International Business Mars & Ferrero Analysis
Internationalisation Strategies of the Two Giants: Mars inc. and Ferrero group
Lim Wei Jian
BUSINESS MANAGEMENT
INTERNATIONAL BUSINESS
27/1/13
Introduction
Every business in this world aims to be successful. Success in business can be achieved by two means i.e. through profitable operations of the existing business or through the expansion of the business within or beyond the boundaries.
Internationalisation can be defined as the process of getting involved in “beyond the border” activities or operations of business (Blomstermo and Sharma, 2003). It can be trading the products and services among nations, manufacturing the products in other countries or starting joint ventures in host countries etc. Internationalisation is a risky process for every corporation. It needs complete market knowledge of the countries in which the company aims to expand its operations and a thorough study of the cultures’ of their people as well. It also needs a bulk quantity of business resources (e.g. financial resources, human resources, technological resources etc.). (Thompson & Martin, 2010)
This research paper aims to focus on the “internationalisation strategies” of the two world- leading food manufacturers i.e. MARS and FERRERO. These two giant corporations are widely known for their confectionary products (especially chocolate products). Mars operates in more than 73 countries while Ferrero operates in 36 countries. (Scott & Riggs, 2012)
INTERNATIONALIZATION: SUCCESS FACTORS OF MARS AND FERRERO
Mars and Ferrero are not new to internationalisation. They have been operating globally since years and with great success. This section of the research highlights the most important factors that lead these multinationals towards success. (Rogers, 2009)
Common success factors Mars and Ferrero share two common success factors in terms of internationalisation i.e. product quality and innovation. These two
Lim Wei Jian
BUSINESS MANAGEMENT
INTERNATIONAL BUSINESS
27/1/13
Introduction
Every business in this world aims to be successful. Success in business can be achieved by two means i.e. through profitable operations of the existing business or through the expansion of the business within or beyond the boundaries.
Internationalisation can be defined as the process of getting involved in “beyond the border” activities or operations of business (Blomstermo and Sharma, 2003). It can be trading the products and services among nations, manufacturing the products in other countries or starting joint ventures in host countries etc. Internationalisation is a risky process for every corporation. It needs complete market knowledge of the countries in which the company aims to expand its operations and a thorough study of the cultures’ of their people as well. It also needs a bulk quantity of business resources (e.g. financial resources, human resources, technological resources etc.). (Thompson & Martin, 2010)
This research paper aims to focus on the “internationalisation strategies” of the two world- leading food manufacturers i.e. MARS and FERRERO. These two giant corporations are widely known for their confectionary products (especially chocolate products). Mars operates in more than 73 countries while Ferrero operates in 36 countries. (Scott & Riggs, 2012)
INTERNATIONALIZATION: SUCCESS FACTORS OF MARS AND FERRERO
Mars and Ferrero are not new to internationalisation. They have been operating globally since years and with great success. This section of the research highlights the most important factors that lead these multinationals towards success. (Rogers, 2009)
Common success factors Mars and Ferrero share two common success factors in terms of internationalisation i.e. product quality and innovation. These two