• CoCo Fresh Tea & Juice – Collaborative Entry Mode into Chinese Market

Abstract

CoCo Fresh Tea & Juice invests much money in R&D and innovation and collaborates with suppliers to build high threshold of entry barriers in competitive chain store industry. CoCo Fresh Tea & Juice has around 600 chain stores in Taiwan, China, Hong Kong and United States. Now CoCo Fresh Tea & Juice plans to expand its business in Northeast Asia, Southeast Asia, the Middle East, Canada, New Zealand and Australia.

This case highlights the process of entering Chinese market, and focuses on three issues. The first issue is what kind of entry strategy CoCo Fresh Tea & Juice chooses to enter Chinese market. The second issue is what determinants affect channel selections, and how CoCo Fresh Tea & Juice builds the channels in Chinese market. The third issue focuses on how CoCo Fresh Tea & Juice engages in vertical integration.

Through the case, students will realize the issue of internationalization, and figure out the considerations of entry strategies and channel selections. Different types of vertical relations and the effect of vertical integration will be also realized.

Keywords: Entry into New Markets, joint venture representative, Channel Selection, Vertical Integration