http://www.economist.com/news/business/21693945-countrys-roasters-have-been-slow-adapt-new-coffee-era-not-so-espresso
This article focuses on the coffee market and the Italian resistance to modernize their coffee roasting process. In comparison to Canadian and Swiss companies, who create personal coffee makers. Even thought Italy reports increased reexports from 6.7 percent to 8.9 percent, they are not doing enough to be competitive in a growing industry. Italy's biggest coffee firm, Lavazza bought Douwe Egbert's Carte Noire, making it a market leader in France, Italian coffee firms are not doing enough to reach at home consumers, who are already familiar with brands and names like Nestle and Nespresso. Italian firms are focusing on quality and their "laurels" but is reputation and quality strong enough argument, when ease and convenience comes from bigger better known firms? But if the market is shifting to apps for buying a perfect blend and technology that better monitors water, and grinding method the old fashioned Italian firms may not be able to compete.
This is an interesting article because I did not know much information about coffee sales abroad. It is clear to me, however, that the Italian type of coffee definitely needs to be modernized in order to compete with the Canadian and Swiss brands. Even though they seem to be doing decently well with growing sales year to year, I still believe it would be beneficial for them to modernize and possibly advertise in order to remain competitive in that kind of market.
ReplyDeleteI also thought this was interesting. in order for Italy to be competitive with other companies they will have to become modernized. this would make them a lot more money, they are making a profit now but could multiple that profit by a lot if modernized.
ReplyDeleteI think modernization could be a possible benefit for the company, however depending on the size of the Italian company I wonder if they would be able to compete with brands like nestle due to economies of scale. I would think that product differentiation as a 'traditional and best' coffee would be enough to allow them to compete but if they are struggling i would agree that modernization might be key.
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