International Market Entry and Development

INTERNATIONAL MARKET ENTRY AND DEVELOPMENT Name of student: Date: INTERNATIONAL MARKET ENTRY AND DEVELOPMENT Introduction International market entry decisions are multifarious and vibrant which consists of a range of deviating levels of participation in the target foreign markets. This focuses on methods of entry which preludes to the mode of market penetration adapted by each firm among a range of competitors. Therefore the choice of methods of market entry wholly depends on the overall company`s business strategies and the mode of investment present to achieve the set objectives. In this essay, the international market entry and development strategies of Fructal`s Juice Company will be discussed among a range of competitors from countries such as Italy, Austria, Portugal, Spain and Hungary. Competitive rivalry ITALY Fructal Juice maker in Italy is being presented with an offer by Pivovarna Lasko Group of $ 70 million for 93.7 % share in the juice factory according to the report. The other rival Serbian beverage maker Nectar came up as a possible bidder for Fructal. This will improve the total value of Fructal at EUR 50.2 million (Republic of Slovenia; Government communicative Office, 2011). Italy`s Pivovarna Lasko group adapts the strategy of acquisition through foreign direct investment hence giving it an upfront against its rivals. Sound capital base and wide market for the Juice brands inclusive of the strong brand name are some of the factors that promote its penetration into foreign markets. The products are well diversified as to give them an upper hand in the food and beverages industry. The product demand is high in Italy and the EU member countries are high attributed to the fact that its contribution to the overall GDP is on the increase. Its suitability in the building of the economy is highly considered as to the reason of many firms competing for its possession according to the Government communicative office of the republic of Slovenia. HUNGARY Fructal Juice maker in Hungary was spoiled by a cold rainy weather in the month of May. Fungus infestation was on the increase as a result of humid cool weather which reduced the amount of yield. Implying the product will be low. The competition among the main rivals will be leveled out considering that all the firms are having such the same type of environment. However the industry is still denominated to pick up their foams (Hungary Fresh Deciduous Fruit Annual Report, 2005). Hungary Markets for its juice are concentrated in Germany, United States and Austria. The importation from US amounts to USD 8-14 million from Hungary`s concentrate on annual basis. US importation of the Juice product can be attributed to the product`s suitability in the contribution to the overall demand in the economy. Many citizens in Hungary have ventured in growing of fruits which are meant for production of juice and other food supplements. Various juice products can be produced from Fructal Juice Company which suits the taste and preferences of the citizens. SPAIN Fructal juice maker in Spain has invested quite a lot in the fruit juice industry. Spain imports most of its Fructal juice products from Slovenia as opposed to local manufacturing. The country stocks a variety of Fructal products such as Black currant Nectar, Apricot Apple, Peach Apple, Lemon Syrup, Strawberry, Blueberry and Fructal premium peach juice. This enables the country to serve its diverse market effectively basing on the flavors. The nation`s international market ...