L B Spices Trading Case Study
Company Background
L B Spices Trading (Private) Limited founded in 1930 as a cinnamon buying and selling shop, now produces excellent quality spices mainly cinnamon, garcinia, nutmeg, coffee, ginger, aricanut, cloves and pepper from Sri Lanka. LBS also produce essential oils such as cinnamon bark oil, and leaf oil through distillation process. LBS’s current market includes South America, Europe, Japan, USA, Singapore and Malaysia.
Opportunity for ‘Going International’
LBS’s Mission and Vision itself is to export quality spices from Sri Lanka to other countries to increase economic situation of the producers by earning and to earn foreign exchange for the country. Moreover, LBS’s revenue is only from the export activities to the above said countries, …show more content…
LBS clearly knows what is cross boarder business is and it pros and cons as they are a seasoned business in spices export industry. However, when LBS enter in UAE market they should clearly understand the rules and regulations of the country, transportation mode, if there is any import duty in the target market, characteristics of the market, total turnover of the market, at what profit ratio the industry operates, how often the stock turnover happens and the duration of trade credit from the industry.
Introduce the Key Considerations for Market Entrance (Risk, Motivation & Control)
UAE imported $112m spices in 2014 [2] which has potential to grow 3% annually as the import growth rate of UAE. Currently UAE imports 57% of the spices from China, 23% from India and rest is from many other countries including Sri Lanka. LBS should target to grab its targeted market share from the India’s existing market share as Indian spices are expensive than Sri Lankan spices also LBS should use the natural pesticide use to gain USP in UAE market. LBS should understand the fact that currently UAE is importing only 0.06% from Sri Lanka which is valued just …show more content…
Spices traders from Deira (Dubai) such as Al-Rabiah Trading Co.L.L.C, Mellow Trading L.L.C, Genuine international General Trading Agency L.L.C or Al Saiee Spices Trading L.L.C and A R H Spices Trading LLC, which are from Sharjah Emirate can be contacted and they would market LBS’s spices in their name in UAE which would make the entry faster with lowest possible risk as the payment can be ensured as LBS is dealing with less number of customers. Moreover, LBS does not lose the focus from the production and other exporting activities as
L B Spices Trading (Private) Limited founded in 1930 as a cinnamon buying and selling shop, now produces excellent quality spices mainly cinnamon, garcinia, nutmeg, coffee, ginger, aricanut, cloves and pepper from Sri Lanka. LBS also produce essential oils such as cinnamon bark oil, and leaf oil through distillation process. LBS’s current market includes South America, Europe, Japan, USA, Singapore and Malaysia.
Opportunity for ‘Going International’
LBS’s Mission and Vision itself is to export quality spices from Sri Lanka to other countries to increase economic situation of the producers by earning and to earn foreign exchange for the country. Moreover, LBS’s revenue is only from the export activities to the above said countries, …show more content…
LBS clearly knows what is cross boarder business is and it pros and cons as they are a seasoned business in spices export industry. However, when LBS enter in UAE market they should clearly understand the rules and regulations of the country, transportation mode, if there is any import duty in the target market, characteristics of the market, total turnover of the market, at what profit ratio the industry operates, how often the stock turnover happens and the duration of trade credit from the industry.
Introduce the Key Considerations for Market Entrance (Risk, Motivation & Control)
UAE imported $112m spices in 2014 [2] which has potential to grow 3% annually as the import growth rate of UAE. Currently UAE imports 57% of the spices from China, 23% from India and rest is from many other countries including Sri Lanka. LBS should target to grab its targeted market share from the India’s existing market share as Indian spices are expensive than Sri Lankan spices also LBS should use the natural pesticide use to gain USP in UAE market. LBS should understand the fact that currently UAE is importing only 0.06% from Sri Lanka which is valued just …show more content…
Spices traders from Deira (Dubai) such as Al-Rabiah Trading Co.L.L.C, Mellow Trading L.L.C, Genuine international General Trading Agency L.L.C or Al Saiee Spices Trading L.L.C and A R H Spices Trading LLC, which are from Sharjah Emirate can be contacted and they would market LBS’s spices in their name in UAE which would make the entry faster with lowest possible risk as the payment can be ensured as LBS is dealing with less number of customers. Moreover, LBS does not lose the focus from the production and other exporting activities as