will enjoy
our coffee because we offer to them a variety of flavors according to their taste and need. The
Indonesia is a country in which new flavors people like to drink and also provide their coffee at
premium segment (Economist Intelligent Unit, 2012). So as a marketing manager of the lion
jittery company I have to choose Indonesia for expand our business globally.

Following is the retail sales of the Indonesia:

 Page |7

Make Analysis on the Japan Coffee Industry

After making analysis on the Japan coffee industry the consumption for tea is more than
the coffee in this country. The people of the Japan like to enjoy tea in their gatherings rather than
coffee. Now there has been change that the innovators of the Japan country in the coffee industry
introduce the different approaches to the customers to attract for the coffee. But there is no surety
that people give their positive response towards these innovations (Marketline, 2011). Now the
Japan introduced the café trends so most of the consumers now come for enjoy the coffee
(Indonesian Coffee Supply, 2015)at restaurants. But as compare to Indonesia then there is less
demand so we prefer the Indonesia country to expand our business in Indonesia (Marketline,
2012).

Our strategy to make business globally and also make product development, so in this
respect the Indonesia country suits for make product extension it creates value for the customer
and have more chances to capture the large share of market when we make product development
and made innovation to our product then it attracts to the customers because everyone like
change in the products (Bennett Alan Weinberg, Bonnie K. Beaker, 2001). They can enjoy
different flavors according to their taste and choice.

INDUSTRY ANALYSIS

In the tough competition there is very challenging to survive in the market and make
the stable position in the market. The market survey is very important in which the internal and
external factors are analyzed and also identified the key marketing strategies to promote the
product (Meyers, 2005). So the main important point is that the consumer behavior must be
 Page |8

feminized by the companies so that according to this the product is launched and also make
product marketing and make innovations (Metzger et al, 2013).

Competitors

The challenging point is that when any product is moving from the host country to
another country. Because every country has its own culture, business environment and market
demand for that specific product. So being a marketing manager I have made complete market
analysis in which I have find out our competitors which are discussed below:
1. Caribou coffee which has 415 coffee shops in the all over the world
2. McDonald’s Mc Café it has more than 31000 restaurants in all over the world

The Consumer Behavior

There are different consumer behaviors in every country. If we are talking about the
Indonesia consumer behaviors’ the there is significant variations in their behaviors for coffee
according to the regions. According to my research the buying behavior of the Indonesia is
homogeneous (Marketline, 2012). The Japanese people’s attitudes towards the coffee are slightly
different as compared to the other Asians countries. They like the drinks which have superior
taste, and which is safe and nutritious and also available at reasonable prices. They always prefer
to the quality based drinks and also they are ready to pay premium on the high quality drinks
(Marketline, 2011).
For promoting the consumption of the coffee in the Indonesia there is need to develop
different marketing strategies which promote its production and also promote the business
growth and development (Economist Intelligent Unit, 2012). The host country makes different
marketing tools to promote its products by using different campaigns (Meyers, 2005). Similarly
in the Indonesia there is needs to make analysis on the market key environmental factors then use
different strategies which promote the product internationally. According to the analysis the
establishment of the coffee in internationally the need of the consumer should be focused
(Economist Intelligent Unit, 2012).
 Page |9

COUNTRY SELECTION

Being a marketing manager I have chosen “Indonesia” country for starting business
internationally after making complete market analysis of the Indonesia. The Japan is not focused
because in Japan people like to drink tea as compared to coffee so the consumption rate is lower
as compare to the Indonesia. It is one of largest country for coffee producer and it is on the third
number in the world for coffee producer (Indonesian Coffee Supply, 2015).
The consumption rate rise from time to time in the Indonesia people like to enjoy
coffee of different flavors. But still there is need to make more investment in this sector. it has
avail the opportunity to exports the coffee to the foreign countries. The climate of the Indonesia
for producing the coffee is ideal. So the cost for producing the coffee is less in the Indonesia. The
main focus to establishing the business in Indonesia is to introduce the coffee in different flavors
to the consumers of the coffee (Rodriguez C. J.; Mayer Conclaves, M.; Area, V.M.P., 2004). So
that its attracts to the customers because the customers attracts to the change and when we
establish a restaurant in which different flavors are available for the customers it increase the
demand for coffee everyone drinks the coffee according to their taste.
The Instant Cofee Quantity & Amount Year Wise of Indone

The Marketing Theories & Objectives of the Lion Jittery Company

The main objective of the company is to develop the significant market share and also
increase the product development by introducing new high caliber products. Also to create value
for the customers and make position in the market as a leader in its particular field and also
provide best customer services which creates the customer loyalty (Marketline, 2011).
 P a g e | 10

The company is used the marketing strategy which promote the products and its main
focus what actually customer wants to drinks (Metzger et al, 2013). So to get the attention of the
audience the lion jittery company products the marketing manager use different marketing tools
and campaigns. For this purpose the television shows, the magazines, (Indonesian Coffee
Supply, 2015)Billboard and also the top internet website are used to promote the products. it is
very important because without awareness about the product the customer is not able to create
product image in their mind so different tools are used to promote the products and services
(Economist Intelligent Unit, 2012).

CONCLUSION

The Lion Jittery Company is going to expand its business by providing more quality
products to the existing market and find out some new markets. The company is going to select
one country that can use as target country for expanding the coffee business that the company is
dealing with. The company has to check the consumer behavior and competition and other
factors in that country and in the coffee industry in order to expand its business. The country that
is recommended at the present time for expanding the business is Indonesia where there is a great
potential market for coffee as the people in Indonesia have the habits and fashion of having more
varieties of coffee. Moreover the strengths of the Loin Jittery Company are also matching with
the opportunities that are available in the Indonesian markets.

REFERENCES

1. Marketline (2012) Coffee Industry profile and Analysis. Available at: Marketline
Advantage Database. Retrieved March 22, 2015
 P a g e | 11

2. Marketline (2014) Coffee Industry profile and Analysis. Available at: Marketline
Advantage Database. Retrieved March 22, 2015
3. Metzger, Genève Brown; Stephen Metzger (2013). "Technology and Economic
Integration"
4. Rodriguez C. J.; Mayer Conclaves, M.; Area, V.M.P.; "Importance do Hybrid de Timor
Para o territorial e Para o melhoramento day cafeicultura sundial"; Revisit de Cadencies
Agrarians, 2004. Vol. XXVII, Numerous(s) 2/4. pp 203–216.
http://pascal.iseg.utl.pt/~cesa/Jornadas%20Timor-vers%E3o%20final..pdf;
5. Saputo HP. "Angara Java Barat News". Antarajawabarat.com. Retrieved March 22, 2015.
6. "Indonesian coffee supply". Indonesian Embassy. Retrieved March 22, 2015.
7. Bennett Alan Weinberg, Bonnie K. Beaker (2001). The world of caffeine. Rout ledge.
pp. Page 3–4.
8. Meyers, Hannah (2005). ""Suave Molecules of Mocha" -- Coffee, Chemistry, and
Civilization". Retrieved March 22, 2015.
9. Marketline (2011) Country analysis report: Japan Indepth PESTLE insights overview.
Available at: Marketline Advantage Database. Retrieved March 22, 2015
10. Economist Intelligent Unit (2012) Japan coffee business. London EIU. Retrieved March
22, 2015