Caso ILLY.

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Based on these analysis, Espressamente should go for the United Kingdom. Why? Because altough it is an historically tea consumer, the acceptance for coffee is high, the coffee industry is growing stronger, there are few restrictions to franchising, the government helps you to invest and locate and because of this, the UK is a country where is easy to do business. Also there is not a lot of cultural difference and the location is not far from Rome, this makes a faster travel.

Conduct analysis using the GE Matrix and the BCG. What dou you learn from them?

GE MATRIX

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BCG MATRIX

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I am still going fo the united kingdom because altough it is a low attractive market, it has high competitive strength, high market grow and high market share.The US is the most attractive market to enter but it is also a very saturated and this makes a low market share.

Which variables from the case are the most important in Reale’s decisión-making?

I think that the most important are the market grow, and he market attractiveness, but the most important would be the culture acceptance. Also the “easy doing business” variable.

How should Reale prioritize markets?

From up to down:

- Market grow

- Culture acceptance

- Market share

- Distance and travel time

- Industry attractiveness

What mode of entry should Real consider? Should it be different based on the market selected? What are the relevant environmental and organizational variables that should impact the decisión?

I think the mode of entry to the UK can be by franchising; the country has a good acceptance on them and the government gives you a lot of facilities, the industry is growing in the country and the most important variables for the organization: there’s a cultural acceptance and similarity and the travel time would be shorter tan any other country (same as Germany).