Potentiality of Danes Coffee in Doing Business in China

Running head: GLOBAL MARKETING
Global marketing
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1GLOBAL MARKETING
Executive summary
The aim of this report is to discuss about the potentiality of Danes in doing business in China. In
this report, the challenges and opportunities that to be faced by Danes in doing business in China
are being identified and analyzed. It is identified that by operating in China, Danes will gain
huge market opportunities by means of market size. On the other hand, they are about to face
strict and unfavorable political environment in China. In addition, this report also discussed
about the potential industrial competitiveness in China and it is identified that they will face
higher level of competitiveness. Based on the identified factors, this report recommended a few
steps and strategies that can help Danes in gaining the long term sustainability in China.

2GLOBAL MARKETING
Table of Contents
1. Introduction..................................................................................................................................3
2. Identification of the host country.................................................................................................3
3. Determination of the external environment.................................................................................4
3.1 Political environment.............................................................................................................4
3.2 Economical factors................................................................................................................5
3.3 Social factors.........................................................................................................................7
3.4 Technological factors.............................................................................................................7
3.5 Environmental factors............................................................................................................8
3.6 Legal factors..........................................................................................................................8
4. Determination of the industrial competitiveness.........................................................................9
5. Recommendations......................................................................................................................10
6. Conclusion.................................................................................................................................11
7. Reference...................................................................................................................................13

3GLOBAL MARKETING
1. Introduction
In the current business scenario, it is not enough for the contemporary business
organizations to operate within the national boundary. This is due to the reason that increase in
the competition is posing challenges for the business organizations and reducing their viability in
operating within the domestic circuit. In this case, business firms are opting for foreign market
operations in order to increase their market size and business revenue (Coeurderoy & Murray,
2014). Moreover, the recent surge in the globalization is also contributing in pushing the concept
of foreign market operations for the business firms. However, on the other hand, there are
number of factors should also be considered by the investing firms in selecting the host country
for operation. These factors will be influencing in the long term viability of business operation in
the host country.
Danes Coffee is one of leading boutique coffee manufacturers and brands in the
Australian region. They are founded in 1994 by Paul Jackson in changing the way, coffee was
tasted. Currently, they are having their operations across the country and offering good varieties
of coffee both as wholesale and retailers. However, they are already well established in the
Australian market and should now look out for new foreign locations in order to increase their
presence. This will also help them to global identity, which will act as their competitive
advantages in the long term (Clark, Li & Shepherd, 2018).
This report will discuss about the potentiality of Danes Coffee in doing business in the
foreign country. In addition, a potential foreign country will be selected for Danes Coffee as their
host country and key external factors will also be discussed using the PESTEL framework.
Porter five forces analysis will also be done to identify the competitive forces to be faced by
Danes Coffee in operating in the host country. Based on the factors to be identified, a few
recommended steps will be discussed.
2. Identification of the host country
It is recommended that China will be the most potential country for Danes Coffee for
their foreign business operations. This is due to the reason that China is the largest country in the
world in terms of population, which poses huge opportunities for Danes Coffee. In addition, the
cost of operation and manufacturing will also be low in China (Chow, 2017). This is due to the