Name of the group: TeaOlogy

Fanni Simon - 2000/07/20

Ronak Rad Shambayati - 1995/07/06
Thi Ngoc Quynh Tran - 1996/09/05
Viktor Blomkvist - 2000/09/22
Course name: STRATEGY AND INTERNATIONAL MARKETING
Course Code: FOA324

TeaOlogy - Market Entry Plan for Sweden

Winter 2024
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 TABLE OF CONTENTS

INTRODUCTION..................................................................................................................................3
RESEARCH QUESTION..................................................................................................................... 5
CONCEPTUAL FRAMEWORK / THEORIES................................................................................. 6
METHOD............................................................................................................................................. 10
FINDINGS............................................................................................................................................ 12
ANALYSIS............................................................................................................................................14
CONCLUSION.....................................................................................................................................23
RECOMMENDATIONS..................................................................................................................... 24
REFERENCE LIST............................................................................................................................. 25

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INTRODUCTION (Fanni)

TeaOlogy, a vibrant and innovative tea company rooted in the fusion of bubble teas with Vietnamese
herbal tea culture, stands poised for expansion into the Swedish national market. As a company
deeply committed to offering premium tea-based beverages coupled with a rich variation of
experiences, TeaOlogy seeks to create its niche in a market known for its discerning taste and
appreciation for diverse culinary experiences.

This study aims to uncover the key strategies needed for TeaOlogy to enter and thrive in the Swedish
market. The analyses focus on understanding competitors, market trends, and the essential strategies
for TeaOlogy's success in entering the market and growing over time.

Company Overview

Founded on the belief that tea is not just a beverage but a canvas for creativity and community
engagement, TeaOlogy presents a distinctive approach to tea culture. Embracing premium teas
sourced from reputable suppliers across the globe and infusing them with innovative mixing
techniques, TeaOlogy offers a wide range of freshly brewed beverages. Moreover, the inclusion of
unique toppings, Korean shaved ice desserts, and corndogs serves as a testament to the company's
dedication to providing an immersive experience to its patrons.

Critical Analyses for TeaOlogy's Market Entry and Growth Plan

The research will focus on six essential analyses critical to TeaOlogy's strategic market entry and
subsequent growth trajectory:

- Market Entry Strategy Analysis: An exploration of the strategic approach and pathways
TeaOlogy must undertake to enter the Swedish market successfully.

- Porter's Five Forces Analysis: A comprehensive evaluation of the competitive forces within
the Swedish tea beverage industry to understand the market attractiveness and competitive
landscape.

- SWOT Analysis: A detailed examination of TeaOlogy's internal strengths and weaknesses,

alongside external opportunities and threats in the Swedish market context.

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 - Diamond Analysis: An assessment of TeaOlogy's competitive advantage in terms of various
factors such as firm strategy, structure, rivalry, demand conditions, related and supporting
industries, and factor conditions.

- Resource-Based Analysis: A scrutiny of TeaOlogy's resources and capabilities to ascertain its

competitive advantage and sustainability in the Swedish market.

- Competitive Analysis: A comparative study of TeaOlogy's offerings, branding strategies,

customer experience, and market positioning vis-à-vis its competitors in Sweden.

The culmination of these analyses will provide actionable insights and strategic recommendations
essential for TeaOlogy's successful market entry, ensuring a distinctive presence and sustainable
growth in the Swedish national market.

TeaOlogy's Unique Approach: Blending Bubble Tea with Vietnamese Herbal Teas

At the heart of TeaOlogy lies a distinct philosophy – a harmonious amalgamation of tradition and
modernity within the realm of tea culture. Envisioned as an oasis for tea enthusiasts seeking an
elevated sensory journey, TeaOlogy's signature lies in its fusion of classic bubble tea elements with
the subtlety and depth of Vietnamese herbal teas. Each beverage crafted at TeaOlogy is a testament to
the artistry behind combining high-quality teas sourced from renowned global suppliers with the
exotic essence of Vietnamese herbal infusions.

The result is a tantalizing palette of flavors that not only appeases the discerning taste buds but also
transports individuals on a cultural voyage, embracing authenticity and innovation in every sip. With a
commitment to excellence and a penchant for pushing boundaries, TeaOlogy sets itself apart as a
purveyor of not just beverages but a celebration of diverse tea traditions.

Scope and Issues Regarding TeaOlogy's Potential Market Entry into a New Country

As TeaOlogy contemplates venturing into a new country, several critical issues and scopes come into
play. Expanding its distinctive tea culture and experiential offerings to a fresh market presents a
canvas ripe with possibilities and challenges. The scope of this endeavor encompasses multifaceted
considerations, from understanding the target market's preferences and cultural nuances to devising a
strategic roadmap for seamless integration and sustainable growth.

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Key Issues to Be Addressed Include:

- Market Analysis: Understanding the new country's tea beverage industry landscape, consumer
preferences, market trends, and competitive dynamics.
- Strategic Market Entry: Developing a comprehensive strategy for TeaOlogy's market entry,
including market positioning, product localization, and brand adaptation.
- Operational Preparedness: Ensuring compliance with local regulations, optimizing supply
chain logistics, and establishing operational frameworks aligned with the new market's
requirements.
- Differentiation and Innovation: Leveraging TeaOlogy's unique blend of bubble tea and
Vietnamese herbal teas while innovating to cater to the specific tastes and preferences of the
new market.
- Customer Engagement and Experience: Creating immersive experiences and fostering
community engagement to resonate with the local audience, enhancing brand loyalty and
recognition.

Addressing these issues comprehensively will lay the foundation for TeaOlogy's successful market
entry and sustained growth, enabling the company to imprint its unique tea culture in a new cultural
landscape.

RESEARCH QUESTION

"How can TeaOlogy effectively enter and succeed in the Swedish national market,
considering the key factors crucial for a successful market entry?"

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CONCEPTUAL FRAMEWORK / THEORIES

1. Porter's Five Forces Analysis (Ronak)

Porter's Five Forces framework serves as a cornerstone in strategic analysis, offering a structured
approach to assess competitive forces within an industry. This framework, outlined in "Contemporary
Strategy Analysis" by Robert M. Grant, provides a systematic evaluation of five key aspects: the
bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitutes, and
industry rivalry. By leveraging Grant's insights, this analysis facilitates a comprehensive examination
of the overall attractiveness of a market.
Each force within the framework enables a nuanced understanding of the market dynamics,
identifying potential challenges and opportunities for businesses aiming to enter or operate within that
industry. The Bargaining Power of Suppliers evaluates the influence suppliers wield over pricing and
quality, impacting a company's profitability. Meanwhile, the Bargaining Power of Buyers assesses the
control buyers have in negotiating prices and demanding quality, impacting a company's sales and
revenue. The Threat of New Entrants scrutinizes barriers to entry, deterring potential competitors from
entering the market. Similarly, the Threat of Substitutes considers alternative products or services that
could sway consumer preferences. Finally, Industry Rivalry examines the intensity of competition
among existing players, affecting pricing strategies and market share. Together, these forces provide a
holistic view, guiding strategic decisions and understanding the competitive landscape within an
industry.
The framework, widely regarded in strategic management, emphasizes the significance of
understanding industry structure and competitive dynamics (Michael E. Porter, Free Press, 2008). It
aids TeaOlogy, in exploring the Sweden market, by dissecting forces influencing profitability and
devising strategic responses.

2. Diamond Analysis (Quynh)

Porter’s Diamond model was introduced by Michael Porter in 1990, this model is used to analyze and
understand the competitive advantage of nations in a specific field that is influenced by four mutually
reinforcing factors which are Factor Conditions, Related and supporting industries, Demand
conditions, Strategy, structure, and rivalry, forming a diamond-shaped framework. (Grant, 2019 p.
275)
According to (Charis, 2019), this model clarifies the complex interplay factors that shape a nation's
ability to excel and maintain competitiveness in certain fields.

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Factor Conditions: This aspect mentions the country's inherent resources ranging from basic factors
such as natural resources, land, labor and technological capabilities, and innovation capacity. The
quality and quantity of these resources form the foundation for industry competitiveness.
Demand Conditions: The nature and sophistication of the targeted nation's market demand influence
industry competitiveness. A strong and demanding market stimulates companies to innovate and pull
a nation‘s products and services abroad.
Related and Supporting Industries: An ideal for sustainable competitive advantages in a nation
requires an ecosystem of competitive supporting industries such as suppliers, and supporting services,
hence this can help the industry grow optimize processes, and drive innovation.
Firm Strategy, Structure, and Rivalry: The dynamic of national competition, structures, and the
marketing strategies adopted by other rivalries are pivotal factors in competitive advantages when the
firm decides to expand into a new market.

3. Resource-Based Analysis (Quynh)

The Resource-Based View (RBV) is a strategic management framework that asserts the importance of
internal resources and capabilities in a company to accomplish sustained competitive advantage. In
other words, these are the primary motivations for a firm's performance as well as long-term success.
According to (Grant, 2019 p. 113), there are three main types of resources in the RBV framework:
tangible, intangible, and human, more details physical capital, financial resources, technology,
intellectual property, human capital, brand reputation, and organizational culture. Effectively
leveraging these resources can help firms create value, differentiate themselves in intense competition
and positioning in the market, and generate and lead to sustainable competitive advantages.
Key components of the RBV conceptual framework include Resource Identification: Tangible
(Financial as cash, borrowing capacity, Physical such as plant, equipment, land). Intangible such as
the firm’s technology, reputation, and organizational culture. Human resources such as skilled and
productive workforce.
Sustained Competitive Advantage: The RBV model emphasizes that the sustained competitive
advantage of the firm originates from owning resources and capabilities that are Rare, Valuable,
Inimitable, and Organisation (VRIO). The resources that meet these criteria can foster sustained
competitive advantage and help the firm's market position and profitability over time.
By applying the RBV framework, firms can systematically develop and leverage their internal
resources and capabilities to create sustainable competitive advantages and achieve the long-term
goals of the organization.

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4. Competitor Analysis (Fanni)

Competitor Analysis, as explained by Grant, involves a multifaceted approach. In his book

'Contemporary Strategy Analysis', he emphasizes the significance of systematically gathering
information about rivals, understanding their current strategies, and using this knowledge to predict
and influence their future behavior in the market. (Grant, 2019)
Firstly, in the case of TeaOlogy, the competitor analysis involves identifying competitors and
recognizing both local and international rivals present in the market, exemplified by TeaOlogy's
counterparts like CoCo Fresh Tea & Juice, Machi Machi Boba Tea House, and Chatime in Sweden's
bubble tea industry.
Secondly, the framework evaluates competitors' strategies, encompassing aspects such as product
offerings, pricing strategies, branding and marketing tactics, customer experience initiatives,
expansion plans, sustainability practices, strengths and weaknesses, customer feedback, and
regulatory compliance.
Thirdly, the framework aims to predict competitor behavior, leveraging insights from their current
strategies and behaviors to anticipate their responses to market changes and TeaOlogy's strategic
moves.
Lastly, it focuses on influencing competitors' behavior positively, using gathered intelligence to shape
TeaOlogy's strategies strategically. This structured framework aids in comprehensively understanding
rivals, predicting their actions and tactically influencing the competitive landscape for TeaOlogy in
the Swedish bubble tea market. These strategies are fundamental for TeaOlogy, the Norwegian bubble
tea company, to navigate its competitive landscape effectively and make informed strategic decisions.

5. SWOT Analysis (Viktor)

The SWOT analysis is a framework that seeks to locate a company’s competitive position and to find
a strategic planning decision (Grant, 2019). The SWOT analysis will be used in this paper as a
summary of the previous analyses. This analysis is a strategic planning method used by businesses to
assess their internal strengths and weaknesses, along with external opportunities and threats in the
market. It's a structured framework that enables companies to identify what they do well (strengths)
and areas needing improvement (weaknesses) within their operations. Additionally, it helps recognize
favorable circumstances in the external environment (opportunities) that the company can capitalize
on, as well as potential challenges or risks (threats) that might hinder its progress. This analysis assists
in developing strategies to maximize strengths, minimize weaknesses, leverage opportunities, and

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mitigate threats, ultimately guiding decision-making processes for a more effective and competitive
business approach.

6. Market Entry Strategy Analysis (Viktor)

Ghauri & Cateora (2015) writes about how to use the BCG method (Boston Consulting Group), which
is a method to analyze countries before making investment choices. BCG is used to maximize the
long-term growth and profit of the company and it analyses two determining factors: country
attractiveness and competitive strength of the company. With this model, it shows the company’s
position in the new country’s market, and whether it should expand to it or not (Ghauri & Cateora,
2015).

Ghauri & Cateora (2015) writes about the process after companies have decided that they should go
international. After a decision to go international has been made by a company, it must choose a
strategy for entering the new market. The decision should be made after analyzing the company’s
capabilities and the new market’s potential for the company to choose a strategy that suits them the
best (Ghauri & Cateora, 2015).

BCG Market portfolio analysis.

If we look at the “BCG Market portfolio analysis” figure from Ghauri & Cateora (2015), we get clear
recommendations for a company’s market entry strategy. If the intended country has high
attractiveness and the company has high competitive strength, the company should invest, and vice
versa if the attractiveness and competitive strength are low (Ghauri & Cateora, 2015). The market
entry strategies that this paper will analyze are Strategic alliances and joint ventures, Direct
Investment, and Franchising/licensing.

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METHOD (Ronak)

The choice of topic:

The process of topic selection involved initial brainstorming sessions, where diverse ideas were
proposed and evaluated based on relevance, interest, and feasibility. Subsequently, the team
collectively delved into researching potential topics, analyzing market trends, and industry insights to
gauge their viability. During this phase, the team recognized the burgeoning significance of the
Swedish market in the beverage industry. Moreover, acknowledging a personal connection between
one team member and TeaOlogy's owner provided valuable insights.
The selection of TeaOlogy's entry plan into the Swedish market stems from the company's drive for
international expansion within the flourishing beverage industry. This choice was motivated by
Sweden's shift towards health-conscious consumption and the surging interest in specialty beverages.
It emerged as a result of recent market dynamics, aligning with TeaOlogy's strategic plans and the
allure of tapping into a promising, emerging market. Moreover, the owner's inclination towards
Sweden, owing to its similarities with Norway—where TeaOlogy already operates—played a
significant role. Familiarity with the Scandinavian region, coupled with successful operations in
Norway, prompted interest in expanding to Sweden, recognizing potential synergies, market
similarities, and shared consumer preferences between the two countries.
Considering these elements, all team members unanimously agreed to focus on analyzing TeaOlogy's
potential entry and success in the Swedish market. This decision aligned with recent industry trends
and leveraged the insights from the personal connection, collectively shaping the course of the
project's direction.

The chosen theories:

Employing Porter's Five Forces Analysis At the research's beginning, we scrutinized industry
competitiveness, assessing supplier power, buyer behavior, and market forces impacting TeaOlogy's
Swedish market strategies. Diamond Analysis, drawing from Robert M. Grant's insights, explored
macroeconomic factors affecting TeaOlogy's potential Swedish entry. Midway, a Resource-Based
Analysis evaluated TeaOlogy's internal strengths and distinctive resources, guided by Grant's
methodologies. Concurrently, Competitive Analysis benchmarked TeaOlogy against Swedish
competitors, incorporating insights from Grant's strategies and interview data. Later, the SWOT
Analysis aligned with Grant's principles to assess TeaOlogy's internal strengths, weaknesses, external
opportunities, and threats in Sweden. Finally, guided by "International Marketing" by Ghauri and
Cateora, the Market Entry Strategy Analysis shaped TeaOlogy's entry plan, harmonizing strategies
with available resources for a well-informed market entry.

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The choice of collecting information:
The data collection strategy included a multifaceted approach, incorporating market analysis in
conjunction with Interview conduction. These methods have been chosen after considering the
available resources and the need for primary and secondary data.
The market analysis, inspired by insights from "International Marketing" by Pervez N. Ghauri and
Philip Cateora, aimed to gather an understanding of TeaOlogy's prospects in the Swedish market.
In addition to the market analysis, the core of the data collection process as Bell, Harley, and Bryman
emphasized was an interview conducted with TeaOlogy's owner. Collaboratively designed by all team
members, the questionnaire was tailored to extract specific insights vital to TeaOlogy's potential entry
into the Swedish market. The structured email correspondence format ensured a detailed and thorough
exchange between the team and TeaOlogy's owner, allowing for a comprehensive exploration of key
aspects related to TeaOlogy's expansion strategy into Sweden.
This integrated approach, combining insights from market analysis and the direct input gathered
through the interview with TeaOlogy's owner enriched the dataset. It facilitated a nuanced
understanding of market dynamics, consumer preferences, and strategic imperatives for TeaOlogy's
successful entry into the Swedish market. This methodological blend, inspired by "International
Marketing," and “Business Research Methods "empowered the research with a diverse range of
perspectives, optimizing the relevance, depth, and comprehensiveness of the collected information.

Analysis of Information:
The analysis of gathered information followed a structured and systematic approach, designed to
distill crucial insights necessary for comprehending TeaOlogy's potential entry into the Swedish
market. This process was conducted after comprehensive data collection, incorporating market
insights from diverse sources such as global industry reports, localized inputs obtained through an
interview with TeaOlogy's owner, and broader industry trends outlined in "International Marketing"
by Pervez N. Ghauri and Philip Cateora. The analysis involved the collective efforts of the entire
research team, drawing on diverse expertise and perspectives to ensure a comprehensive evaluation.
Leveraging frameworks outlined in the referenced book, the team meticulously examined market
trends, competitive forces, consumer behaviors, and TeaOlogy's strategic capabilities. This structured
approach enabled the synthesis of actionable insights, guiding the formulation of a well-informed
market entry strategy tailored to TeaOlogy's prospective venture into the Swedish market.

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FINDINGS (Quynh)
The interview was conducted with the Founder of TeaOlogy. During the interview, the questions were
given that concentrated on the establishment of the company, intended expansion in new countries,
current marketing strategies, difficulty in opening new branches how TeaOlogy differentiates itself in
the market, and so on.
These findings will provide a better understanding of how TeaOlogy's strategy and management
thereby can help the brand successfully penetrate a new market.

Discussing the interview

Target Audience
“We focus on young customers” The Founder said.
First of all, when TeaOlogy was established, the brand strategy was to create a place at top of young
people’s minds in Oslo whenever they want to gather, not only GenZ is potential customers but only
“young in age, young in mind” people because they have a likelihood to opt for novel products more
than others group.
“Big city but should be multicultural,” The Founder said.
Milk tea is a drink originating from Asia, currently, it is in the process of becoming an
internationalized drink. Initially, the product was opened to serve the Asian community living and
studying abroad, they need to consume products from their home country, and through
word-of-mouth, young people living in the host country are interested in trying this new drink.
Therefore, choosing big and culturally diverse cities is an important strategy to help TeaOlogy spread
more through word-of-mouth. Additionally, a key characteristic of big cities is open-mindedness,
which is a prime clue for customers to decide to buy a new product and be enthusiastic about tea.

Why choose Sweden

As discussed with the Founder, she shared the brand's ambition to establish a TeaOlogy milk tea chain
across Northern Europe and then Europe. Currently, the brand has only been established for 5 years
and hopes to take its first step to Stockholm, Sweden because this city meets the brand's conditions
and strategy regarding demographics.

The Brand Strategy and Go-Global Process

The founder expressed that, at the moment, TeaOlogy confidently asserts itself as the leader in the
milk tea market in Norway. Part of the main reason is the correct marketing strategy and the spirit of
the brand that makes TeaOlogy different from its competitors in the milk tea and creative beverage
market in Norway.

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Regarding the difference, in the past five years, TeaOlogy has continuously innovated and improved
products to meet the tastes of milk tea, "we often open free testing day for all customers to experience
and give feedback" the founder said. The openness and progressive spirit of the brand are factors to
help the brand develop and compete with competitors in the long run.
Secondly, prioritize customer experience in-store: "We pay special attention to the store's layout, from
colorful wallpapers and decorations to the trendy music, it needs to only for our target customer when
they walk into the store", the founder said. To bring a unique customer experience, the founder
emphasized that everything must express the spirit of Gen Z or young people the brand organizes
various activities for customers to experience, for instance: A free Bubble tea workshop for
youngsters can come and enjoy the "Boba culture", a Halloween party, K-POP night party, and collab
with some Korean cosmetic brands like Dr.Jart to organize beauty workshops at the store.
Besides gaining customer attention, TeaOlogy is focusing on retaining customers, the brand currently
offers a loyalty program and gives free drinks to qualified loyal customers and sells brand identity
products such as tote bags, glasses, tumblers, bags for tumblers, keychains, and so on, this creates
excitement and encourages many customers to be more engaged and loyal to the brand.
With the ambition to become a market leader in Nordic and then Europe, the founder said that the
difficulty in local market research and understanding the culture of potential markets is a hard thing
for small brands "I think the current important weakness is that the entire company and its employees
are based in Oslo. For example, I want to expand into the Swedish market but currently, I do not have
much knowledge about the Swedish beverage market. Swedish consumer insight, competitor analysis
in the Swedish FnB market, is it similar to Norway? This is all just untested hypotheses and
assumptions" shared by the Founder.

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ANALYSIS

1. Porter's Five Forces Analysis (Ronak)

Porter's Five Forces offers a structured framework to analyze competitive dynamics within an
industry, ideal for examining TeaOlogy's entry into Sweden's market. Its focus on competitive rivalry,
threats of substitutes and new entrants, and buyer and supplier dynamics provides a holistic view.
(Grant, 2019)

Competitive Rivalry:
The presence of established competitors like Chatime, Machi Machi, and CoCo fresh tea & juice in
Sweden signifies intense rivalry. These competitors boast loyal customer bases, strong brand
recognition, and operational expertise, posing a challenge for TeaOlogy to carve its niche. The
competition emphasizes the need for TeaOlogy to differentiate its offerings and create a unique value
proposition to capture market share.
Threat of Substitutes:
While substitutes such as coffee, regular tea, flavored water, other alternative beverages, and DIY
bubble tea exist, TeaOlogy's distinctive bubble tea experience and special flavors mitigate this threat.
However, these alternatives still pose a moderate risk due to their appeal to different customer
segments. Nonetheless, TeaOlogy's unique offerings and experience remain a competitive advantage.
Threat of New Entrants:
Barriers like prime store locations with high foot traffic and limited raw material sourcing (tea will be
imported only from Taiwan and Vietnam) provide some protection, but the accessibility of
foundational knowledge (online recipes), moderately low initial investment, and low technological
requirements and tools moderately elevate the threat of new entrants. Additionally, the absence of
specific regulations for bubble tea might attract potential competitors.
Bargaining Power of Buyers:
TeaOlogy's target audience, Gen Z, values the unique experience and innovative offerings, indicating
moderate buyer loyalty. While price isn't a primary concern and based on interview information the
customers are not price sensitive. TeaOlogy's focus on delivering an engaging atmosphere and unique
experiences has created a loyal customer base, offering some leverage against intense price
competition.
Bargaining Power of Suppliers:
Suppliers, especially raw material suppliers, hold significant power due to being limited numbers and
their direct impact on product quality. Other suppliers, like beverage equipment, designers, and
logistics providers, contribute to TeaOlogy's operations and brand experience. Managing these
relationships is crucial to ensure quality and consistency in TeaOlogy's offerings.

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2. Diamond Analysis (Quynh)

Porter’s Diamond framework is widely known as the best way to examine the competitive advantage
of nations in specific industries. In this case, adopting this framework can help to have the best
understanding of whether TeaOlogy expanding its brand in the new market which is Sweden.

Factor Condition:
The first thing that should be mentioned is that Sweden shares a border with Norway in the west.
Therefore, opening TeaOlogy branch in Sweden can be a good idea in sharing a warehouse because
TeaOlogy already owns a large storeroom of tea where the tea leaves can be stored and maintained the
quality and delivered consignment of tea to Sweden. In the first stage of opening a store, this can help
the brand save a large amount of money in warehouse and land. Secondly, Sweden has the largest
population among Nordic countries in 2023 (Statista), this also offers an abundant young and dynamic
workforce in the F&B sector both full-time and part-time.

Demand Condition:
In Sweden, there is a strong demand in Fika, this means it demand to find a place for communal
gathering spaces and enjoyment is high. Additionally, Stockholm is characterized as a multicultural
city, with a significant Asian already bubble tea love community. Stockholm residents also embody an
open-minded populace, hence this diversity and openness contribute to the pronounced demand for
embracing new kinds of drink.

Firm Strategy, Structure, and Rivalry:

Being a strong demand in Fika, Sweden is a lucrative market for various competitors to enter. At
present, TeaOlogy already has strong direct competitors in the milk-tea industry such as Chatime,
Coco, Machi Machi, and so on. Espresso House, Bröd & Salt, and many traditional Fika shops are
also considered competitors. Tealogy would need to assess existing competitors in the beverage
market, their strategies, and the market structures to identify potential challenges and opportunities to
differentiate itself and capitalize on its unique offerings in the market.

Related and Supporting Industries:

Tealogy might evaluate the presence and strength of supporting industries in Sweden, such as
packaging materials, drink ingredients, store setup goods, and distribution channels. Additionally,
partnerships with local delivery businesses such as Bolt, Foodora, Ubereat, and so on could enhance
Tealogy's supply chain efficiency with the e-commerce system embedded on the website.

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3. Resource-Based Analysis (Quynh)
When entering a new market, it is important to identify and leverage TeaOlogy's internal resources
and capabilities to achieve a sustainable competitive advantage by examining the Resource-Based
View framework.
Resource Identification

Tangible:
Tangible resources refer to physical assets like facilities, in TeaOlogy's case, owing 9 stores in the city
center of Oslo, another store in downtown Bergen, and a large warehouse to store and maintain the
quality of tea leaves as well as machinery and equipment used in tea brewing, mixing beverages, or
packaging. Other physical tangible resources are financial, and investment capital that they intend to
expand a chain in new markets.

Intangible:
One of the main features of this type of resource is brand reputation TeaOlogy is well-known as the
"Finest milk tea in Oslo" and Top 1 on TripAdvisor and Yelp. Besides, technology and innovation are
pivotal factors in driving the company to achieve sustained competitive advantage. For instance:
unique tea blends or creative beverages.

Human resources such as a young and dynamic workforce that are well-trained follow the brand spirit
and actively communicate to customers via social media as well as update the newest social media
trends to catch customers' attention.

The VRIO framework is applied in this case to evaluate the resources and help the firm better
understand its competitive potential and determine strategic focus. Resources that score positively in
all aspects of VRIO are likely to provide sustained competitive advantage, more details are as follows:

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 The VRIO framework and evaluation of TeaOlogy resources

The boxed resources that qualify as Rare, Valuable, Inimitable, and Organisation are identified core
competencies and can be used as a strategic focus and competitive positioning TeaOlogy in the
intense competition by leveraging its strengths or mitigating weaknesses specifically innovative
product developments, Unique tea blends and customer store experience.

4. Sustainability Initiatives: A Commitment to Environmental and Social Responsibility (Quynh)

At present, a milk tea chain in Norway, has well established itself as a leader in sustainability within
the milk tea brand and creative beverage through various initiatives aimed at reducing environmental
impact and promoting social welfare.
One of TeaOlogy's key sustainability commitments is that the brand has been experimenting with
eco-friendly store designs and implementing reusable packaging as well as managing waste in-store
solutions to minimize single-use plastic waste.
Concerning health and raising the consciousness of public health, TeaOlogy has been embracing
responsibly sourcing practices the brand commits that 100 percent of milk tea is made from vegan
with plant-based milk and topping with no adding synthetic syrups and artificial flavors. That
emphasizes a commitment to ethical and sustainable sourcing practices and involves partnerships with
suppliers adhering to sustainable agriculture practices.
In addition, TeaOlogy emphasizes that equality in society is very important, hence this drives the
brand to promote a donation campaign with a part amount from the order can be transferred to the

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Ukrainian Children Fund, Palestinian in Gaza to support aid and food and support Women equal right
in NGOs in some specific range time.
In conclusion, TeaOlogy's multifaceted sustainability initiatives underscore its commitment to
environmental stewardship and social responsibility. These activities not only enhance its brand
reputation but also set a commendable example for the food and beverage industry in embracing
sustainability. Shortly, sustainability is an essential action and should be embedded consistently with
TeaOlogy in internationalization but this needs to be more transparency and communication in an
efficient way as this assists the brand in building trust and attracting consumers who prioritize
environmentally conscious brands.

5. Competitor Analysis (Fanni)

Identifying Competitors:
Research indicates various local and international competitors in Sweden, such as CoCo Fresh Tea &
Juice, Machi Machi Boba Tea House, and Chatime. These chains offer a range of bubble tea and
tea-based beverages along with some desserts and snacks.

Evaluating Product Offerings:

TeaOlogy stands out due to its fusion of traditional bubble teas with Vietnamese herbal tea culture,
offering a unique blend of flavors and toppings. Compared to competitors, TeaOlogy's inclusion of
Korean shaved ice desserts and corndogs provides a diverse menu, setting it apart from other bubble
tea shops.

Assessing Pricing Strategy:

TeaOlogy offers a scale of regular and premium products. Pricing falls within the competitive range,
slightly higher due to the premium quality and unique offerings. Competitors maintain similar pricing
strategies for their beverages and snacks. Although due to the company’s thrive for inclusivity, they
also offer products in a lower price range.

Examining Branding and Marketing:

TeaOlogy's branding focuses on creating a vibrant social space and community engagement. They
actively use social media for promotions, giveaways, and event announcements. Competitors employ
similar tactics, emphasizing quality and community but with variations in branding style.

Understanding Customer Experience:

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TeaOlogy emphasizes a welcoming atmosphere and quality service. Competitors also focus on
providing a ‘cozy ambiance’ and friendly service, but TeaOlogy's themed nights and diverse menu
offerings give it an edge in customer experience.

Reviewing Market Reach and Expansion Plans:

TeaOlogy's plan to enter the Swedish market involves targeting urban areas with high foot traffic.
Competitors have established themselves in major cities all around the world, while TeaOlogy is
currently only present in Norway. Although TeaOlogy's expansion plans align with emerging market
trends and consumer preferences.

Considering Sustainable Practices and Innovation:

TeaOlogy's commitment to sustainability with reusable cups aligns with growing environmental
awareness. Competitors are beginning to adopt similar practices, although TeaOlogy's innovative
blend of Vietnamese herbal tea culture sets it apart in terms of product innovation.

Analyzing Strengths and Weaknesses:

TeaOlogy's strengths lie in its unique product offerings, diverse menu, and strong branding. However,
potential weaknesses could include the challenge of introducing a new concept to the market and the
need for effective localization of offerings.

Gathering Customer Feedback and Reviews:

Positive customer feedback highlights TeaOlogy's flavorful drinks, engaging events, and welcoming
ambiance. Competitors also receive praise for their quality products and customer service, providing
healthy competition.

Regulatory Compliance and Operational Considerations:

Both TeaOlogy and its competitors adhere to health and safety standards. Understanding local
regulations and operational guidelines will be essential for TeaOlogy's smooth entry and ongoing
operations in Sweden.

6. Market Entry Strategy Analysis (Viktor)

When looking at the Figure BCG Market portfolio analysis and having TeaOlogy in account, you can
see that they are located mid-high on both factors. The portfolio recommends the company to be in a
position to invest (Ghauri & Cateora, 2015). There are a lot of market entry strategies for a company
to choose from when investing and going abroad. Below, we have listed four market entry strategies

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that we believe are possible and suitable for TeaOlogy if choosing to expand to a new country. The
strategies considered are strategic alliance, joint venture, direct investment, or franchising/licensing.

Strategic Alliance & Joint Venture:

Getting together with another company and working for mutual benefits is something that could
benefit TeaOlogy. When forming strategic alliances, it is also beneficial in the way that you gain the
local company’s expertise and knowledge about the new market (Ghauri & Cateora, 2015). A joint
venture differs from the above in the sense that the two companies get together and form a new
business entity. A joint venture is more binding and less flexible than a strategic alliance. Both
Strategic alliances and joint ventures demand a great investment that increases control (Ghauri &
Cateora, 2015). But it also comes with more of a risk, since the company can lose all the assets they
invested.

Direct Investment:
The strategy with the most control is direct investment (Ghauri & Cateora, 2015). In a direct
investment, TeaOlogy has 100% control over its business and marketing operations since they are
investing all the assets alone. But with all that, they also get 100% of the risks that follow. So if
TeaOlogy has the capital to go with direct investment, it can be a possible entry strategy for them.

Franchising/licensing:
Franchising is an option for entering new markets for service companies. While licensing is more of
an option for companies manufacturing goods. Franchising comes with a bit more risk and a bit more
control, relative to just exporting for example(Ghauri & Cateora, 2015). With franchising, you have
contracts and agreements that state what the franchisee can and cannot do. The franchiser also
provides the franchisee with a standard package of products, management services, and systems. With
this bigger investment, you get more control over the final product in the new market. But it also
comes with the risk that the franchisee can ruin and cause harm to the company brand (Ghauri &
Cateora, 2015). TeaOlogy is doing franchises in their current market Norway, so it could be a possible
market entry strategy for them.

7. SWOT Analysis (Viktor)

We have conducted a SWOT analysis to present the company’s strengths, weaknesses, opportunities,
and threats. It is mainly to sum up and present everything from the previous analysis.

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Strengths:
Strong brand identity:
If we look at the internal strengths of TeaOlogy, we can see that they have a very strong brand identity
in their current market. With its nine different locations in Norway, they are very well-known and
established.
Product differentiation:
A strength of TeaOlogy is its ability to offer innovative products. Mixing and combining old
traditional herbal tea with new flavors, products, mixings, and fusions to keep offering their customers
innovative and creative products is a strength for the company. Themed events and workshops to
foster customer experience are also something that sets TeaOlogy apart from other companies.
TeaOlogy always tries to keep the company updated and follow new trends. Being aware and able to
adapt to new social trends for their customers is a strength that benefits the company.
Experience in franchising:
The company has experience in opening new locations in Norway with the method of franchising.
That is seen as an internal strength in the perspective of entering new markets.

Weaknesses:
Single product line:
A weakness with TeaOlogy is that they almost only offer a single product line, which is bubble Tea.
That can be seen as a weakness compared to companies that offer a lot more than just bubble Tea.

No experience in expanding to a new market:

Another internal weakness, from a new market entry perspective, is that the company has no
experience in expanding to other countries, as well as not have a lot of knowledge about Sweden and
its market, as they stated in the interview.

Opportunities:
Consumer preferences and trends:
An opportunity for TeaOlogy is changing consumer preferences and trends that favor TeaOlogy.
Increased demand and consumption of TeaOlogy’s products would be a great opportunity for the
company.
Partnerships/collaborations:
If the company were to do partnerships or collaborations with other companies and brands, it would
be a great opportunity for TeaOlogy. For TeaOlogy to have beneficial co-operation to increase their
product-offering would be a great opportunity.

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Threats:
Current competitors & new entrants:
Possible threats for TeaOlogy are of course the current competitors trying to compete for the
customers, such as CoCo Fresh Tea & Juice, Machi Machi Boba Tea House, and Chatime. Also, new
entrants to the market that try to find ways to steal market shares and customers are a possible threat.
Substitutes:
Substitutes for the products that TeaOlogy offers are also a threat.
Supply chain:
Challenges and problems with transport and import from their suppliers that hinder TeaOlogy’s
business are always a threat to the company.
Consumer preferences and trends:
In the same way that customer preferences and trends are an opportunity, it can also be a threat to the
company. If the consumer habits and trends result in a decreased demand for the products that
TeaOlogy offers.

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CONCLUSION (Viktor+Fanni)

TeaOlogy has established a strong brand identity and customer loyalty in Oslo's innovative beverage
market. The focus is on creating an immersive experience for Gen Z customers with unique activities
and store layouts. With its eight locations, TeaOlogy stands out due to its fusion of traditional bubble
teas with Vietnamese herbal tea culture, offering a unique blend of flavors and toppings. Compared to
competitors, TeaOlogy's inclusion of Korean shaved ice desserts and corndogs provides a diverse
menu, setting it apart from other bubble tea shops. TeaOlogy caters to a niche market of young
customers, particularly Gen Z, who seek unique and dynamic experiences. Through engaging
activities, social media interactions, and unique offerings, TeaOlogy maintains strong customer
loyalty.

Research indicates various local and international competitors, such as CoCo Fresh Tea & Juice,
Machi Machi Boba Tea House, and Chatime. These international chains offer a range of bubble tea
and tea-based beverages along with some desserts and snacks, but because of its fusion cuisine,
TeaOlogy targets a niche that is currently unmatched in the market, providing a unique blend of
flavors and offerings that cater to an unexplored segment of consumers.

Since the cultural differences and psychic distance are low between Sweden and Norway. We believe
that TeaOlogy can continue the marketing strategy they had in Norway and implement it in Sweden
without any significant changes. In some of TeaOlogy’s locations, they have started a cooperation
with a local bakery, and can now offer pastries, cakes, sandwiches etc. That could be a good
marketing strategy to execute in Sweden as well, to cooperate with a famous Swedish bakery chain
for example.

Looking at the outer and inner environment of TeaOlogy, we believe that they can gain market shares
in Sweden. We think that expanding to Sweden would be a good fit for TeaOlogy’s business.
TeaOlogy offers differentiated products and customer experience. That is how TeaOlogy should
position itself and communicate its brand on the new market, that they are offering unique and
innovative quality in both its products and customer experience.

Among the four different market entry strategies we stated were a good fit for TeaOlogy, we strongly
believe that Franchising is the best-suited strategy for TeaOlogy when entering Sweden. The company
stated that they have very little information and knowledge about the Swedish market. With
franchising, the franchisee contributes with previous experience on the market when your company

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lacks it. Also, franchising is a very cheap strategy compared to others. Which is good for a company
like TeaOlogy that is considered small.

RECOMMENDATIONS (Fanni)

Based on our research, TeaOlogy, the Norwegian Bubble Tea Company, should proceed with
expanding its operations into Sweden. Our recommendation for them is to understand the local
preferences and purchasing behavior better by surveying their potential customers. Then, to resonate
with Swedish tastes, TeaOlogy should consider customizing its menu by introducing new flavors
while retaining its core values. They shall stick to their innovative approach and emphasize their
achievements in the field of bubble tea innovations, while continuously coming up with new options
like sugar-free, vegan, and gluten-free alternatives that appeal to a wider customer base.

For a strategic market entry, TeaOlogy should open a flagship store in Stockholm initially, shifting
focus from the rural expansion strategies used in Norway. Subsequently, gradual expansion across
multiple locations can be considered. A robust marketing campaign is essential in the early stages to
generate buzz and brand awareness. Sustained promotional activities, discounts, regular tastings, and
organizing engaging events should be part of the marketing strategy.

As part of its growth plans, TeaOlogy should explore its franchising and licensing opportunities.
Additionally, partnerships with local grocery stores or chains can facilitate the distribution of
pre-packaged products. Establishing an e-commerce platform can further enhance convenience and
accessibility for customers, contributing to TeaOlogy's success in the Swedish market.

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