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Internationalization of Costa Coffee in China

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Internationalization of the Costa Coffee in China

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Internationalization of the Costa Coffee in China
Internationalization is a modern business trend that enterprises are using to enlarge their markets and therefore increase profits. It involves expanding the enterprises’ activities in foreign countries after a thorough market analysis. A company has to consider a number of factors before investing internationally. Barriers to trade have in the recent past decreased with many countries getting involved in economic integrations. Costa coffee is a UK company that has now expanded its activities in many foreign countries; China is one of the countries where it has been doing very well (Liberman 2013)
Costa coffee moved to China in 2006 and since that time it has been doing very well, its aim is to make China the second biggest market of its coffee by ensuring that it takes a third of the total production. This may be achieved because since then there are already more than 250 stores of Costa coffee. The determinants of internationalization include the availability of a market, nature of competition, availability of willing local partners to do business with; local conditions such as the locals culture and beliefs (Clarence-Smith 2003)
Availability of market for a particular product is mainly influenced by the population of a country, China is known for its high population and therefore a promising market for most of the international companies, market is a guarantee to any company that invests here. Competition is a function of the number of the similar producers of the same product. Coffee companies from both Britain and the United states has vastly invested in China, however the company’s ability to differentiate its products from those of others is the

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