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ID number:844270
Published: 26.01.2018.
Language: English
Level: College/University
Literature: 27 units
References: Used
Time period viewed: 2016 - 2020 years
Table of contents
Nr. Chapter  Page.
  History    4
  Financial data    5
  Countries of Current Operations    6
  Products They are Selling    7
  Company’s Administrative Heritage    7
  Motivation for New Target Country    8
  Overview of Riga, Latvia    8
  Market research    9
  Climate    9
  Coffee and Tea Culture    9
  Demographic Situation    9
  Competitors    10
  Double Coffee    10
  Coffee Inn    11
  Index Café    11
  Caif Café    11
  Starbucks will not enter Latvia market    11
  Costa Coffee Home Country (UK) Local Advantages    12
  Factor conditionals: local resources    12
  Demand conditionals    12
  Related and Supporting Industries    13
  Firm Strategy    13
  Host Country (Latvia) Local Advantages    14
  Factor conditionals    14
  Demand conditionals    14
  Related and Supporting Industries    14
  Firm Strategy    15
  Firm Specific Advantages    15
  Routines    16
  Recombination Capabilities    17
  Core Competencies    18
  Internationally Non-Transferable Firm-Specific Advantages    20
  Pattern    20
  Bounded rationality issues    21
  Bounded reliability issues    22
  Distances    23

Cultural distance
Latvia is country with deeply engrained coffee drinking culture, but local tastes are sometimes very different from what offers Costa Coffee, therefore we can observe different menu in home country UK and in host country Latvia.
Another cultural barrier could be Latvians wish to choose local products and local services. As Latvia is small country and local representatives are only 2 millions, there is “unwritten law” to choose local production and help locals with this gesture. Costa Coffee could associate with globalization, export and with “stranger” feeling.
Europe’s and especially North Europe café traditions are entrenched and subtly different from those in UK. For example, in many café in Latvia customers can purchase light lunches and pastries as well as coffee. A lot of people in middle age visit café in general when they visit theaters, concert halls or opera. These traditions contrast with Costa Coffee main “take to go” approach.
Geographic distance
Geographic distance has affected Costa Coffee international expansion path. Costa Coffee opened Scotland stores as early as 1980s’ operating them essentially as domestic stores. In its international expansion, Costa Coffee launched its first stores in Dublin, Ireland – country closest to UK, both geographically and culturally.

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