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International Marketing 1Second Cup in South Korea1- Executive Summary:This paper will analyze and examine the South Korean market withdifferent aspects. We will study the opportunity of Second Cup to enter theSouth Korean market. We will discuss in our paper the cultural environment,economic environment, and the political environment.Also, We will beproviding implications strategies to Second Cup depend on the factors weexamined.Looking to the current market status of Second Cup, we found that thecompany has reached the global stage and provide its service in 22 countries.And, the mission of the company is to become leading in the coffee productall across the world. So, that will enhance the company's ability to enter theSouth Korean market. Also, the global experience that Second Cup has wouldfacilitate their entrance into the market.Moreover, We have studied the South Korean cultural and we havefound that there is an opportunity to our products to be sold there. There aresome cultural similarities between the consumer behavior in South Korea andCanada. And, language as a second language would facilitate our mission toadopt the South Korean culture.In South Korea, The GDP per capita is $27,222. And, that reflect howSouth Korea's citizens enjoys a good standard of living. And according to ourresearch, we found that South Korea is considered the high-income economy.Moreover, the advanced technology and transportations in South Korea willassist us to promote our services.The Republic of South Korea enjoys the stability in its politicalenvironment. The government is friendly and welcoming FDI. Also, South
Korea is a member of the WTO and the regimes on FDI are clear the politicsrisks are small. However, We have found an opportunity for Second Cup toreceive proper treatment from the host country South Korea.2-Overview of the firm marketing the product2.1 History:Second Cup is the most famous Coffee company in the Canada. It hasbeen doing this business for thirty-five years. The company was establishedby the Tom Culligan and Frank O'Dea in 1975. The company has been createdin the capital of Canada which is Toronto. Currently, the headquarter of thecompany is in Mississauga, Ontario, Canada. The partnership of both thesefounders did not last long as then, after few year Culligan was able topurchase all the O'Dea shares and become the sole owner of the company. Hegave the rise of the business of the company and established the chain ofstores in the Canada.The company under the ownership of the Culligan progress and reached150-stores, He eventually sold it to the Michael Bregman. Michael Bregmanwas not able to hold the business for long, and after just five years he sold it tothe Khalil Al-Gawad. He took the company to the public as a Chairman of thecompany twice in history. Once in 1933 and then in 2002. It shows the twistand turns in the company ownership of the Second Cup. However, this doesnot end here as then the company was sold to the Cara operations limited.Currently, the company is split into two parts. One is the Canadian part whichis known as the Second Cup limited.The another part is the Second Cup Coffee limited as this one works atinternational level. Therefore, now there are two owners of this company.Stacy Mowbray leads the company which is in Canada and controls the localmarket. While Jim Ragas leads the company to invest internationally and itwas working efficiently good the company. Currently, the CEO 7 President ofthe Second Cup Limited since 2014 is Alix Box. The company is nowprogressing with the constant pace, but they have faced many challenges inthe past which are both economic and organizational challenges.
2.3 Growth:Currently, the company has more than 345 stores all across the countryand at international level. The company is serving in 37 regions and 22countries. There are many international stores of the Second cup like in UK,USA, Egypt and many other nations. The first branch of the company wasopened in August of 1975. The company was working as small stores in theshopping mall of Canada, and the reason to choose Kisok shopping mall wasthat it has more customer attraction than other malls in the city. The Veryfirst-day company was able to sell six blends of coffee beans. Although, it wasthe small start yet impressive for the enterprise.The company within a decade progress rapidly and until the late 1980'scompany was growing. The chain stores were developed all across thecountry, and by 1989, approximately 130 cafes were under the banner ofSecond Cup. Not only this the company open stores in the Shopping malls andOffice Towers to attract the market segment. The company broke into the newmarket in Quebec in 1990's. It was the new and significant step of thebusiness. They started growing rapidly and finally in 2003 company steppedinto the international market. After that group start progressing rapidly allacross the world. There are many challenges this company faced during itsway to the International. (Second Cup, 2016)The biggest problem that this group encounters is the leadership. Thedirection of the business changed over time which causes the negative impacton the company performance. The progress becomes slow when themanagement of the company changed. The second challenge is the terroristattack. When the company open stores in the Montreal the three stores of thecompany were attacked by the terrorist. The reason behind the assault was thename "Second Cup" of the enterprise. After this incident company reputationhad decreased but they were able to gain the market segment again.(Roger,2016)
Competitors like Starbucks also give the tough time to the enterprise.The company tried to explore new market segment. They went in differentcountries where Starbucks is not yet present.2.4 Description of Resources:Second Cup company has started making progress at international levelagain after the economic crisis of 2008. Last year the company lost wasmassive as compared to the loss in 2015. According to the financial statementof the enterprise. In 2014 the net Loss of the company was $27,032,000 but in2015 it is$1,153,000. It shows that company is currently progressing and thecompany assets at the end of 2015 were of $46,485,000. The company is nowgenerating revenue through the stores and the franchises. The core business ofthe company is the Coffee products, and they have competitors in thisbusiness. The major competitor of the company is Starbucks. The marketcapital of the company is $30.28 million. The maker share value of thecompany is $2.36.(Audit, 2016)2.5 Market Position:The current market served by the Second Cup involves the 37 regionsof this world. They have explored new market segments which are nowcovering almost all part of the world. Company futures plan clearly shows thatthey are going to launch ten new international stores to reduce the loss of thecompany and generate more revenue. The company has franchise partners inmore than 11 countries.(Audit, 2016)The major competitors of the company involve the Starbucks & TimHortons. These are two major competitors of the company due to whichcompany is struggling to take control of the international market. While on theother hand company is currently exploring new market segments which arenot yet explored by its competitors.2.6 Missions, Vision, and Goals:
The leadership of the company is motivated, and they have the clearvision in front of them. Now company vision is to become the leadingPremium Café brand. The company business is not just bound to the coffeeproducts beside they have stepped into many other firms. Due to which theywant to become the leading brand of Cafe all across the world. The mission ofthe company is loud and definite as they want to grow continuously at theright pace. Second Cup believes in the innovation, and they have broughtinnovation in the Coffee business. They are now planning to open newinternational stores. For that purpose, they are looking forward to creating anddevelop new ideas. The company is known best for the handpicked coffeebeans this is the specialty of the enterprise.The company went global and now serving worldwide. The franchise ofthe company is also committed to the enterprise policy. They are bound toproduce the high-quality product with excellent service every day. The secondcup does not compromise on the company reputation and customersatisfaction. Due to this reason business reputation is quite good in theinternational market. However, it is not that good like Starbucks due to someother reasons. They are one of the longest coffee retailers in the history, sothey have to protect their precious heritage. To do so, they are working hard toprovide fresh and delicious coffee to thousands of people each day.Second Cup has to maintain their company on the top in theinternational market, and for that, they always required highly skilledworkforce. That is why the focus of the company management is not just onlyon the qualification of the people but also they want to experience and high-level skills. The reason behind is that company is serving in all regions ofworlds, so they have to make sure that every employee they hire can handlethe challenging task that they give to them.2.7 Second Cup Products & Services:This company is famously known for its Coffee Products. The majoritems of the Coffee are listed below which are available at Second Cup stores:
Caramelo, Espresso Forte, French Vanilla, Hazelnut Cream, ParadisoDark, Americano, Café Latte and CappuccinoAbove mentioned are the most popular beverages sold by Second Cupand they are producing many more drinks. However, the Company stores donot only sell the drinks and beverages as they offer the Snack, Pastries, andPre-Packed food items. Company hot and cold sandwiches are also veryfamous among people.(David, 2016)The second cup provides services like Home Delivery and Take Away.To find the Second Cup Café in the city. There is an app developed by thecompany through which the person can quickly locate the Second Cup Café inthe town. This app also allows the customer to choose the product and set theorder for the company. The company gives the home delivery to almost everypart of the city.2.8 Second Cup Coffee Company in South KoreaSecond Cup should open the store in the South Korean market as thiscan increase the productivity of the company. It can help the company togenerate some new flavor of Coffee according to the culture of the SouthKorea. Market segment of the company is until now limited but with theopening of a store in South Korea, the market segments can increase.Diversity factors play a major role in the market development of the company.If the company store in one country is in crisis than the stores in South Koreacan help the company to stand again and recover the losses. Second Cup willhave the greater access to the talented people for their businesses in SouthKorea. They can hire the best people for the store and get the best out of them.South Korea is full of resources this is also the benefit to the company. Thecompany has access to more resources and supplies in the country.The competition in the South Korea is increasing in the coffee businessbut as the brand awareness of Second Cup is already developed. Due to whichit will be easy for the Second Cup to attract the audience in the South Korea.The product quality and creative design can help the company to gain thestrong market position in the South Korea.