The Espresso Lane to Global Markets by Alon Ilan,
Meredith Lohwasser
Discussion Questions:
1. Conduct a CAGE analysis.
2. Create a SWOT analysis.
3. What does analysis of the CAGE and SWOT show you? Based on these results, which international
market should Espressamente pursue next?
4. Conduct analysis using the GE Matrix and the BCG Matrix. What do you learn from them?
5. Which variables from the case are the most important in Reale’s decision-making?
6. How should Reale prioritize the foreign markets?
7. What mode of entry should Reale consider? Should it be different based on the market selected?
What are the relevant environmental and organizational variables that should impact the decision?
, W12039
Teaching Note
THE ESPRESSO LANE TO GLOBAL MARKETS
CASE SYNOPSIS
Founded in Trieste, Italy, Illy marketed a unique blend of coffee drinks in more than 50,000 high-end
restaurants and coffeehouses in over 140 countries. Espressamente was the company’s own franchised
coffeehouse.
Christophe Reale, managing director of Espressamente at Illy, was faced with the challenge of the
internationalization of Espressamente, which included market selection and selection of an appropriate
mode of entry.
TEACHING OBJECTIVES
This case is appropriate for use in international business, international marketing and business strategy
courses to illustrate market selection and mode of entry strategies. It provides the opportunity to combine
quantitative and qualitative data to determine which markets to select and which entry strategies to
pursue.
Allows students to evaluate potential markets using common business tools such as CAGE analysis,
SWOT analysis and the GE and BCG matrices. Apply the various models to select an entry mode
strategy.
Encourages students to analyze the qualitative and quantitative data presented to the decision-maker.
Asks students to prioritize foreign markets to determine the country in which the decision-maker
should enter next.
Asks students to consider multiple modes of entry and the relevant environmental and organizational
variables that should impact the decision.
Asks students to identify the drivers of international market expansion.