However since the other branches of the coffee brand has been thriving well, the overall revenue of Caffe Nero is expected to remain positive. Caffe Nero expects to grow further in the coming years through opening more number of outlets. It also expects to enter the markets of Asia. It is perceived that such strategies of growth can reduce any risk of decline in the coffee market of the western nations. Moreover venturing into emerging nation also facilitates operating in less saturated market conditions. In the western nations the economic downfall, saturated coffee market, and continuously rising competition have propelled many firms to expand their activities into other nations. The competition pressure existing in the external environment for Caffe Nero can be analyzed through Porters Five forces. The power of buyers in the retail coffee chain industry is high. This is due to the aspect that consumers can easily to switch to other brands according to their preferences. Hence in order to manage the bargaining power of buyers, Caffe Nero is required to sell its products at competitive rates. It is also essential that the company promotes itself more through advertisements and differentiate its products from existing brands in the market to achieve competitive advantages. Effects of current downturn on Caffe Nero.
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