Coffee Delight
The main argument towards investing into the UK is that the business is already established in terms of finance as well as the public image and brand. This is supported by the data shown in the case study, mainly that coffee delight managed to earn more profit despite cutting down the budget by 10%. One of the main consequences of decreasing the budget is that the quality of products and service will decline. This may have happened but the fact that coffee delight was able to increase its profits strongly suggests that their public image or brand was very strong and established something that wouldn’t have in Romania.
There are a few problems associated with establishing the business a good brand image in Romania. One of the main problems is the people, culture and market trends in Romania will be different to those of the UK. Also, the majority of the Romania population doesn’t speak English so communication will be difficult. So if Coffee Delight is to make it into the Romanian market, they will first need to acquire a lot more knowledge about the market and culture in Romania. The data given in the case study is very limited. However it’s not all bad news, since no other competitors have yet entered into the new market Coffee Delight would have the first mover advantage. They have the chance to set the standards of quality as well as the cost of their service. They can perhaps further decrease their operating costs without worrying about competition. Coffee Delight has been able to do this in the UK whilst surrounded by completion so lowering costs in Romania is likely to be very easy to do. This would be a good point towards their objective of “keeping costs down”.
Romania is currently experiencing and economic growth. The data shows that the income per head has been increasing in the recent years so if Coffee Delight is to enter the Romanian market, now is a better time than ever. Being at the start of this economic growth will almost guarantee a good level
There are a few problems associated with establishing the business a good brand image in Romania. One of the main problems is the people, culture and market trends in Romania will be different to those of the UK. Also, the majority of the Romania population doesn’t speak English so communication will be difficult. So if Coffee Delight is to make it into the Romanian market, they will first need to acquire a lot more knowledge about the market and culture in Romania. The data given in the case study is very limited. However it’s not all bad news, since no other competitors have yet entered into the new market Coffee Delight would have the first mover advantage. They have the chance to set the standards of quality as well as the cost of their service. They can perhaps further decrease their operating costs without worrying about competition. Coffee Delight has been able to do this in the UK whilst surrounded by completion so lowering costs in Romania is likely to be very easy to do. This would be a good point towards their objective of “keeping costs down”.
Romania is currently experiencing and economic growth. The data shows that the income per head has been increasing in the recent years so if Coffee Delight is to enter the Romanian market, now is a better time than ever. Being at the start of this economic growth will almost guarantee a good level