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S3713179_a2.docx - RMIT International University Vietnam...

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RMIT International University VietnamBUSM 3311 – International BusinessA2I declare that in submitting all work for this assessment I have read, understoodand agree to the content and expectations of the assessment declaration.1Subject Code:BUSM3311Subject Name:International BusinessLocation & CampusRMIT Vietnam , HCMC / HanoiClass Group Number:2Student name:Cao Ngoc NganStudent Number:S3713179Your Teacher:Tzach RonenWord Count:1274
GLORIA JEAN’SCOFFEE QUIETLY WITHDREW FROM THE VIETNAMESE MARKETAFTER A DECADE OF SLOW-DRIP EXPANSIONIntroduction:Globalization has led to drastic changes in business operations worldwide. According to MaureenWilson, globalization is a term describing a growing interconnectedness and integration of economiesacross national borders (Healy and2011). It has become an irreplaceable part of businesses. Thedevelopment of globalization has enabled businesses to expand their brands in many other potentialmarkets. For foreign investors, the Vietnamese market is always considered as one of Asia’s mostattractive destinations with its favorable geographical location, abundant human resources and cheapproduction costs (Breu, Dobbs & Reme 2012). Many international businesses have developed in the2
Vietnamese market, however, there are very few brands that can survive in this market. Withoutadequate preparation, foreign brands could not stand firm in the market. Gloria Jean’s Coffees is one ofthe brands that facing failure when entering the Vietnamese coffee market.Gloria Jean's Coffees is a well-known Australian coffee brand with more than 1,000 cafes in 39countries. In 2007, Gloria Jean’s Coffee approached the Vietnamese market through a franchiseagreement secured by Viet Lifestyle JSC (Doanh 2017). This coffee brand started operating in Vietnamwith an expectation that the business would grow successfully as it did in Thailand and Malaysia.Unfortunately, it did not and Gloria Jean’s Coffee had quietly closed its last store in 2016, marking theend of the Gloria Jean’s Coffee business in Vietnam. This report will analyze the main reasons for thisfailure and give some recommendations for this situation.Analysis:1.The lack of the Vietnamese coffee market insight.The carelessness in the market research is the first reason for the failure of Gloria Jean’s Coffee inthe process of internationalization to the Vietnamese market. After great success in many Asianmarkets, they have been careless in probing the market. The Uppsala model acknowledges that the lackof knowledge about the specifications of new markets to be an important barrier in terms of becomingsuccessful in the respective market (Dudovskiy 2014). Instead of learning about Vietnamese tastes andneeds, Gloria Jean's Coffees arbitrarily developed the Australian model in Vietnam because they

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Term
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Marketing, Ho Chi Minh City, Coffea arabica

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