Assessment of initial launch into China Essay

Please watch the video case of Michels patisserie and attend to the following question in written format (also prepare the answers to former(a) questions listed on the tutorial agenda for tutorial discussion) What is your assessment of Michels sign launch into China? What would you have d peerless differently?China has a tea-drinking culture, and tea has dominated for centuries. The coffee berry consumption in China is relatively low and although the coffee consumption is growing in some picky cities in China e.g. Shanghai and Beijing. The coffee market giant such as Starbucks has already had 500 shops in China and Chinese heap are more attracted by the Starbucks image and experience than to the coffee itself. Michels may face the difficulties when operating in Chin in China. First, the spot source of competitive advantage of Michels is about its successful franchising dodging, which watchful in a central bakery and then delivered to the franchisees stores and therefore franchisees need only minimal preparations to start their business. However, this competitive advantage may blur be run of the issues of logistic and bakery set up (localized central bakery). If Michels could not deal with those issues, which comprised with their competitive advantage, results in less attractive and lucrative of the brand.Therefore, it is hard to Michels to maintain its competitive advantages to compete with other coffee giants in this case- Starbucks, which has invested heavily in the brand development as one of the key competitive advantage in China. In addition, the franchise system in China is not mature the local managers dont have much managerial skill to understand the franchise concept, and very much they might do what they want to regardless the franchise agreement, which may cause the inconsistent brand image and operations between home and legions country. Before Michels initial launch into China they should had a more depth understanding of the Chines e coffee market. In the current case, the Chinese franchisee mentioned that the taste of Australian cakes is too sweet for Shanghai people and the side menu is difficult for local customer. All this kind of question outhouse be solved by pre market research. Marketing plans are purify to be consistent Michels changed their franchise system and some market plans.