Mavis Bank Coffee Factory (M.B.C.) processes and selects premium quality coffee beans from Blue Mountain and labels them as certified Blue Mountain Coffee. Mavis Bank Coffee Factory uses a home replication strategy to markets its products globally. M.B.C. features its product with originality; therefore, nothing should be changed in terms of production and localization (in this case, Americanization). In this strategy, the international business acts as a brand that no other place can replicate. People like M.B.C. Ltd products just the way they are and wouldn’t want them modified any other way. The products were initially designed for the domestic customer; it then turned out to be a famous and luxurious commodity people from all over the world enjoy. M.B.C. currently exports approximately 1 million pounds of green bean coffee out of the 1.4 million pounds collected from farmers per year, with U.S. accounting for 20% of the exports.
In the US, Mavis Bank coffee is marketed by independent distributors, retailers and wholesalers who buy coffee directly from them. These entrepreneurs are mostly U.S. individual citizens or companies who operate independently from the M.B.C. These include, but not limited to: Jablue Pacific, a wholesale and trading business based in Oregon and deals with coffee and wine; J. Martinez & Company traders in coffee; K.M.D. Distribution Company distributors/wholesalers deals with coffee, cocoa, dairy products, and ginger; Coffee Pacifica, Inc, a worldwide distributor and marketer based in Berkeley, California; and Blue Mountain Coffee Inc. a holder of sole licensing agreement with the Coffee Board allows it to trade Blue Mountain coffee products in North America.
Advantages of using Home replication strategy
There is minimal pressure on the M.B.C.’s managers in the marketing of products in the U.S. market since it is independent from the home country. Secondly, managers in M.B.C. Ltd do not have to actively participate in the distribution as most of the tasks fall on foreign distributors, franchisees, licensees etc. and thus they are able to concentrate more on the production of quality coffee. Lastly, the distributors in each country can package or do value addition in regard to their country’s tastes and preferences.
Competitive advantage of M.B.C. Ltd
Competitive advantage in international business can be described in terms of internal potential and external relationships a firm has. This guides the firm in adopting a certain entry mode and international strategy. M.B.C. is the oldest and largest coffee processor of the Blue Mountain coffee with quality coffee which is rich, sweet and well balanced acidity and is known the world over.
Differentiation
Mavis Bank Coffee Ltd has designed its coffee products, both Green and roasted and its operations to become and remain a unique coffee producer in the Central American region and global market under the Jablum label and M.B.C.F. trademark which guarantees 100% Jamaican Blue Mountain coffee. Unique coffee quality and taste enabled by the region’s geographic and climatic conditions that combine to produce coffee not produced anywhere else in the world. By producing coffee that is unique in quality and taste, it is difficult for competitors to imitate their products especially the green coffee. Shipping of the company’s coffee is by the famous and unique wooden barrels and the special 60 Kg vacuum bags for roasted coffee. M.B.C. Ltd has also differentiated its products by finding and dominating a niche in the U.S.
Focus
Mavis Bank Coffee uses the focus advantage in adopting its international business strategy. This way, M.B.C. becomes part of the ever complex coffee industry. The company uses this strategy with its suppliers of coffee in the blue mountain parishes for them to produce quality coffee and competitors in the U.S. market such as the Blue Mountain Cooperative Society. This way the company shares information, skills and technology with coffee industry competitors, suppliers and the farmers to enhance its competitiveness.
A complex web of interdependences is formed. M.B.C. Ltd, being the oldest, largest and most modern coffee processor in the region, has been able to maintain these interrelationships due to assets it possesses and the resources it exchanges with the partners.
Works cited
Global B2B Market Place. 2009. Web.
Mavis Bank Coffee Factory 2009. Web.