France

France: Attractiveness for Entering Coffee Market

France: Attractiveness for Entering Coffee Market

Introduction

There are many business opportunities available in the French market. For the sole purpose of this report, we will look into the coffee market in France. There are many different factors which should be looked into when starting a business in an international market. The two most significant factors are: the political atmosphere of the country and the international cooperation strategy the country has (International Trade Centre 2011, p. 33-34).

As an Australian company entering the French market, it is very necessary to look at the different barriers in terms of politics and the trade policy is very important. Throughout the report, there are various factors mentioned and discussed. The factors and elements mentioned are all subjective to change at any point in time. This is very important to keep in mind.

In terms of the climate for business in France, it is very warm (European Commission 2013, p. 1-19). Over time, the country has managed to make it much easier for foreign companies to set up shop. The government has now made different departments which deal with different types of companies. The level of assistance and the rate of response and feedback of the government have increased immensely. (International Trade Centre 2011, p. 42)

Another important factor in terms of the company entering the business sector of France is the growth area in the service sector of the country. The consumer base for coffee in France is growing rapidly. It is one of the fastest growing sectors out of all the European countries. The coffee drinking customer base has grown rapidly and is still rising in numbers. This is a promising note when it comes to setting up a coffee business in France. (CBI 2008, p. 34-37)

The best move for the company would be to move into the country as soon as possible. As time goes by, the trade barriers might be increased. The market is in the right place for the Australian company to move into.

DiscussionPolitical environment

Through the years, it has been seen that France is a fairly stable country in terms of politics. There have been many ups and downs recently. However, the country has not let such things interfere with the economic system of the country. The political environment consists of a lot of different factors. (European Commission 2013, p. 2-5)

Taking each factor one by one, we will evaluate the political atmosphere of France. This will help determine the feasibility of entering the French market (FairTrade Foundation 2012, p. 6-11). The following are essential components in the political environment of a country:

Government stability

Socioeconomic conditions

Investment profile

Law and order

Religious tensions

We will look into each element separately in terms of an Australian coffee house

branching out in the French market.

Government Stability

The parliamentary style of government. Though its policies are not as comprehensible to other countries, it seems to be doing well (Giovannucci and Koekoek

2003, p. 100-107). There is a consistency in the policies of the government, even ...