International Business: CafePod Coffee Co. Expansion into South Korea

International business

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Company overview..................................................................................................................................3
Reason for going international................................................................................................................4
New country and the reason behind the decision...................................................................................5
Barriers that will be faced by the organization........................................................................................7
Implementation approaches for the internationalization for the specific target market........................8
CONCLUSION.............................................................................................................................................10

INTRODUCTION
International business refers to the process of an organization establishing its business
operations in the internal market with the objective to expand its market share and increases its
overall business profitability. It involves establishing structured business operations in the
international market and operating in a new region along with understanding the international
environment and the essential source that will be required to keep the operations effective and
profitable in the new international market. Moreover, it consists of the skills that will be required
for the international operations and the products as well as service to be optimal through
elements such as banking, finance and insurance. There are various challenges faced by an
organization when it plans on establishing its business in the international markets and theses
challenges can be related to both the internal as well as external environmental elements of the
business.. These challenges can causes hindrance in the successful establishment of an
organization within the international market. For the following report CafePod Coffee Co. has
been chosen and is a natural independent craft coffee business established in the year 2011. The
company focuses upon delivering quality coffee for adventures coffee drinkers to enjoy at home.
The following report will consist of the overall overview of the chosen organization to better
understand its history of establishment and current business operations along with the reasons
behind the international process and the major challenges encountered by the company in its
international process. In addition to report will focus on the international market of Korea for the
company of CafePod Coffee Co, to expand its market for growth of business. Furthermore, the
report will involve effective explanation of internationalization process and its utilization for
specific target market as well as assistance in analyzing the major challenges for growth in the
local and international market.
MAIN BODY
Company overview
CafePod Coffee Co. was founded by entrepreneur Peter Grainger and Brent Hadfield,
who wanted to bring happiness to people’s every day, lived and help them thrive in the hustle,
the bustle and the daily grind. The journey began when Peter was traveling around south
America after quitting his job during the middle of the financial crisis and stumbled across a
coffee plantation and an independent shop making Nespresso compatible capsules using exciting
and unusual coffees. Peter could see that retail coffee in UK supermarkets lacked the exciting
and energy of high street coffee shops and set about designing a range of exciting and strong
coffee bleeds for coffee enthusiasts to enjoy at home. The products of the company are available
at all major supermarkets and online retailers with a range of a Nespresso compatible aluminum
pods, roast whole beans and ground coffee. The company has over 15 highly skilled employees
and a net worth of 1.4 million and acquired Big Cup Little in the year 2014 in order to expand
their business.

Reason for going international
Through effective analysis of the values and background of the company it is crucial to
keep their employee motivated and focused on trying to expand their business into the
international market. This is initiated when the organization analyses the different strategies and
applied major source and approved with various reasons for expanding the market into the
international market (Sadeghi and Biancone, 2018).
. Following are the major reasons for CafePod Coffee Co. to enter the international market:
Cost saving: The company can gain the advantage of saving cost if it expands into the
international market of Korea as the country will allow the business to gain highly skilled
employees at lower cost along with the distribution and logistics in the region being inexpensive.
This expansion will allow the company to save major cost in their business operations. The
company can uses the saved up financial resources in developing new products in the region
through effective understanding of the customers demand in the particular market (Clark and et.
al., 2017).
Increase market awareness: The expansion will allow to the business of CafePod Coffee Co. to
develop and enhance its overall market share as well as it awareness. The international market of
Korea will allow the company to increase its awareness in the particular region and gain
validation in the international market as well. This allows the company to gain the opportunity to
collaborate with other organizations as well have a opportunity to expand into other international
market as well.
Diversification: The international expansion will enable the company to diversify its products
and services in order to meet the needs and desires of customers in the particular international
market. Moreover, this will allow the company to have effective research and development for
its current portfolio of products. In addition to this, the expansion will allow the company to
bring more variant within its coffee products which can also gain popularity in the UK market
(Rubery and Grimshaw, 2020).
Foreign investment: The expansion can allow the company to gain the opportunity to attract
new foreign investments. This is crucially when entering international market as it provides
support to the financial resources of the organization. This enables the company to gain