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China Specialty Coffee Industry - Assignment Example

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The researcher of this essay will make an earnest attempt to look at the internal and external influences of the China specialty coffee industry through the employment of strategic management tools such as the Porter’s Five Forces Model and PEST Analysis…
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China Specialty Coffee Industry
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China Specialty Coffee Industry

It is evidently clear from the discussion that the existence and mere survival of an industry lie in its ability to effectively respond to the internal and external influences. It is irrefutable that business organizations' strategies mirror their unique responses to the external challenges and opportunities in the environment which, in turn, is facilitated by their internal resources and competencies. This paper will concentrate on the responses of the China specialty coffee industry to the various internal and external influences that it currently faces. Recognizing that this sector can be properly examined through the use of different strategic management tools, this report will be utilizing famous technique PEST Analysis for the external environment scanning. Meanwhile, the internal environment will be assessed through the identification of its various stakeholders through the Porter's Five Forces Model. The next section will focus on the Chinese specialty coffee market responses in the face of social and cultural diversity. This report will thoroughly examine the impact of the social and cultural trends in the industry's strategies while assessing the efficacy if their responses. Lastly, recommendations for improvement will be identified. Gaining the traditional recognition of being a tea country, marketers are aggressively and strategically transforming China into a coffee drinking nation. From its strong preference of" jasmine, oolong, green, black, and myriads of other fragrant teas the Chinese mainland is becoming more and more attuned to the rich flavor of the coffee bean, driven by the urban savvy rich and an increasingly wealthy middle class more receptive to Western taste". The current perception of coffee as a statement of fashion leads to the creation of the China coffee industry. Coffee consumption has always been associated with a cosmopolitan lifestyle which originated from the Western nations. Thus, the Chinese coffee market is largely concentrated in large cities like Beijing, Shanghai, and Guangzhou and is dominated by adventurous, young, open-minded, affluent, urban consumers. ... Read More
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