Eac Nutrition
EAC NUTRITION: REGIONAL EXPANSION STRATEGY
Table of contents
Introduction ..2
History of EAC .3
EAC Nutrition 3
Competitors & Market .6
Target markets 7
Case questions
1. What are the economics of the infant nutrition industry? What capabilities do firm need to succeed in this industry? ..8
2. Evaluate the attractiveness of the expansion 8
3. How might competitors respond to the adoption of the different expansion alternatives by EAC? How does this affect EAC 's decision? 11
4. Which expansion option would you recommend to EAC? Why? What criteria did you use to evaluate these options? 16
Bibliography 17
Introduction
The Senior Management of the EAC (East Asiatic company) planned to have a meeting to discuss the growth strategy for the nutrition business. This meeting should take place in the year 2002 and was mainly deriving from the aggressive corporate restructuring started in 1997 and focusing on the core business, i.e. nutrition on the Asian market.
EAC 's marketed products (all milk powder products for infants) are:
- Dumex
- Plus
- Mamex
- Mamil It has resulted necessary to increase the consumer prices for these products, mainly due to the increase of raw material cost. This measure had weakened EAC 's position in Thailand and Malaysia, which were already quite saturated. The only competitive market seemed to be China.
The Asian market, either with the unclear economy and the sometimes not controlled competition generated a stock price which was considered to be undervalued by the management . EAC share price has actually increased, but it seemed to be more and more
Table of contents
Introduction ..2
History of EAC .3
EAC Nutrition 3
Competitors & Market .6
Target markets 7
Case questions
1. What are the economics of the infant nutrition industry? What capabilities do firm need to succeed in this industry? ..8
2. Evaluate the attractiveness of the expansion 8
3. How might competitors respond to the adoption of the different expansion alternatives by EAC? How does this affect EAC 's decision? 11
4. Which expansion option would you recommend to EAC? Why? What criteria did you use to evaluate these options? 16
Bibliography 17
Introduction
The Senior Management of the EAC (East Asiatic company) planned to have a meeting to discuss the growth strategy for the nutrition business. This meeting should take place in the year 2002 and was mainly deriving from the aggressive corporate restructuring started in 1997 and focusing on the core business, i.e. nutrition on the Asian market.
EAC 's marketed products (all milk powder products for infants) are:
- Dumex
- Plus
- Mamex
- Mamil It has resulted necessary to increase the consumer prices for these products, mainly due to the increase of raw material cost. This measure had weakened EAC 's position in Thailand and Malaysia, which were already quite saturated. The only competitive market seemed to be China.
The Asian market, either with the unclear economy and the sometimes not controlled competition generated a stock price which was considered to be undervalued by the management . EAC share price has actually increased, but it seemed to be more and more
Bibliography: PRINTED RESOURCES AAVV, Management Grundwissen, Compact Verlag, Munich, 1992 Hans Wilfried Grafers- Axel Schlich, Schnellkurs Export, Lexika Verlag, Wuerzburg, 2002 Charles W Reinhard Huenerberg, Internationales Marketing, Verlag Moderne Industrie, Landsberg/Lech, 1994 Jim Leong-Michele Tan "EAC Nutrition: Regional expansion Strategy" University of Virginia, Darden School foundation, Charlottesville, 2002 Studio Legale Birindelli & Associati, Guida Informativa sulla Cina, Centro estero Camere di Commercio Lombarde, Milano, 2005 Steve Morris- Graham Willocks, Erfolgsfaktor Kundenorientierung, Falken Verlag, Niedernhausen, 1998 Helen Winter- Thomas Rommel, La ricchezza delle nazioni- Guida e commento, Garzanti, Milano, 2001 INTERNET RESOURCES