Opportunities and Challenges for Danes Coffee in the United Kingdom

Running head: GLOBAL MARKETING
Global marketing
Name of the student
Name of the university
Author note

1GLOBAL MARKETING
Executive summary
The aim of this report is to discuss about the opportunities and challenges to be faced by danes
coffee in operating in the United Kingdom. This report identified the key major external trends
that will have impact on the business viability of danes coffee in the country. It is identified that
danes coffee will face the threat of brexit and advantages of the social globalization in the United
Kingdom. On the other hand, the competitive forces are also discussed and high level of intensity
is identified. This report suggested that direct exporting mode of entry should be followed by
danes coffee along with market adaptable approach.

2GLOBAL MARKETING
Table of Contents
Introduction......................................................................................................................................3
Identification of the host country.....................................................................................................3
External factors analysis..................................................................................................................4
Political factors............................................................................................................................4
Economical factors......................................................................................................................5
Social factors...............................................................................................................................6
Technological factors...................................................................................................................7
Legal factors................................................................................................................................7
Environmental factors..................................................................................................................8
Competitive forces in the industry...................................................................................................8
Bargaining power of the buyers...................................................................................................8
Bargaining power of the suppliers...............................................................................................8
Threat of new entrants.................................................................................................................9
Threat of substitute......................................................................................................................9
Competitive rivalry......................................................................................................................9
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3GLOBAL MARKETING
Introduction
The current business state of affairs is posing challenging prospects to the business
entities and coupled with the intensity of globalization, businesses are not bounded by the
geographical distances. The contemporary business entities are operating across the world and
also facing the issues from global perspectives. The current growth strategy of the contemporary
business organizations is also based on the global factors and foreign market operations. Entering
in a foreign market for business is being given the maximum focus currently due to the saturated
market position in the home country. Thus, entering in the foreign markets will expand the
market areas and regions for business along with contributing in generating global identity.
Similarly, danes coffee is also initiating to enter in a new country for expanding their business
globally (Ang, Benischke & Doh, 2015). Currently, danes coffee is having their operations
across Australia and is initiating to tap the European market in expanding their business. They
have considered the United Kingdom for their foreign market operations as it is one of the
leading and developed economies in the region.
This report will discuss about the key external trends that will be faced by danes coffee in
doing business in the United Kingdom. Furthermore, the competitive forces to be faced by them
in the country will also be identified in this report. Based on all the factors identified, the market
entry mode strategy will be recommended for danes coffee that will provide the maximum return
from the host country operations.
Identification of the host country
As discussed in the above section, danes coffee considered the United Kingdom as the
potential host country. It is reported that as of 2017, the annual growth rate of the United
Kingdom stands at 1.8 percent, which should subtle growth of the economy
(theglobaleconomy.com, 2019). In addition, the United Kingdom is the third most populous
country in the European region, which will pose better opportunities for danes coffee. United
Kingdom is also considered as the developed country and thus it can be concluded that market
economical condition will be favorable for danes coffee in doing business in a developed
economy. However, there are few challenges such as brexit will have negative impact on the
business of danes coffee in the United Kingdom. It is thus important for them to analyze and