Discussion on Nestle coffee

Nestle became a part of the coffee business during 1986 when they brought Nespresso and Nescafe to their company. But now Nestle has agreed to pay $7.2 Billion dollars to market, sell, and distribute Starbucks coffees and teas internationally. This investment will allow both companies to expand their corporations further, worldwide. But a challenge that Starbucks faces with this expansion is their previously established reputation on the market. Going to Starbucks, ordering a drink, having a nice quiet study space. Whenever I go in I always see business professionals or students doing work. So entering the global market selling just their product could be a little difficult. But with the help of Nestle, who has a lot of experience in the expansion of going worldwide, could be great for Starbucks. Nestle has experience in where their key target market is located, and where Starbucks would best benefit. Coffee may not be the drink of choice in some areas, so that location may have a huge market for Starbucks' tea products. Overall this is a great opportunity for both companies. Nestle, who has been more so overpowered by Starbucks, now has a chance to partner with the company and get their name back out there, as well as give Starbucks the chance to expand more globally. 

Reply on Discussion on Nestle coffee

I agree with all the facts that are discussed above. Nestle is a significant brand take creates & sell coffee products in many parts of the world. Many people whether they are at the home or some other place can enjoy coffee made by Nestle Corporation. When Starbucks packaged, coffee is going to be distributed by Nestle than Starbucks have the opportunity to reach a maximum number of customers. In the international market, the competition has increased up to a lot of extents, and many organisations are trying to capture the market share so that they can compete successfully with the competitors. If the corporations do not make any effort in decreasing the competition than there is a massive chance that the company will unable to capture the market share and to sustain in the long run.