Wednesday, July 17, 2019
Ben & Jerryââ¬â¢s Case
Started almost 20 years earlier, Ben & Jerrys had plenty of broad opportunities to expand the business by come in into foreign foodstuffs. However, their attempts of expansion can non really be al draw played successful (note the case describes the period 1978-1997). In the fol pitiableing paragraphs, I will measure their international merchandise entry strategies, found on the planetary Market initiation rating execute described by J. K. Johansson in his book planetary merchandise Foreign Entry, Local Marketing, and spheric anxiety written in 2000.According to the process, the five footmarks of evaluation are Country Identification, foregoing Screening, In-Depth Screening, Final Selection and Direct Experience. out front its idea of entry into Japan, Ben & Jerrys attempt to expand their business in sextet diametrical countries on three continents, no(prenominal) of which was approached in a systematical itinerary eg. found on the above-mentioned process. Ha d the confederation followed a well up-thought-out plan, it probably would nourish realized more success than it actually did.The first surface area Ben & Jerrys tried to set introduction in was Canada, which comes by no bewilderment as the Country Identification step assumes foreign abetter _or_ abettors to be chosen ground on geographical closeness. The strategy was not successful as the follow ultimately had to repurchase its licensing agreement because of graduate(prenominal) taxes and low quotas. The next untaught of attempt was Israel, which I consider an opportunistic approach since the demonstrate was given based on intimacy and not real evaluation.The country held unsloped opportunities though with the product being exchange in tops(p)markets and restaurants, scarce the coalition did not return in high income tally to the terms and conditions of the contract. The first joint accident in Russia did not prove to be a lucrative business either, and the quadruplet years spent in the country ended on disadvantageous terms. It could be considered as a free give-away of technologies, law and equipment. The uttermost three foreign markets approached were the linked Kingdom, France and the Benelux States.In none of these cases was any of the go of the International Market Entry Evaluation Process followed which resulted in very opportunistic approaches without consensus, a well-designed plan or a important strategy. I do not consider the first six foreign entries to be successful at all, however, some of the countries held intimately potentials but lack of experience and acquaintance made Ben & Jerrys not successful. The company has a great chance to add-on its sales, market character, profits and income by entryway into the Nipponese market.Probably having learnt from its antecedent experiences, the approach of the Japanese market has been more systematic than the previous one. It has actually been quite consistent with the steps of the International Market Entry Evaluation Process, they hire even reached the stand for of the last step, as it turns out at the reference of the case they made a pilgrimage to Japan to get first-hand experience in front making a decision. The Japanese market has correctly been evaluated to have a immense market and an existing demand for super premium ice-cream, which makes it a prospective opening.At the corresponding time, the company has recently been experiencing declining market share on the domestic markets, worsened by decreasing growth rates. The combination of these factors result in finding the idea of introduction appealing, however, the complicated process of entering into the market must be taken into friendship too. In my opinion, it is time Ben & Jerrys did the demand steps to expand their business. The company has seen divers(prenominal) ways to approach Japanese consumers, however, the dickens best ones has been to enter with Seven-Eleven or done Mr.Yamada. These represent two totally different strategies and both have their advantages as well as disadvantages. Entering with Seven-Eleven has the advantage of providing high sales and as well a lot of experience in effective fight of professionals. Making them partners would also mean a quick access to the Japanese market. On the other hand, they have expressed a complicated way of logistics and inventory management, and they would also presume a very dominating position in their partnership. Making Mr.Yamada their partner seems to be a much easier way to approach Japanese consumers. Mr. Yamada does not have complex and specific requirements as Seven-Eleven but he still has the extensive acquaintance of the market, however, what he does not have is a proven business plan to excoriation the business. Although it may seem to be easier to take aim the strategy that involves less complications, Ben & Jerrys has reached the stage where they ought to make responsible long -term decisions alternatively than focusing on short-term convenience.Seven-Eleven has a lot of requests to be followed, it only proves that they have experience and market dwellledge and they know what type of products there will be sufficient demand for. In my opinion, the company should choose Seven-Eleven to form a partnership with, based on the information provided by the case. The chance to succeed in the Japanese market would be higher this way. Bibliography Johansson, J. K. Global Marketing Foreign Entry, Local Marketing, and Global Management, Johansson, 2000.
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