Lavazza Business Threats: Competition, Climate, and Regulations

This report identifies and analyzes the key threats facing Lavazza in the global coffee market. It highlights changing customer tastes and preferences influenced by cultural backgrounds and generational differences, emphasizing the need for continuous innovation to maintain customer loyalty. The report also addresses the intense competition from established players like Starbucks and Nescafe, the impact of climate change on coffee quality, and the challenges posed by new market entrants with innovative technologies. Furthermore, it discusses the complexities of navigating varying rules and regulations across different countries, which can lead to penalties for non-compliance. This comprehensive analysis provides insights into the multifaceted challenges Lavazza faces in sustaining its market position and profitability.

Lavazza

Threats - Lavazza
 Changing Customer Taste
The company deliver the products around the world due to which it face
the issue of different taste and demand of customer. The demand of
the customer is different as per the culture and background. It becomes
a threat for the company to satisfy the needs and requirement of each
type of consumer.
Generation gap is another factor which increases the difference
between the demand and satisfaction of consumer. As per passage of
time, the demand of the consumer is also getting change. The company
has to innovate the new product in order to attract the customers. Lack
of innovation increases the chances of loosing customer which becomes
a threat for the company (David, and David, 2016).

Threats -
Lavazza
Competition
Competition is a threat for the
every company. There are
many competitors in the
market which beat the
company in the terms of
quality, brand image and the
many others. Starbucks,
Nescafe and the others are
the competitors for the
company which use the
different strategies to attract
the customer in order to gain
the high market share.

Threats -
Lavazza
Climate Change
Cliimate is an another threat
for the company due to
changing the climate the
quality of coffee is also
change. Poor quality is a
biggest threat for the
company because it
decreases the customer
loyalty towards the company
(The sydney Morning Herald,
2017)

Threats - Lavazza
 New companies
The entrants of new companies also a threat for the company. The new
companies enter the market with the different technologies which
attract the customer towards their services. The chance of loosing the
customer is increases for the company(Bull, et. all, 2016)
 Rules and Regulation
It has been seen that the different country have their different rules and
regulation which is necessary to follow by the company. Penalties and
punishment is given by the government due to not to follow the rules
and policies of the government. The company face the many challenges
due to rules and regulation of the different country.

References
 David, F.R. and David, F.R. (2016) Strategic management: A
competitive advantage approach, concepts and cases. Pearson.
 Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N.,
Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and
Carter-Silk, E. (2016)Strengths, Weaknesses, Opportunities and
Threats: A SWOT analysis of the ecosystem services framework.
Ecosystem services, 17, pp.99-111.
 The sydney Morning Herald. (2017) Hedging his bets, Lavazza coffee
king shows it's easy being green. [online] Available
from:https://www.smh.com.au/business/companies/lavazza-coffee-king-
shows-its-easy-being-green-20170203-gu4n5k.html [Accessed
21/2/19].