Ágústa Hera Harðardóttir, Christian Washausen, Kerstin Fick, Michelle Won
1.
Based on what you know from the case and given that the international expansion to Asia-Pacific is agreed upon, what decisions have to be made by the company and in what order?
After analyzing the company’s external and internal environment in Taiwan, the business and mission for the particular market have to be defined. During the process Berri has to set its objectives for the market, quantify its goals and, based on this, decide on their strategy and tactical plan.
Having chosen an international expansion to Taiwan the company has to decide how it wants to position itself in the Taiwanese market. Based on this decision the target segment for the product should be chosen. The definition of the position of the product and the target segment is essential to evolve the marketing strategy for the product. This includes decisions on the product’s design, labeling and packing, its advertising and promotion.
Then Berri has to decide which strategy it wants to follow for its market entry, whether it wants to export direct or indirect from Australia to Taiwan. This is associated with the choice of their import strategy in the Taiwanese market meaning the distribution within Taiwan.
Thereafter the price driving elements of the company’s market entry have to be chosen, the company finally decides on the pricing of the product.
2.
What would be the most preferred entry mode for Berri into the region?
Berri can choose upon three entry modes: a production side in Taiwan, a direct or an indirect export strategy. Of course, each of these possibilities has advantages and disadvantages.
One possibility would be to set up a local production site. This has the advantage that Berri does not have to pay high import tariffs for its products as it can use local fruits for the production. However the existing production facilities in Australia