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Lesson 5 Koots Tea Case Study

The case Koots Green Tea describe the entrepreneurship experience of Japanese-born and American trained entrepreneur Kouta Matsuda. The case describe the coffee market in USA Vs. tea market in japan. The kouta’s early entrepreneurial experience helps to negotiated with Tully’s coffee. Kouta started the first Koots Green Tea (“KGT”) store in 2003. He has just sold his chain of Tully’s Coffee Japan (330 stores in Japan) and KGT (nine stores in Japan) to a large Japanese tea conglomerate, Ito-en.
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   Running head: LESSON 5 CASE STUDIES 1 Case on: “Koots Green Tea”  Submitted by: Bikram prajapati King‟s college  International American University BUS 590: Business strategy Kirshna khanal / Giang Biscan 06, 08, 2014  LESSON 5 CASE STUDIES 2 Abstract The case Koots Green Tea describe the entrepreneurship experience of Japanese-born and American trained entrepreneur Kouta Matsuda. The case describe the coffee market in USA Vs. tea market in japan. The kouta‟s  early entrepreneurial experience helps to negotiated with Tully‟s coffee. Kouta started the first Koots Green Tea (“KGT”) store in 2003. He has just sold his chain of Tully‟s Coffee Japan (330 stores in Japan) and KGT (nine stores in Japan) to a large Jap anese tea conglomerate, Ito-en. This case try to explore the specialty of coffee and tea industry, ntra is the second most popular beverage in the world to bottled water. There are different types of tea among them green tea was promoted by kouta‟s in the various retail chain in japan. Kouta currently owns one KGT shop in Seattle and plans to open a second store nearby. Kouta must decide whether or not now is the time to take the leap and move to America to oversee store concept development, operations, and eventual expansion. The biggest challenge for him is to make awareness in the American society about importance of green tea and how market shoul be develop whether to go through merging, joint venture or through acquisition process in the USA market.  LESSON 5 CASE STUDIES 3 Kouta”s entrepreneurial experience   K  outa 37 year old entrepreneur have to compete with the Tully‟s coffee retail chain  business. Kouta represent a new breed of entrepreneurship in japan. Kouta is different from other  business man and he is extremely committed to his work. No Japanese food retail has ever made it outside of japan, no one know it how to do it. There is wide gap between the American and Japanese food culture and establishing a green tea retail shop in both countries is very tough job for kouta. Kouta wanted to open 300-400 koots shops in the USA. He had to compete with Tully‟s coffee which sold  branded coffee and related products throughout from 4,000 grocery and retail shop. An entrepreneur is a business person who is not deterred by risk. Entrepreneurs must have enough confidence to follow through with a potentially profitable plan, despite the relatively high risk. In my mind, Kouta is definitely an entrepreneur. He overcame the fact that  being entrepreneurial in Japan is very difficult, having much higher consequences for failure than the United States. At the early age of his life he is used to deliver the newspaper, used to sale computer peripheral and after graduating from high school in America, he returned to japan to study further and there he used to work as part time in Japanese restaurant. After graduating to gain experience he worked for Sanwa bank for two years. One of his college friend named jeff farris tell about the emerging food trend in USA and suggested to start coffee business in japan. He worked and settle some issue initially and finally took the leap and negotiated with tully‟s coffee a settle based chain to its first store in japan. Kouta is a model entrepreneur and a force to be reckoned with. His wise business strategy, such as placing Tully‟s in high -rise office buildings, has propelled his business career in the direction many have wished to go. His goal of bringing Japanese culture to America through Koots Green Tea has fascinated many and may have created a niche, which could far exceed Starbucks. With a timeframe and a set of goals he could very well convince Ito-en to continue to  pursue the retail green tea market. He have to work in different culture by marinating harmony  between two cultures. kouts are never satisfied on what he achieved he always prefer to take risk and need to grow. Kouta‟s is self-motivated entrepreneur and continue to expand his business in  japan and America. Kouta had succeeded in winning the into overseas exclusive licensing and franchises rights for coffee shops. Suga san and kouta Kouta enjoy reputations of integrity and  LESSON 5 CASE STUDIES 4 wisdom and visionary leadership, and both have worked for large Japanese banks. “ If you are an entrepreneur looking for funding outside you really have to develop a personal chemistry or synergy between yourself and the investor. That is most important. They do research more on coffee shop prospectus in japan. Diversification into koots green tea: Koots Green Tea is relying heavily on Kouta to provide vision and direction for the company. Kouta needs to develop a management team with the ability to support his vision of major expansion. Since foreign expansion is the ultimate goal of the company, a diverse management team with knowledge of penetrating new markets would be ideal. They more focused on niche market. He believed that simply selling more is not enough connecting customer is increasing important and the future success of company lies on personal relationship with customer. Kouta and Suga- san‟s cultural background and experiences building a major coffee chain in Japan. Katou‟s  adopted LOHAS strategy as makes people to believe that the green tea that they are providing is safer for health and lifestyle. And kouta believed that one day of Americans get familiar with the taste of quality tea they will pay $3 for a cup of tea like coffee. This is what a kout‟s vision to establish the tea market in the USA. Green tea is a part of a Japanese tea culture and most of the human resources believe that promoting green tea will make their culture alive. Japanese consumer are ready to pay premium for one cup of green tea and them does not hesitated to be in line for kout‟s tea shop.  The greatest advantage that Kouta and Koots Green Tea has going for it is its company‟s culture. The fact that Kouta‟s goal was to bring Japanese culture to America is the company‟s driving force, which needs to be the main focus. Instead of developing such an immense expansion plan Koots Green Tea needs to focus on the marketing of its company‟s culture, which is the green tea itself. Expansion of koots tea Kout‟s believed that he need to expand the business and plans to open seventh koots store in Tokyo and a second store in settle in jan 2007. The lesson learned from his past experience s that if u want to control your business u have to make minimum 50 % of share in the own name  because ito-en want him to focus on operating tully‟s coffee japan chain rather that koot‟s tea


Jul 22, 2017

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Jul 22, 2017
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