A market analysis of the Chinese coffee market has been conducted through industry analysis framework. The project also shed light on how Zarraffa’s Coffee should go about the expansion plan in the next five years through the franchisee model.
The twenty-first century is often cited as the age of competition, this century is associated with globalisation, which has resulted in organizations breaching geographical boundaries to gain access to markets across the globe. Competition is the buzzword of globalisation with every product category being offered by numerous organizations resulting in a highly competitive environment. The present study deals with the issue of international expansion by organizations. International expansion can be of many types which include setting up Greenfield projects, Joint ventures, Tie ups and Franchising. The study would try to analyse the international expansion of a firm using the franchisee model. Zarraffa’s Coffee has been chosen as the firm for study, and the Chinese market has been chosen as the nation for the firm’s expansion. The choice of the nation assumes significance as it represents the fastest growing economy of the world whish offers a huge potential for players to expand their business operations. According to a study the Chinese coffee market is still in its growth phase, the report also states that the coffee consumption by the Chinese consumers has grown by approximately 20 percent (Li, 1995, p.6).
Zarraffa’s Coffeein an Australian based coffee shop which was established in the year 1996 by Kenton Campbell. The first store of Zarraffa’s was based in the city of Southport in Australia. The company provides excellent service to its customers which are in accordance with its mission to provide a perfect cup of coffee to every customer (Zaraffa’s Coffee, n.d.). Presently the organization has its presence across 42 stores which are spread around Australia. The company has gone a long