Strategic Management Analysis of Revelator Coffee for Expansion in Australian Market

Strategic Management

STRATEGIC MANAGEMENT 1
Introduction
In this report, Revelator Coffee has been taken into consideration to analyse the environment
in order to adopt the effective strategies for the expansion of the business. Revelator Coffee is
an American roasting company which operates in US (Revelator coffee, 2019). Now, it wants
to distribute its coffee drinks in Australian Market with the aim of expansion of coffee
business. Different business tools are used to analyse the environment such as PESTLE,
Porters Five Forces Framework. Resources and Core capabilities of the product will also be
analysed.
Macro environmental Analysis
PESTLE Analysis
Political
 Revelator Coffee operates in US
within the limited areas. While
expansion, political factors affect the
growth of the product such as trade
relationship. For example- it is
difficult to enter the American market
as per the high sentiments. But it is
easy to enter the Australian market as
per flexible rules and regulation.
Economic
 Australia is a mixed economy with a
GDP of $1.69 trillion. The purchasing
power of consumx`er is high due to
which the demand of coffee drinks is
high (Australian Government, 2018).
 Price of product is affected on the
basis of inflation rate and different
income levels. The company invest
the large amount in promoting the
product to satisfy the consumer.
Social
 Australia is the places of diverse
Technology
 Australian is known company for

STRATEGIC MANAGEMENT 2
people due to which the taste and
demand of consumer is differ as per
their background.
 Australia people follow the western
culture that is why; they would like to
spend more time in café’s.
adopting the advance new technology
at the fast rate.
 Coffee companies of Australia also
adopt the advance technology in order
to promote the product through social
media.
Legal
 Australian Government have their
own rules and regulation regarding
related to supply of coffee such as
health and safety laws, consumer
protection.
 It is required for the company to open
the store with the government license.
Environmental
 Australian Government develops the
environment polices in order to
protect the environment.
 Australia has many deserts while
most of areas are polluted. The
changing weather of Australia affects
the supply of coffee (Tang, 2018).
Porters Five Forces Framework
Threat of new entrants
 Moderate degree of threat
 Low cost
 Require to invest the high cost in
order to develop the brand image
Bargaining power of suppliers
 Low degree
 Easily available ingredients
 Low switching cost
Bargaining power of consumers The threat of substitute