Tpresso Case Study

Introduction

TPresso is an automated tea system produced by the Swiss company Monodor. It builds on the success story of Nespresso in the coffee capsule market and now introduces a high-end tea machine that uses capsules in order to make tea.

“The aim of his current Tpresso project was to fuse high tech-capsule technology, a futuristic-looking tea set and sophisticated tea maker that sets proper water temperature for each tea, with ancient Chinese tea traditions”

PEST Analysis

Political Factors: China allows foreign businesses to enter; their politic was very stable at the time. Political stabilities and facilities can derive and facilitate foreign direct investment. There are no high trade barriers such as taxation or traffic.

Economic Factors: China is a world largest tea producer country and also a world largest recipient of foreign capital. “Tea makes up for 96.7% of the hot drinks value sales, which are $9.9 billion” . China has transformed its economic into the market-oriented that positively impact not only on China but also on the world. These economic reforms China has implemented over the past 2 decades have profoundly affected both individual initiative and entrepreneurship. The combination of central planning with market-oriented reforms were tried to implement in order to increase productivity, living standards, and technological quality but not lead to negative effect on inflation, unemployment, and budget deficits. Rapid economic development and accelerated domestic demand in China, however, offers significant opportunities for growth.

Social and Cultural Factors: China is the world largest population country, 1.34 billion people and an estimated growth rate of 0.494%. Almost 95% of the Chinese people have the habit to drink tea. They have a traditional method to do it. In the past tea was valued for its medicinal characteristics but today, in China, it is a traditional art to make it and drink it. This can be a negative side for the entrance of Tpresso, which is modern and not traditional. A positive thing on the social part is the decrease of the unemployment. The current unemployment rate in China in January 2010 is 4.3% which demonstrates that this project would help the society and in turn the economy by creating positive job opportunities. As women are getting more independent, they are now able to purchase their own items, and get a high-level live.

Technological Factors: Regarding the technological factors, there’s not much to be said since the machine is produced in Switzerland, so the Chinese market has nothing to do with it.

To sum up the PEST analyses, we can conclude that there are no big restraints for the entrance of the Tpresso. The factor that should be taken into attention is the Social Factor. As Chinese people have tea in such a traditional way, Monodor should have a good marketing