Lifeway Kefir Expand Overseas Market Feasibility Report

Lifeway Kefir: expand overseas market feasibility report

Module: MGT 3201 Global Business Strategy
Module Tutor: Dr Simon Best
Group Number: 02
Group Members:
Yiyao Dou M00323017 Xiao Han M00326999
Yue Zhou M00324174
Suili Zhu M00327268
Lingfeng Zhang M00327281

Date of Submission: 21/2/2011
Word Count: 4382
Table of Contents

1. Introduction.................................................................................. 3
2. The internal and external environment of Lifeway Kefir………….…...4 * 2.1 SWOT analysis…………………………………………………………………......4 * 2.2 PEST analysis………………………………………………….………………..…..7
3. The reasons of entering in Philippines………………………………………...10
4. Market entry modes selection……………………………………………….…..…12 * 4.1 Exporting……………………………………………………………………….........12 * 4.2 International Strategic Alliances…………………………………..……….13 * 4.3 FDI……………………………………………………………………………..……….…14
5. Conclusion .....................................................................................16
6. References..................................................................................... 17

1. Introduction
Nowadays, as an increasing of international cooperation, the global is a necessary trend and the competition from foreign firms also more and more fierce. Of course, with the higher risk and strong competition, the company will make more profits. So, based on the main trend and strong benefit, the company “Lifeway Kefir” also wants to expand into overseas market now.
The purpose of this report is to analyses the host country strategic environment and several alternative model of entering the international market to help Lifeway Kefir choose a suitable country and market entry strategy. Firstly, the report will analyze Lifeway’s internal environment by using SWOT, and external environment by the method of PEST in order to cater to external trends. Next, the report refers to the motivation for Lifeway by using four

References: Kefir is an American company which is first made yogurt and their business begins in 1986. (Lifeway.net 2011) It has 24 years of experiences of yogurt production in American “Shifts in consumer tastes away from the firm’s products” (Quickmba.com 2011) people from different places has different tastes, this could be a problem for Kefir. In addition, “Dairy products are the country 's second largest agricultural import after wheat.” (Thecattlesite.com 2008) there will be a lot of competitors in this country and a lack of oversea business experiences will be a trouble for Kefir. Resources: Now I will discuss internal and external resources that give managers information they need to choose the strategy and business mode helping Lifeway company retain competitive advantage (Hill and Jones. 2004,). Intangible resources: It is all about of the reputation of the company, the knowledge of employees gain through experience and the intellectual properties (Hill & Jones, 2004). Philippine Trade, 2010 Source: http://www.census.gov.ph/data/pressrelease/2010/tr1009tx.html Philippine Trade, 2007 Source: http://www.census.gov.ph/data/pressrelease/2010/tr1009tx.html 2. Helpman and Elhanan,(2006) Trade, FDI, and the Organization of Firms, Journal of Economic Literature, Volume 44, Number 3, September 2006 , pp. 589-630(42) 3 4. Hill, J. S. (2009). International Business: managing globalization. US: Sage. 5. Hill, L.W.Ch. & Jones, R.G. (2004). Strategic management: An integrated Approach. (6th ed.). Boston: Houghton Mifflin Company. 6. T. K. Das and Bing-Sheng Teng, (2000) A Resource-Based Theory of Strategic Alliances, Journal of Management February 2000 26: 31-61 7 8. National Statistics Office, Republic of the Philippines. (1997). EXTERNAL TRADE PERFORMANCE. [ONLINE] Available at: www.census.gov.ph [Accessed 11 December 10]. 9. SpectrumNaturale. (2010). Amazing Kefir. [Accessed 11 December 10] [ONLINE] Available at: spectrumnaturale.smilds.com 10 11. Goody Kefir. (2010). The Philippine Mangoes and Kefir, a perfect healthy combination. [Accessed 11 December 10] [ONLINE] Available at: www.goodykefir.com 12 13. QuickMBA. (1999). SWOT Analysis. [ONLINE] Available at: www.quickmba.com [Accessed 18 February 11]. 14. thecattlesite. (2000). Philippines Dairy and Products Annual 2008. [ONLINE] Available at: http://www.thecattlesite.com [Accessed 18 February 11].