International Strategy for Buka Bakery

Running head: INTERNATIONAL STRATEGY
BUKA BAKERY
International
Strategy
10/2/2019

INTERNATIONAL STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
Part 1..........................................................................................................................................2
Market Analysis.....................................................................................................................2
Macros Aspects of USA.........................................................................................................3
Micro Factors.........................................................................................................................5
Part 2..........................................................................................................................................6
Overview of Grupo Bimbo.....................................................................................................6
International Business Activity..............................................................................................7
Market Entry......................................................................................................................7
Competitive Strategy..............................................................................................................8
Marketing Mix.......................................................................................................................8
Part 3........................................................................................................................................10
International Market Challenger..........................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

INTERNATIONAL STRATEGY 2
Introduction
Expanding business at an international level and designing marketing strategies supports
business in different ways. The first way is that international expansion and marketing
enhance the effectiveness of the product. As the business grows and leads, it becomes more
effective at offering superior services and products. Another feature of international
expansion and international marketing strategy is that it support in establishing a stronger
competitive advantage for the business in the market (Rothaermel, 2013). Several businesses
do not deal with the challenges while operating business in the local market. If the business
does not experience challenges in the local market, then it is an opportunity to enhance its
competitive advantage and take entry into the international market. Competing at
international levels enables customers worldwide to be informed about the services and
products offered by the business (Shenkar, Luo and Chi, 2014). The aim of this study is to
discuss the importance of expanding business at the international level and the way
businesses could do so in order to avail of the benefits of international expansion. The report
is presenting the analysis of different macro and micro factors that are important to consider
while taking entry into the foreign market that is the United States. This report is also being
presented to discuss the importance of marketing strategies and entry strategies that are used
by the bakery company in the US. In the end, the paper is presenting some of the
international market challenges for the company and recommendations for how these could
be overcome.

INTERNATIONAL STRATEGY 3
Part 1
Market Analysis
The global bakery market is anticipated to experience high growth in the coming eight years
due to increasing awareness of the vigorous, organic, and natural baked products with the
augmented intake of bread in the US, Brazil, China, and Mexico. The availability of the high
amount of raw materials such as starch, dried fruit, flour, gluten, preservatives, vitamins,
emulsifiers, sugar, meat, flavorings, food acids, and additives will drive the growth of the
industry (Global industry analysts, 2019).
The market of the United States is also experiencing the trend of declining demand for baked
products as customers are getting attracted to high fiber, low-carb, and gluten-free options.
Customers are gradually replacing the baked natural, convenience, and healthy options and
customers are substituting backed products with fruit bars, yogurt, and nuts (Grand view
research, 2014). But, for celebrating special occasions, Americans love to intake the
traditional bakery products such as Pie- a hot milk sponge filled with pastry cream and
Boston Cream which are being offered in the market since the mid-1850s. The bakery
industry of the US is one of the vast businesses which make around 2.1% of the country's
GDP as per the American Baker’s Association (Hyslop, 2018).
Macros Aspects of USA
Political - The USA is considered as one of the huge democracy in the world. The nation has
a steady political environment. The country allows several businesses to operate a business in
the country. In fact, the country maintains strong trade relationships with the government of a
different country like the EU, which allows international companies of the countries to
expand operations. However, the government has implemented several policies for avoiding
misconduct with customers or laws. For example, the US Department of Agriculture has