CAGE Analysis

The CAGE analysis (cultural, administrative, geographic and economic) provides a way for organizations to
navigate the attractiveness of foreign markets based on the distance between an organization’s country
and the country in which it would like to conduct business. A country’s cultural attributes “determine how
people interact with one another and with companies and institutions.” Administrative or political
distance greatly affects trade. Geographic distance, not only in terms of actual distance but also the
physical size of the country, is important to consider in organizational expansion. “In general, the farther
you are from a country, the harder it will be to conduct business in that country.” Finally, the “wealth or
income of consumers is the most important economic attribute that creates distance between countries,
and it has a marked effect on the levels of trade and the types of partners a country trades with

Brazil
Opening new American-style coffee shops
Cultural
Specialty coffee market growing
Administrative
Social programs grow middle class
(political)
Geographic Capital is 9,000km/12 flight hours from Rome
Largest grower of coffee in the world, second largest consumer market
Economic Growing middle class
Eighth largest economy in the world

China

Cultural

Administrative
(political)
Geographic
Economic

Germany

Cultural

Administrative
(political)
Geographic
Economic
 India

Cultural

Administrative
(political)
Geographic

Economic

Japan

Cultural

Administrative
(political)
Geographic
Economic

United Kingdom

Cultural

Administrative
(political)
Geographic
Economic

United States

Cultural

Administrative
(political)
Geographic
Economic
 SWOT ANALYSES
(For Illy)

Strengths Weaknesses

1. 1.

2. 2.

3. 3.

4.

Opportunities Possible solutions to address Possible solutions to address

opportunities and strengths opportunities and weaknesses
1.
1.
2. 1.
2.
3. 2.
3.
3.

Threats Possible solutions to address Possible solutions to address

threats and strengths threats and weaknesses.
1.

2. 1. 1.

3. 2. 2.

4. 3. 3.

5.
 GE MATRIX
(Allocate Countries into one of the boxes)

Invest or Grow Earn Selectively Harvest or Divest

Total Coffee Sales in US$ millionMarket Attractiveness

High

Brazil

Medium

Low

High Medium Low

Competitive Position
 BCG MATRIX
(Allocate Countries into one of the boxes)

Invest or Grow Harvest or Divest

Potential Market Growth 2011-2015Market Attractiveness

High

Japan
Low

High Low

Market Share