Marketing Coffee Production in Vietnam Question Answer 2022

Running Head: MARKETING
MARKETING
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MARKETING 2
QUESTION 1
If SICA was to expand globally, it would consider expanding its business in Vietnam.
The country is well known for the production of coffee. The coffee trees planted in Vietnam are
primarily Robusta and Arabica which are used by SICA.SICA would be privileged to expand to
that country to take advantage of the cheap raw materials. The south of Vietnam is humid and
highly suitable for growing Robusta whereas the northern part of the country is suitable for
planting Robusta. SICA would engage the government and erect a plant in the country. Vietnam
has large plantations meaning the volume of Robusta and Arabica are produced in large volumes
too (Jácome & Garrido, 2017).
Vietnam could be a better place of expanding the business since in the recent past; the
country has been noted to have a robust manufacture volume of the coffee bean through bumpy
and deep dispensation. The intended rough dispensation produces a aptitude of 1.5 million tons a
year and this would serve SICA well. The country has a vast population that consumes coffee.
Research shows that coffee is a favorite drink for the Vietnamese. The planting areas also expand
continuously in Vietnam. The level of output has grown accordingly and this leads to the
promotion of processing of coffee, sales, and export for the coffee beans.
If SICA enters the market, it will take advantage of the increasing capacity of raw
products produced in the country. Coffee in Vietnam has coffee processing devices and equipped
labor that makes Vietnam a bold domestic producer in both domestic and foreign markets. The
entry of SICA into the market will make the firm take advantage of the improved technology in
coffee production and hence increase its profit margins. Setting a production firm in Vietnam
will also ensure that SIC does not incur extra costs in transporting the raw materials to Ecuador
(Salaza, Ramos-Martín, & Lomas, 2018).

MARKETING 3
The firm has foreseeable profitability if it enters the Vietnamese market. The latter is done
basing the comparison with the correlation with the existing coffee industries in Vietnam. Due to
the trade agreements Vietnam made, there will be no strict barriers to entry and strength of
customer relations and the levels of industry competition. Through expanding its market to
Vietnam, SICA will also take advantage of the domestic market and increase its sales.
SICA can maintain and enhance the competitive advantage in the coffee market,
expansion of the sales network, attracting and efficiently utilizing the factors of production to
obtain enhanced economic growth gains and ensure a sustainable supply of coffee. The firm
associates with the advantages of the products and the firm’s production efficiency (Carvalho,
Carvalho, & Souza, 2019). There are favorable institutional policies enacted by the government
of Vietnam and also good infrastructure and inner elements inside itself such as the increased
level of technology and the availability of cheap labor among others.
QUESTION 2
In Peru, the commercial environs require American firms to have a nicely premeditated
market entry strategy.
Make your scheme frugally fruitful
The productivity of your development or the sale of your products in Peru is supposed to
be based on a sound monetary basis. It is advisable not to rely on government incentives, special
contemplations or non-market resource incomes from Peru. It is good to ensure that your plan
accomplishes viability in the short term and that it can be sustainable in the longer term. The
market should do thorough research on competing firms (Del Brutto, Mera, & Zambrano, 2014)

MARKETING 4
Carry Out Risk Analysis
A firm needs to be realistic about the risks that it is willing and capable of accepting in its
venture. The business should make sure that it uses reliable sources for the assessment.it should
utilize media sources or its instantaneous associates to evaluate the market. The business should
not have a corporate risk analysis policy for Peru which is different than the one that it would
have in the case of other countries (Jacques, Denancé, Legendre, Morel, Briand, & Mississipi,
2016).
Familiarize With Partner
A firm should carry out due diligence well.it should ensure that its probable archetypal
has the power to make a sound decision. It should also institute rules before it begins its
negotiations. It is also important to ensure that your partner is capable of and enthusiastic to do
what they promise to do in the contract.in a case where the scheme is not a win-win proposition,
it would be difficult to enforce your agreement regardless of the legal rights.in case the business
needs to go to court to enforce the contract, it will be already late. Is it to their greatest advantage
to help you to ensure your image and additionally other licensed innovation rights? Be cautious
that your accomplice is permitted by law to satisfy the guarantees in the agreement. Check the
unwavering quality of the information on your accomplice or client from free sources (Avelino,
Cristancho, & Georgiou, 2015). Abstain from being "stovepiped" - talking just to those
individuals to whom your accomplice or purchaser guides you. You can lose a great deal of cash
on the off chance that you are spoken to with an inappropriate accomplice.