Expansion into international market: solutions and strategies.
The organic farming has the wind in one’s sails since several years: market and superficies growing. In Wales, an organic milk product company was created since a few years. Before, producing organic milk, this company had produced traditional milk; this willingness has chosen to be good for the health by developing the nutritional benefits. It was the beginning of a new line of conduct for the company. DAIONI is very present on the Welsh and British market. Today, DAIONI Company wants to expand into an International Market. First of all, DAIONI choose to export in the Netherland because it is a country which is in development for the consummation in organic products. Johanson and Vahlne (1997) discussed that “the lack of knowledge is an important obstacle to the development of international operations”. Therefore, this report analyzes DAIONI’s capabilities and also global and business environment of the Netherlands using appropriated frameworks.
The Country chosen
Firstly, the company has to choose a good country to expand their market, to determine their objectives and expectations. The Netherlands is an interesting market because the organic products represent only 3% of Netherlands foodstuffs market. The production can’t follow the demand to supply the shop and come up to an export’s expectation.
Lots of products know a fast-growing even if they have a weak market share. It means that the Netherlands’ market offers of interesting business opportunities in years coming.
As the local production cannot answer to the country’s demand, therefore it is necessary to complete the supply with importations.
The organic market in Netherlands is more or less new, so there are still lots of things to do. Some organic products