Identify and discuss the major challenges that Costa Coffee will face Essay

Identify and discuss the major challenges that Costa Coffee will face in its operations in the French market and propose suitable recommendations for overcoming or mitigating the identified challenges - Essay Example In spite of the success observed in the Costa Coffee sales in France, there are several challenges that the Costa Coffee will face inevitably. These challenges mainly involve the economic difficulties. The prime business challenges faced by the Costa Coffee as a whole are directly in relation with the economic recession from 2008. This is because the customers have been observed to become more cautious with their discretionary spending due to the high personal debt as well as unemployment. Further, social as well as cultural challenges might also be faced by the Costa Coffee. The cafe will have to not only sell Coffee but also maintain the ambience and surroundings of the cafe. This is because people not only come to drink coffee but also come to calm down and have a relaxed experience. The better the ambience, the more people will spend on coffee. Another difficulty that the Costa coffee might face is the fact that people are much more aware environmentally in the recent era. The so urce from which the coffee beans are produced as well as the way they design their supply chain as well as prepare and sell their product is of great concern by the French customers. Furthermore, the Costa Coffee is faced by great competition from other leading coffee shops within France. These include firstly star bucks as well as coffee republic and many others. This competition tends to steal the coffee customers that are vital for the increase of sales for the Costa Coffee. Further, the Costa Coffee in France would also face problems in association with the intense price competition. Due to the high prices in Costa Coffee, it is seen to target only the upper middle class and the privileged class. Also, any alteration in the development of information technology resulting in a change in the markets would definitely pose a threat to the Costa Coffee in France. The major problems faced by the Costa Coffee can be dealt by focusing on attracting more customers. This can be done by