Costa Coffee Internationalization Strategy - Essay Example

These challenges mainly involve economic difficulties. The prime business challenges faced by Costa Coffee as a whole are directly in relation to the economic recession from 2008. This is because the customers have been observed to become more cautious with their discretionary spending due to the high personal debt as well as unemployment. Further, social as well as cultural challenges might also be faced by Costa Coffee. The cafe will have to not only sell Coffee but also maintain the ambiance and surroundings of the cafe. This is because people not only come to drink coffee but also come to calm down and have a relaxed experience. The better the ambiance, the more people will spend on coffee. Another difficulty that Costa coffee might face is the fact that people are much more aware environmentally in the recent era. The source from which the coffee beans are produced as well as the way they design their supply chain as well as prepare and sell their product is of great concern to the French customers.

Furthermore, Costa Coffee is faced with great competition from other leading coffee shops within France. These include firstly star bucks as well as a coffee republic and many others. This competition tends to steal the coffee customers that are vital for the increase of sales for Costa Coffee. Further, Costa Coffee in France would also face problems in association with the intense price competition. Due to the high prices in Costa Coffee, it is seen to target only the upper-middle class and the privileged class. Also, any alteration in the development of information technology resulting in a change in the markets would definitely pose a threat to Costa Coffee in France. The major problems faced by Costa Coffee can be dealt with by focusing on attracting more customers. This can be done by increasing their brand awareness as well as reducing their prices.

Furthermore, the difficulties can be dealt with by setting up a trial of stores as well as the implementation of a plan for a long-term trade. The basic function of interim management is to provide the opportunity in order to shape up the coffee business without causing a distraction for the management team from the current demands and issues of the coffee business. Read More