Costa Coffee International business strategy
Costa Coffee have mergers with Lex Counsel and Whitbread. Introduction Costa coffee is an international coffee house that has its headquarters in the UK and it is a owned by Whitbread. It is number two coffee house chain house in the world after Starbucks. Costa opened their first international store in Dubai in the year 1999. Within 12 years it had other 79 shops opened in the Emirates. The market of Cost Coffee shop in the UK is likely to expand at high speed since it is without any doubt the most popular brand in the market (Bohman et al. International strategy Costa is now among the largest coffee houses in the world. The core market of Costa is in the UK where there are 1175 outlets Costa shops and it has spread rapidly throughout the world, including west and east.
For instance, by 2012, Costa had opened its 200th coffee store in China. Doing trade across the borders is exciting and has brought fame and profit to Costa. The company has got more than 3000 outlets and the Costa Express outlets are more than 4200 and they are spread across 29 nations globally. The company works with coffee-growing communities throughout the world to get high-quality coffee beans. Whether it is the social platform or digital platform, Costa Coffee has a great presence in the media, a strategy that is assisting the company to create awareness leading to increased sales. It gets involved in CSR activities and has come up with Costa foundation so that it can associate with coffee growing communities all over the world.
Companies that are in this industry have to face the exit and entry barriers to branding and infrastructure costs that are involved in the setup of the company. Most of the coffee shop chains offer products that are similar, for instance, they offer various types of coffee, snacks, foods, and so on. However, it will be wise for Costa to offer widespread products of coffee to attract more customers (Bohman 399). International operations and management structure The track record of the Costa Coffee has made it get to position two in the rank of the largest coffee chains in the world. However, it is a strategy that Costa Coffee hopes will assist it to get to its set of goals for its growth in a country that has a culture of tea-drinking.
Costa Coffee has talked of plans to get its stores in China to about 900 stores by the year 2020 which will be triple the current stores. Starbucks Coffee Company which is a United State Company is the closest competitor to Costa in the country with 27 percent of the market (Sick, 275). The success of Costa is as a result of a trend changing the manner a country that has people who love tea has gotten to like coffee drinking but people in Britain do not drink more coffee and the levels of consumption nowadays are lesser than they were in the year 2006. The consumption of coffee in Britain is about 2. 8 kg for every person and this is a fraction of Sweden which is about 7.
1 kg, Germany at about 6. Joint venture with Whitbread Costa coffee has recently signed a joint venture with Whitbread Company. The firm is a Public Limited Company and a British owned multinational hotel, a restaurant company and a coffee shop. The Whitbread company has its origins in the brewing industry. The Premier Inn which happens to be the Whitbread company’s largest divisional hotel brand is also located in the United Kingdom owning more than 65,000 rooms and slightly over 750 hotels. On the other hand, Costa Coffee chain cuts across closely to 31 world countries being in possession of over 3, 401 coffee shops, making it an international coffee shop chain, emerging to be the second largest coffee shop chain in the world. The Rainforest Alliance believes in instilling small actions to propagate big changes.
It articulates that every day, everyone can help in the prevention of deforestation, can help to curb climate change, help in wildlife protection, help in poverty alleviation and thus be able to transform their business practices. ii. Marketing Alliance A campaign was launched in Bahrain, Saudi Arabia, and Oman to officially sign up a joint marketing alliance between Gulf Air Company and Costa Coffee Company. The Gulf Air Company through joint branding with Costa Coffee Company has been successful in stepping up its efforts on marketing through the joint branding and the joint initiative. This enables the Company to work hand in hand with Investment banks, multinational law firms, and financial advisory firms in conducting their due diligence to close the Company's transactions.
Costa Coffee Company merges with Lex Counsel Company in advising Costa Rica's largest coffee group in their multi-million dollar sales of nearly100% interest. It also advises the Costa Coffee group in their multi-billion dollar sale of its operations when it comes to transactions with any foreign company. ii. Costa Coffee and Whitbread: According to the economics and policy from China's journals, magazines, and newspapers, Whitbread Brewing Company has taken a full control of a joint merging with Costa Coffee firm. ii. Costa Coffee and Robertson Brews The Robertson Brews and Costa Cofee have stroked deal and thus have signed a joint agreement on an acquisition that will set right the conditions right for the acquisition processes. The Robertson Brews' facility management has recently been able to win a contract worth multi-million dollars to deliver fabrics on building, electrical maintenance and plumbing management.
The contract was awarded by Costa Coffee Company to the Robertson Facilities Management. This arrived after a review was extensively done on the Costa Co Company's repair and maintenance supply chain, which then approved the acquisition contract. (Adam et al. The growing popularity of the culture of drinking coffee is promoting growth in the coffee industry. As disposable income gets more, consumers will like to buy a more premium product. The handcrafted coffee of Costa makes it be apart from the competition. The quality of coffee, the environment, and the services Costa provides helps the company maintain its customers. E. Ghaly. "Determining barriers to sustainability within the Costa Rican coffee industry. " Sustainable Development 15. Alvarado, Irene, and Kiupssy Charmel. "How to save tropical biodiversity: the National Biodiversity Institute of Costa Rica.
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