True Fruits: A Juiced up International Strategy - Case Study Review

Running head: INTERNATIONAL BUSINESS STRATEGY
International Business Strategy
Name of the Student
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1INTERNATIONAL BUSINESS STRATEGY
Introduction
The following essay provides a detailed review of the case study “True Fruits: A Juiced
up International Strategy”. True Fruits is a leading juice firm in Germany, Switzerland and
Australia. Since its inception, the firm has been on the profitable stage. However, in the recent
time, the firm is focused on developing expansion strategy for entering international market. The
purpose of the essay is to review the existing scenario of the organization and provide suitable
solutions that support the brand to fulfill its recent business goals. This essay is conducted by
traversing different business areas of True Fruits such as the recent business challenges, the
impact of the challenges on the stakeholders and managerial implication. Alternative solution to
mitigate the impact of the identified challenges on the company has also been analyzed with
recent strategic business options. Based on the review, appropriate business solutions have been
proposed to True Fruits.
Body
Identification of the issues
The case study indicates that as the growth True Fruits’ product are growing over time in
the present market; the organization finds the scope for further expanding the business into the
new market –international market. However, the overview of juice industry mentioned in the
case study indicate that United State is one of suitable international market with growing demand
of orange juice product acquiring 52.2% of the overall market share (Heckman et al. 2010).
Nonetheless, the case indicates that regions with higher temperature, sea and the lake areas have
an increasing demand of juice products. Thereby, the concern is, the focus should not be on
United State only, the organization will also have to focus on other area such as sea and lake

2INTERNATIONAL BUSINESS STRATEGY
areas and region with higher temperature where people have thirst for drink items and concern
for health. Nonetheless, as the demands of juice products are rapidly increasing in the global
market, the competition is becoming stiff for True Fruits.
The case scenario particularly implies that there are many smoothie companies in the
global juice market because of less capital required for entry in the industry, which minimize the
switching cost for the consumers. Barfresh Food Group, Bolthouse Farms and Boost juices
are the major competitors of True Juice. According to Dimitri and Oberholtzer (2005), some
other emerging players and new entrants in the beverage and juice sector are trying to acquire a
significant share of juice market on different tastes, preferences and flavors to a region.
Nonetheless, this emerging challenge will not create much impact on True Fruits because these
emerging players are still in the dilemma of sourcing fruits from and form the brand positions
strategy.
However, Akgüngör, Barbaros and Kumral (2002) arguably motioned that some
emerging players have been trying to target a mass as well as premium consumer segments to
create a stiff competition to leading firms like True Fruit. On the other side, Wilhelmsson (2006)
mentioned that the growth of fruit juice products in the global environment is largely dependent
on the regional or geographical distribution of fruits. This fact is also found in the case study that
when expanding to a new market, the organization must have to focus o the demands of the
regions such as the regions with higher temperature and sea areas. Nevertheless, as the author
has mentioned, availability of raw materials such as fruits in the new market and mentioned
market could be a challenge for the organizations. The case study also indicates that the
organization True Fruits also faced the issue of promotion of products, as once the firm was
involved in an improper Billboard campaigns. Thereby, while entering into a new region in the

3INTERNATIONAL BUSINESS STRATEGY
internal market, the organization must have to think of its promotional content, which means the
organization need to ensure that its promotional or advertising contents do not involve any
improper elements that hurt the sentiments of public or the audience. When it comes to products,
another significant concern is the variety of juice products. Leading the market by smoothies will
not always be a suitable solution because the manufacturers of juice in the global environment
are introducing different varieties of flavors of juice with innovative packaging and product
development (Codron, Siriex and Reardon 2006). Lastly, one more challenge that True Juice
would face, is the selection of appropriate entry strategy in the proposed market.
Identification of major stakeholders and their relevance to the issues
Customers- Customers of True Fruits are also the major stakeholders who should be considered
when entering a new market. Rymon (2011) mentioned that as the demands of fruits products are
rapidly increasing, the presence of new brands the in the market are also incasing. Therefore,
customers’ bargaining may increase, where the pricing strategy in the proposed market may be
affected, which the brand might have to apply an alternative pricing strategy. However, this
growing bargaining power of customers remains ad the challenge before True Fruits’ goal of
leading the global market.
Suppliers- Suppliers are one of important stakeholders holding the ability to strongly
influence the business. If True Fruits expands in the international market, it has to find new
suppliers because it is certain that the brand cannot send its suppliers of fruits and other material
from the existing suppliers in the domestic market. Using the existing suppliers to export the
materials in the internal market may require the firm to make a hug investment. In addition to
this, if the firm targets the sea areas and regions with high temperature due to the growing