Illu

In: Business and Management

Submitted By thatgirl0007
Words 318
Pages 2
SWOT Analysis: The following SWOT analysis will look at the strength, weaknesses, opportunities, and threats facing Illy’s expansion into all possible countries. This SWOT will help in the consideration for all seven countries and, with the use of Porter’s 5 forces, evaluate which country is best for the expansion of Illy Espressamente. When looking at each country we considered threat of new entrants, determinants of supplier power, rivalry among existing firms, determinants of buyer power and threat of substitute products.

Strengths
Importance of coffee quality
Brazil: Increasing demand for higher quality coffee. (Alon & Lohwasser, 2012, p. 4)
US: High demand for premium quality coffee. (Alon & Lohwasser, 2012, p. 9)
UK: Supports a variety of qualities. (Alon & Lohwasser, 2012, p. 8)
India: Historically not very interested in coffee and tastes are slowly increasing. Therefore, high quality is not as important. (Alon & Lohwasser, 2012, p. 6)
China: Boosted demand for higher quality. (Alon & Lohwasser, 2012, p. 5)
Japan: Less emphasis on quality, more emphasis on convenience. (Alon & Lohwasser, 2012, p. 7)
Germany: Want fresh specialty coffees and high quality. (Alon & Lohwasser, 2012, p. 6)

Importance of atmosphere/culture (ex: decor, interior, etc.)
Brazil: Comfortable atmosphere to enjoy a cup of coffee and socialize with friends or even strangers. Not too much emphasis on particular decor inside the shop.
US: Relaxing vibe, music, comfortable seating for extended stays, etc attracts business people and students, among others.
UK: Comfortable atmosphere for socializing,
India: Increased exposure to international trends and lifestyles push coffee culture towards a more western style, much like the US. (Alon & Lohwasser, 2012, p. 8)
China: Sit down atmosphere for food, fashion-conscious customers, urban customers, precedence on music and…...

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