Menu Close
  • Author
  • Abstract
  • Table Of Contents
  • Citations
Latest posts by Jonathan Kush (see all)

This report focussed on the mode of entry that multinational food group company Parmalat would use to enter a specific country of choice for the purposes of this report. The chosen foreign host country of choice is the United Arab Emirates (UAE). After a thorough situation analysis analysing both the macro and micro environment of the UAE, the report examined all the the available market entry modes foreign firms use to enter international markets such as distribution, subsidiary, licensing, or joint venture. It was seen that while there are many options of entry available to international firms, the ideal choice for Parmalat entry into the UAE would be licensed production. This was justified on grounds of perishable characteristics of dairy products, the relatively small market of dairy products in the UAE with a low sales forecast and intense competition, making licensing an ideal strategy rather than direct investment. Recommendations included focus on online distribution channels upon entry due to the impact of covid-19.

HARVARD
Citation Here

APA
Citation Here

MLA
Citation Here

CHICAGO
Citation Here

Home country company expansion into foreign host country case study


 

Assignment question (2000w)

Please choose a Fast-Moving Consumer Goods (FMCG) company and their product (e.g., Crisps, Energy Drinks, Cereal Bars) operating in their home country where they are headquartered (e.g., England) of your choice, which is considering international expansion into foreign Host country (e.g., Netherlands) in near future. You need to provide insights to chief marketing officer and senior management on the environment of this foreign market. This will serve as the basis for them to have informed discussion and adopt the most suitable strategy to enter this foreign market. 

Recommended Structure:
1. Introduction
2. Situation Analysis (30 marks). A combination of 
  2.1 Macro-environment (e.g., PESTEL analysis/ Sociocultural environment)
  2.2 Micro environment (Micro-environment analysis (Internal Analysis) (customers, competitors) 
3. Market entry strategy (20 marks) 
Discuss briefly the available market entry modes such as distribution, Subsidiary, licensing, and joint venture. And justify the chosen entry mode for the selected company/product in the host country
4. Global Marketing strategy Implementation (30 marks)
Discuss the decisions surrounding the 4P’s in international marketing mix. In particular, factors that could influence the products degree of standardization to adaptation (e.g., packaging, pricing, promotion, and distribution) in comparison to the home country 
5. Recommendation for further global expansion (20 marks)
Conclude your report with recommendations for the further expansion of the product globally
6. Reference list
Module: International marketing
Assignment type: Report
Word count: 2000 words, excluding tables, figures 

 

1.0 INTRODUCTION


This report focusses on the mode of entry that multinational food group company Parmalat would use to enter a specific country of choice for the purposes of this report. The chosen foreign host country of choice is the United Arab Emirates (UAE). In the following section sections, the author will first undertake a thorough situation analysis analysing both the macro and micro environment of the UAE, including a brief discussion of country’s relevant historical developments, as well as its current business environment, including a SWOT analysis of the UAE in order to ascertain its strengths, weaknesses, as well as the opportunities in the dairy sector and threats that Parmalat needs to be aware of if its to enter the foreign host country successfully.

Once an international firm has chosen which foreign market to enter, the next logical step is to assess the most appropriate market entry. Choosing the most appropriate market entry and development strategy is one of the most difficult decisions for international ventureS. However, when it comes to the choice of an appropriate entry mode, there are four generic methods firms can use to gain a presence in any international market. The entry options that are available to a firm are exporting, joint venture, direct investment and licensing (Hollensen 2011; Agarwal and Ramaswami 1992; Forgren 2002; Doole and Lowe 2004; 2005; 2008; Brown et al 2003; Chung and Enderwick 2001; Johanson and Vahlne 1992). 

The report will examine all the the available market entry modes Parmalat can use to enter the UAE international market and justify the entry choice before making recommendations that can help the company make a successful market entry.

Company profile: Parmalat is a multinational food group controlled by French firm Lactalis Group, the world’s largest dairy company in the world, after overtaking Nestlé in 2020 to become the biggest diary company in the world (see table 1). It specialises in the manufacture, production and distribution of milk, dairy products, fruit beverages and other essential foods across more than 36 countries spanning 6 continents and 93 production sites. It currently has a direct market presence in 24 countries and an indirect presence (licensing) in another 12 countries. Its product portfolio includes famous global brands such as Santal, Zymil, and Vaalia as well as numerous local brands spread across 34 countries in which it operates. Group revenues for the year ending 2020 was estimated $23billion, with Parmalat contributing $8billion (Parmalat 2020; Lactalis Annual Report 2020).

Already a Subcriber?

Forgotten your password? Click Here

Not a Subcriber?

GET UNLIMITED ACCESS

TO ALL OUR FREE SAMPLES

FOR
FREE

OR

OR

PURCHASE THIS PDF

PRICE: 19.88 19.88

0% OFF

SAVE 0.00

Services We are Offering

We are more than a free study and revision tool.
We also provide on demand research and custom writing services.


error: Copying this content is in breach of our Terms and conditions.

Basic

Annual pass for 12 months​

Access to free sample essays
24/7 help from our expert writers & tutors
Access To premium strategy case studies
Free writing help for essays/reports
Extra writing help upto 2000 words free
Access to exam preparation study guides

£0

Premium

***Paid annually at £359.88

Access to free sample essays
24/7 help from our expert writers & tutors
Access To premium strategy case studies
Free writing help for essays/reports (5000 Words Free)
Extra writing help upto 2000 words free
Access to exam preparation study guides

£29.99

Popular

Standard

***Paid annually at £119.88

Access to free sample essays
24/7 help from our expert writers & tutors
Access To premium strategy case studies
Free writing help for essays/reports (2500 Words Free)
Extra writing help upto 2000 words free
Access to exam preparation study guides

£19.9£9.99

Premium

***Paid annually at £359.88

Access to free sample essays
24/7 help from our expert writers & tutors
Access To premium strategy case studies
Free writing help for essays/reports (5000 Words Free)
Extra writing help upto 2000 words free
Access to exam preparation study guides

£29.99