Analyzing Market Entry Strategies for a Biscuit Company's Expansion

This report analyzes strategic market entry methods for a biscuit company aiming to expand internationally. It explores direct exporting, licensing, franchising, and acquiring local companies as potential strategies. The report uses examples like Nabisco, Burton Biscuits Company, Tudor’s Biscuit World, and Mondelez International to illustrate each method. The conclusion emphasizes that the selection of appropriate strategies will help the biscuit company to increase its market share, global sales, and revenue. The report is designed to aid the company in strengthening its global presence and achieving its business objectives, providing a comprehensive overview of various internationalization approaches. The report also includes references to support the analysis.

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGIC MANAGEMENT
Introduction:
A biscuit company exports its products in the international market. The senior executive
of the biscuit company is interested to strengthen the business in the international market. This
organisation is interested to grow substantially in the global market. However, this paper aims to
analyse various strategies, which will be suitable for this organisation, to enter a foreign market.
Discussion:
This company can utilise direct exporting method to export the goods in the international
market. To analyse this method an example cane be helpful to understand this method. For
example, Nabisco, a USA based company, can sell its product directly into the chosen foreign
market through agent and distributors. The agents and distributor of this company work closely
with the officials of Nabisco to represent the interest of this organisation in the foreign market
(Hollender, Zapkau and Schwens 2017).
This company can use licensing method to export the goods in the international market.
For example, Burton Biscuits Company does a sophisticated agreement with another firm to use
the product of Burton Biscuits Company. In this method, the buyer of the license has a relatively
large market share in the chosen overseas market (Laufs and Schwens 2014).
This company can follow Franchising strategy to export its products in the chosen
foreign market. This method is useful for rapid market expansion. The brand recognition of a
company is the key to the success of this strategy (Rosado-Serrano 2017). For example ‘Tudor’s
Biscuit world’, a USA based company uses this strategy to expand its market share. To export
the goods in the international market this company utilises this strategy.

2STRATEGIC MANAGEMENT
Buying a local company can be a useful strategy to export goods in the chosen foreign
market. In this method, the senior executive of the biscuit company has to buy a local company
to enter the foreign market. For example, Mondelez International, Inc, a USA based global
business organisation uses this strategy to expand its market in the chosen foreign market. This
company buy some local companies in the chosen overseas market. Through the newly bought
company, the official of this organisation delivers its products in the selected market (Tulung
2017).
Conclusion:
Thus, this paper concludes that the management of the biscuit company can utilise direct
export strategy, licensing method, franchise method and buy the local company as a method to
export the goods in the international market. It will help this company to increase its market
share, global sales, and revenue. To achieve business objectives, this company has to strengthen
its global presence.

3STRATEGIC MANAGEMENT
References:
Hollender, L., Zapkau, F.B. and Schwens, C., 2017. SME foreign market entry mode choice and
foreign venture performance: The moderating effect of international experience and product
adaptation. International Business Review, 26(2), pp.250-263.
Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), pp.1109-1126.
Rosado-Serrano, A., 2017. Franchising as strategy for internationalization of Family Firms: an
exploratory study. Rosado-Serrano, Alexander.(2017). Franchising as Strategy for
Internationalization of Family Firms: An exploratory study. Newmann Business Review, 3(1),
pp.145-165.
Tulung, J.E., 2017. Resource Availability and Firm’s International Strategy as Key Determinants
Of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), pp.160-168.