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Ewelina Sotysiak
Piotr Bartenbach
Bartomiej Staszczyk
SWOT Analysis
Strenghts:
Opportunities:
Weaknesses:
Threats:
demographic changes
a competitor may have a new, innovative product or service
competitors may have superior access to channels of distribution
taxation is introduced on your product or service
new regulations
changing customer taste
PEST Analysis
Lavazza, a company which was founded 115 years ago has come to
a state in which it can conquer all. The results of the PEST analysis are as
follows:
Political factors:
Lavazza is a company based in Italy; therefore it does not have to
worry about distribution in the EU since it does not call for tariffs among its
members. Overall it can be said that the company is in a stable political
environment, the only reason for the cooperation of countries being in
danger would most likely be war or in some cases, imposed taxes or fees
for the distribution of the product in foreign countries. One of the positive
factors which influence internationalization of Lavazzas products is the
simplification of procedures and documentations in international trade.
Economic factors:
Some of the economic factors which should be taken into
consideration are: the transport costs are falling, therefore, Lavazza can
expand. The company ships its products overseas; mostly to retail coffee
shops which bring most profit into the organization.
Socio-cultural factors:
Lavazza is a company which is known all over the world. It produces
not only coffee, but a wide range of products such as tea, coffee machines,
calendars, desserts, mugs, paper cups, clocks, ashtrays, and umbrellas.
Lavazza promotes the fact that you can drink its products at home, in the
workplace; at coffee shops and so on therefore it is attractive to customers
from different backgrounds. The company also started a project Tierra!
which may appeal to many of the customers and could influence their
choice of coffee. Especially since most consumers taste the brand in local
coffee shops and are used to the taste.
Technological factors:
Improvement in distribution plays a significant role in the
internationalization of Lavazza. New technology which cleans coffee beans
and tea leaves makes Lavazza produce faster and higher quality products
therefore it satisfies deadlines and always has high demand for the
product.
BCG MATRIX
STARS
coffees
teas
desserts
QUESTION MARKS
CASH COWS
calendars
coffee machines
paper cups
mugs, cups
DOGS
umbrellas
Ansoff Matrix
Market Penetration
Current Markets
Current Products
New
Market Development
Current Products
Markets
Ansoff Matrix
continuation
Current Markets
Product Development
New Products
New Markets
Diversification
New Products
Buyer Power
Coffee is in top likely bought drinks all over the world and its been
developed for several centuries so the market is full of big coffee
corporations and small businesses. Furthermore, switching costs are quite
small there are various sellers and potential customer has a broad
market to chose from. Problem occurs, when company has a contract with
big corporation, they posses e.g. Lavazzas machinery and they want to
switch to a cheaper company. Coffee machines do not have standardized
types of the refills and only by buying original parts we are able to use
their product.
Supplier Power
Lavazza has a credible forward integration threat by suppliers because
they are supporting some of the coffees plantation in exchange of coffee
quality improvement and coffee. Relationship between companies
exporting coffee beans and their customers, which is likely firm serving
final customer with ready product e.g blend coffee are rather tight and
supplier switch is pricey and hard to achieve. As mentioned before,
Lavazza has a program called TIERRA! which main task is to improve
quality of the coffee beans by patronage. That kind of behavior is another
example of keeping close business connections.
Sources:
http://www.lavazza.com/corporate/en/
http://www.italtrade.com/spotlight/lavazza.htm
http://www.lavazza.com/export/sites/www.lavazza.com/en/pressarea/press_kit.pdf
http://www.lavazza.com.au/