International Marketing

International Marketing

International Marketing

Introduction

Severin is a coffee machine manufacturing company. The company has a range of grinders and dishwashers. The company have developed a solution that, for an investment of a few thousand Euros, ensures energy savings and environmental remarkable coffee making. Although foreign market might seems to be attractive for the companies, however it is not an easy task to enter these markets and achieve goals of maximizing profits and reducing costs. With emerging international market and increase in demand for coffee overseas, therefore companies are influenced to operate in international markets to gain the advantage of increased revenues. Severin has planned to start the business in market of United Kingdom (Fully Automatic Coffee Machine, http://www.severin.com/).

Discussion

The culture of UK promotes drinking coffee due to the weather conditions of the state that promotes extensive consumption for coffee. The consumption rate of coffee is twice as much as in any other Western states. Before entering international market it is essential for the companies to conduct thorough environmental analysis to get an awareness of the market conditions that the company will operate in. and hence it is significant for Severin to have complete knowledge about the UK market before introducing its one touch bean-to-cup coffee machine in the market. PESTEL analysis is a significant tool for conducting in-depth analysis of the UK economy (Perc up your profits, 2011, pp. 30-34).

Political Analysis

Government has imposed higher taxes on coffee shop in those countries producing coffee beans. This usually brings in knowledge that Severin will have to pay higher taxes for the coffee they will require to purchase. Any fluctuating levels of taxes in this industry are certainly trickled down to the consumers (FFI launches coffee into UK foodservice market, 2005, p. 39).

The issues of Trade will have an impact on the business of Severin, mainly when the company will import of export the goods. When another state's government enforces a tariff it just not brings in loss of efficacy for the company however, the transfer of large income may turn out to be inconsistent with equity. This additional variation may become a rip-off. In addition to it, since 9/11 attack, the relations of trade have been negatively impacted between United States of America and few other states (UK leads Europe as market for branded coffee, 2006, p. 13).

Severin is required to investigate thoroughly the political stability of the United Kingdom that they plan to expand the business in. The variations in governmental policies may result in changes in legislations and taxation. The elections may affect the business of Severin, since new legislation or new or existing government may increase taxes and change the policies for international business. Moreover, those states that are in political turmoil or civil war should be penetrated with high degree of caution when the company will consider new ventures (Harris & Brewster, 1999, pp. 488-500).

The international economy should be considered by the management of Severin, since; it will have a great impact on the business and sales of ...