Introduction
Global strategy involves the adoption of a similar strategy across all countries of operation while international strategy involves adaptability to local requirements. The coffee industry like any other business in the agricultural sector faces major fluctuations in the supply of produce (Ganeri, 2014 p.9). Operating a coffee business, therefore, requires identification of a reliable supplier of quality coffee beans to prevent shortages and the subsequent loss of customers. Brazil is the world’s largest coffee producer hence a perfect choice for a coffee business looking for a supplier. The country grows Arabica and Robusta species of coffee for both domestic consumption and exportation.
Economic Advantage
Sourcing coffee beans from Brazil comes with several economic benefits since the country has a reputation of the largest coffee producer. This translates into reliability in terms of supply hence eliminating the risk of shortages (Ganeri, 2014 p.28). The country offers competitive prices for the coffee beans in the global market since the higher the level of supply the lower the prices. This can lower the cost of production for Tim’s coffee shop hence increase the profitability margin. With low production costs, the coffee shop could offer low prices for their consumers, which would also offer the business a competitive edge.
Environmental Laws
Environmental conservation is an important topic for most nations in the world to prevent global warming and depletion of natural resources. Brazil has a strong focus on preservation of its natural resources and protecting its forested areas is one of the country’s major focuses (Ganeri, 2014 p.41). The country has laws protecting forested areas, which works to protect the climate in the region. Waste management is another area of focus for environmental laws in Brazil, protecting the environment against dumping and irresponsible waste disposal.
Marketing Advantage
Brazil has an established reputation for quality coffee production as well as reliability in its supply of coffee beans to the global market (Ganeri , 2014 p.33). Using the country as the trusted supplier for the business offers a competitive advantage. Consumers are comfortable with products from reputable regions and organizations. This is, therefore, a marketing point for the coffee shop by highlighting that their coffee comes from Brazil, the world’s largest coffee producer. Branding is a marketing strategy that promises the business success in the local and global market. Association with Brazilian coffee could act as a global strategy in marketing coffee in all areas across the world.
Effect on the Bottom-Line
Maximization of revenue and cost minimization is the main objectives of any business. Choosing a supplier from Brazil will improve the profitability level of the business by lowering the cost of production (Ganeri , 2014 p.105). This allows the business to offer low prices for their products while maintaining the high-profit margin. The business, therefore, has a short-term financial success as well as long-term profitability that translates into sustainability.
Conclusion
Identification of a supplier for a business is a crucial decision that affects the future of the business in terms of success. The level of supply affects the production and the revenue generated from sales volumes. Choosing Brazil as the supplier country is a wise choice since the country had a strong establishment in the industry, which reduces the business’ marketing burden in trying to introduce the brand to the market (Ganeri, 2014 p.76). A global marketing strategy is, therefore, applicable in this case where a similar brand features across all regions.
Reference
Ganeri A. (2014). Coffee in Brazil. London: Paintree.
