BMB Case Study: International Business Expansion and Strategy Analysis

This case study analyzes the BMB Group, a Dubai-based confectioner, and its plans for international expansion, particularly in the markets of Turkey, the United States, and India. The report begins with an executive summary and a SWOT analysis of BMB's current market position in the UAE, evaluating its strengths, weaknesses, opportunities, and threats. A PESTLE analysis is then conducted for each target country (Turkey, India, and the US), assessing the political, economic, social, technological, legal, and environmental factors influencing market entry. The study also examines food protection regulations in each country, including FDA in the US, FSSAI in India, and TFSA in Turkey, highlighting their implications for BMB's operations. Furthermore, the case study explores strategic options for market entry and expansion, including the application of the Ansoff Matrix to evaluate different growth strategies. The report concludes with recommendations for international market segments and diversification strategies, including the importance of adapting products to suit local tastes while maintaining product quality. The analysis is supported by relevant references, including studies on consumer preferences, SWOT analysis, and international market strategies.

Running Head: BMB CASE STUDY
BMB Case Study
Name of the student
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Author Note

1BMB CASE STUDY
Executive Summary
The report focus upon the case of the BMB as they are planning to expand in the international
market, particularly in the market of Turkey, US and India. As such, the report would include
a SWOT analysis to evaluate the current market of BMB in UAE. The next segment would
focus upon the PESTLE analysis of the market in Turkey, India and US. The course would
also include the analysis of the market in terms of the food protection related regulations
present in each of the country. The report would also include the strategies that should be
introduced in order to achieve the desired diversification and expansion.

2BMB CASE STUDY
Table of Contents
SWOT analysis...........................................................................................................................3
Section III...................................................................................................................................4
Section IV...................................................................................................................................6
Section V....................................................................................................................................7
References..................................................................................................................................9

3BMB CASE STUDY
SWOT analysis
Strength
 The strength of the organization lies
in its ability to come up with
chocolate on a private level that
comprised of the traditional snacks
and baklava.
 Also operated in the factory of raw
material as well as printing and
packaging.
 Concern for quality and continuous
innovation
 Product with less sugar and fat
content (Gosadi et al., 2020)
Weakness
 Frame work to maintain proper
brand image as well as the
authenticity of the product in
maintain the quality of the product
in the overseas market.
 Proper training of the employees to
accustom to the variations both in
terms of geographical as well as
cultural
Opportunities
 Growing market of the middle
eastern sweets
 Potential new market with the
increasing demand for the
confectionaries
 Potential countries selected as the
Turkey, US and India.
 Cultural and geographical as well as
linguistic proximity allowed the
Threats
 Competitive pricing is likely to
cause a threat to the brand image of
the product
 Lack of the quality of appealing to
the health conscious customers
 Lack of the familiarity with the
product in the Indian subcontinent.

4BMB CASE STUDY
organization to step into the global
market (Gürel & Tat, 2017).
Fig: SWOT analysis
Source: Created by the Author
Section III
Factors like the ones of the common language, commonality in terms of the cultural
factors, increased size of the market with a comparatively large number of population had
created a fore ground for the expansion of the business in the countries concerned. The urge
of the organization to expand in the countries where the products of the Middle East has
already gained a prominence was a crucial target for the company. Along with that, the
organization targeted the population of the expatriate Arabs and the population that exhibited
a competence for the products based on sweet had been kept in the primary goals of the
organization after it had established itself and thrived through the tough time of global
economic crisis.
Turkey US India
Political Population counts
for 75 million
319 million
population
Potential market
Lesser number of
competitors
Economical GDP per Capita
ranges for $22,721
$57,344 in terms of
the Per capita GDP
$6,586 Per capita
GDP

5BMB CASE STUDY
Social Increased affinity
towards the taste of
Baklava
Extensive Islamic
population and the
Ramadan enhances
the market (Rashid,
2017).
Lesser middle
eastern expatriate
population
Exoticism of the
good provides a
crucial ground
Taste for sweet
Huge number of
religious and
cultural festivals
Technological Advanced
technological
competence
Increased
competence in terms
of technology
Developing
competence to the
advancements in
technology
Legal It is easier to
conduct the business
Complexities in
conducting business
for a overseas
organization
Environmental Lack of authentic
raw material
Lack of authentic
raw material
Lack of authentic
raw material
Fig: PESTLE Analysis
Source: Created by the author
Considering the aforementioned analysis it can be discussed that the organization will
be able to expand in the market of India as the country has a large population of the expatriate
Middle Eastern. Along with that a large number of Muslim population has created a larger

6BMB CASE STUDY
market which is joined by the high population. Along with that the cultural scenario of the
country is marked by a series of events that would create a potential market that would
facilitate a quick expansion of BMB in the overseas market.
Section IV
According to the regulation of FDA, particularly the food protection plan as it has
been proposed in the year of 2007 takes a massive step towards protecting the consumption
of food starting from the source of the food production. As such the importance of the
framework is to prevent the contamination of food from all front. As the organization is
expanding to US, it would be important for the organization to tighten the quality of food
(Vargas & Dobbs, 2019). The FSSAI serves the similar function in India. Since BMB would
be entering the market from the middle east in order to maintain the quality and the taste of
the product it would require to import a considerable amount of the raw material from its
home market and as such it would be essential for the organization to store and import their
products following the guideline. It would also require the organization to enhance the safety
quotient of the product. It also brings under itself the milk related regulation of the year 1992,
that should be the concern of the company. TFSA in Turkey performs the same function. It
would be important for the organization to adhere to the food related regulation pertaining in
the country they are expanding. As such, the adherence would act as the first step in catering
to the framework and maintain a crucial functioning in the foreign market.
Section V
Increasing Risk

7BMB CASE STUDY
Increasing Risk Existing Product New Product
Existing Market Market Penetration
Create expansion of
the products from the
producers of
confectionaries to
create bakery product
as well as Baklava
Product
Development
Product with less
sugar and fat content
New Market Market Development
 Branding
 Reputation
invested on
the quality
good
 Product
Diversification
Diversification
Product with less
sugar and fat content
Innovation to suit
the need of the new
customer group
(Hussain et al.,
2013)
Fig: Ansoff Matrix
Source: Created by the author
1. International Market Segments
As per the strategy, the company need to focus on a limited customer segment.
As it has been noted in the case of Turkey and India, a considerable portion of

8BMB CASE STUDY
the population are aware of the Baklava and a great consumer of sweet food
products. Moreover, the market in India is rich with a huge population
following the Islamic Sect. As the population perform Ramadan, the advent of
the product with be beneficial in the market (Palmatier & Sridhar, 2017).
2. International Market Diversification
As the organization is diversifying in the countries with differential
background in terms of society and culture. The innovation and the entry of
the product in the new market will be aiding the company to enhance its
market. The organization can bring about variation in terms of the product by
introducing exotic tastes from the regional flavors, keeping the quality of the
product intact (Stadler et al., 2018).

9BMB CASE STUDY
References
Gosadi, I., Alamri, A., Saleh, R., Almutairi, B., Batais, M., & Alamri, N. (2020). Preference
of Sweeteners among Saudi Diabetes Patients from a Tertiary Health Care Centre in
Riyadh, Saudi Arabia. Saudi Journal of Biological Sciences.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment,
and growth-an interactive triangle. Management and Administrative Sciences
Review, 2(2), 196-206.
Jain, P. C. (2020). Indian Trade Diaspora in the Arabian Peninsula: An Overview.
In Asianization of Migrant Workers in the Gulf Countries (pp. 267-280). Springer,
Singapore.
Palmatier, R. W., & Sridhar, S. (2017). Marketing strategy: Based on first principles and
data analytics. Macmillan International Higher Education.
Rashid, S. (2017). Mapping the Arab Diaspora: Examining Placelessness and Memory in
Arab Art.
Stadler, C., Mayer, M. C., Hautz, J., & Matzler, K. (2018). International and product
diversification: Which strategy suits family managers?. Global Strategy Journal, 8(1),
184-207.
Vargas, A., & Dobbs, J. (2019). Evaluation of FDA Food Recalls in the USA (P04-171-
19). Current developments in nutrition, 3(Supplement_1), nzz051-P04.