Market Potential for Starbucks in Belarus

303 words | 2 page(s)

Belarus ranks 99th internationally in terms of per capita coffee consumption. While this necessarily would seem shocking to most individuals attempting to enter the coffee market, we believe that this is an opportunity for our firm to organically grow a market by converting the citizens of Belarus to coffee consumers. In fact, the transition for tea to coffee is already occurring within this nation, as indicated by the Euromonit0r which establishes Belarus as one of the fastest growing coffee markets as calculated over the last 5 years as a consequence of instant coffee. As a traditionally tea drinking country, there are not many ideological objections to coffee, rather the barrier to consumers currently drinking coffee is mere convenience. This means that it is important to ensure that the most valued aspect of the positioning and market choice for Starbucks infrastructure, ensure convenient shopping experiences for the citizens of Belarus. Furthermore, the Belarusian market is increasingly attractive because trade restrictions with Guatemala are weakening, which necessarily decreases the cost of coffee beans. In so far as the costs of goods remain low, our organization can soar well above the margins.

The economic conditions for entering Belarus could not be better. After reporting a 3.5% gain in GDP in the first quarter of 2013, Belarus is poised to make significant gains for the remainder of the year. Now is the perfect opportunity to enter this market and begin to profit. It’s a thriving economy with ample room for growth. There are no cultural objections to coffee, and the number 1 barrier will be solved by the core competency of our business model, Convenience. Also, international investments for Belarus are 12.5% higher than last year. As international investments rise, business travel follows, which increase our chance to capture tourist as well. Therefore, capitalizing on Belarus is best done now.

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