China Specialty Coffee Industry

Pages 16 (4016 words)
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This report looks 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. In terms of internal analysis: barriers to entry and exit are moderate; rivalry is weakened by market under saturation and differentiation strategies; threat of substitutes is moderated by the different value added features attributed by companies to their products; supplier power is low; and buyer leverage is very high.


However, this can be further enhanced by the employment of strategies which recognizes the different profiles of customers in each key cities and emphasizing on the promotion of health benefits from coffee products.
The existence and mere survival of an industry lies in its ability to efficiently 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 competences.
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. ...
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