The approach towards the Chinese market by Levendary Cafe

The approach towards the Chinese market by Levendary Cafe can be described as a foreign and opportunistic approach. The cafe entered the Chinese market with its pre-existing market strategies in order to control its brand image and financial business reporting practices. However, this method was proven to be problematic due to several reasons, and the most crucial of them was their inexperience in the Chinese market. In this regard, the new CEO of Levendary Cafe, Mia Foster, decided to use Louis Chen, who has relevant experience in the Chinese market. It was a tradeoff as it was somehow responsible for not letting Levendary cafe have total control over its operations in the Chinese market (Kalafatides, 2016). However, the necessity of an experienced expert in the Chinese market stood against it. However, Chen’s decisions were not correlated with the overall market vision of Levendary Cafe; it posed some problems and resulted in some conflicts with the fundamental aspect of the company. In this regard, although Chen is a talented individual, the problem was he was well versed with the culture of the Levendary Cafe. It proves that the management team of the cafe somehow overlooked these gaps. In this regard, it is essential to understand other factors regarding the business in order to get a better insight into the failure of Levendary Cafe in the Chinese market. In this regard, the first factor is the time of the entry of Levendary Cafe in China. At that time, China had a population of around 1.4 billion(Liu et al., 2019). China had a total GDP growth rate of 14.5%. In the last ten years span (Koondhar et al., 2020). Herein, the GDP is mentioned as it plays a crucial role while making the decision whether a country can be a good business place or not. In this regard, the Chinese market was both rich in terms of the population and the GDP standard. 

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