Business Strategy Analysis: Muji's Expansion & Kerry Foods' Growth

This report presents a detailed analysis of the business strategies of two companies: Muji and Kerry Foods. It begins by examining Muji's expansion strategy in Singapore, highlighting its ability to grow in a competitive market with limited space. The report analyzes the implications of Muji's expansion on the Singaporean economy, consumer behavior, and the retail industry, while also providing recommendations for future growth. The second part of the report focuses on Kerry Foods, a global leader in the food industry. It identifies Kerry Foods' strengths, including innovation, technology, and sustainability, and weaknesses, such as a complex infrastructure and potential cross-cultural barriers. Based on these findings, the report provides recommendations for Kerry Foods' expansion strategies. The report concludes by emphasizing the similarities in the companies' strategies, particularly their focus on sustainability, and their differing approaches to market access.

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student:
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Author Note:

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Introduction
Deciding a business strategy requires much planning and consideration. Any
company, when they are taking any significant business decision, decide a strategy
that aligns with the company goals and objectives, their mission and vision. In this
report, the expansion strategy of Muji, a Singapore based company has been
reported from a newspaper article. Moreover, the strengths and weaknesses of Kerry
Food has been analyzed and recommendations have been made so that they are
able to expand to more territories.
Part 1
The Straits Times published an article titled, “Muji to continue expansion in
Singapore”, written by Sue-Ann Tan, on 11th March, 2019. Muji is a brick-and-mortar
retailer company in Singapore. While most of the companies in this industry are
facing difficulty in keeping their business running, Muji is expanding their business
rapidly in Singapore (Appendix). The organization is aiming to target the larger
population of Singapore through this approach. The market and land area is limited
and thus does not provide much opportunity for expansion.
I think this news is important because the company is managing to expand in a
saturated economy, a feat most other company has been unable to do. There is
almost no provision for expansion and growth due to the limited market and land
space in Singapore. In this situation, a company such as Muji is expanding and it
needs to be considered how the company is being able to manage such a growth.
Expansion needs much consideration of the host country. This expansion of the
company has specific implication on the external aspects like economic and social
condition of Singapore. The fast and open economy of Singapore is the reason for
which companies like Muji has been able to expand their business this rapidly. The
Legal requirements of the country also allows businesses to grow without much
difficulty. The company themselves are ensuring that their environmental
responsibilities are upheld as they are focusing on sustainable resources and
structure for both their products and store design. Most of the consumers prefer
branded products as they believe that they are better quality products. They also

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believe in use and throw concept which is greatly challenged by the companies’
ideals of long-term product use. Despite all that, Muji has been able to create their
niche market in the country.
I want to share this news to others so that they are able to think about the company’s
strategies that are allowing them to continue to grow. The marketing strategy of the
company also needs exploration. In a fast economy like Singapore, they are
promoting use of sustainable and long-term products. They are doing this
successfully as they have a large customer base. They are trying to tap the larger
customer base and their strategy of providing regular sustainable products at
reduced rate will be able to do that. It also needs to be explored how the economy
and consumer behavior of the country will affect the company.
Their expansion will change many aspect. The company has potential to bring
buying behavior of the Singapore consumers. The consumers that earlier wanted
only branded products will be shifting their focus on these products. It is also likely to
impact the industry that it belongs to. The other retailers that have done successful
business in the country. Retailers like The Fishwives, S-Mart, Hediard will be facing
stiff competition from Muji. The company have simple design for the store which
requires lesser investment and thus they are able to incur profit much easier. The
impact of this news on Singapore economy will be profound as well. From the
situation, it can be predicted that the consumers of Singapore are likely to shift their
focus on sustainable products and thus Muji’s demand is likely to increase.
The expansion of Muji over Singapore territory shows that the Singapore market has
much opportunity. The company has its business in European market and southern
countries, though their sales there is not as promising as that of Singapore. The
change prediction demands that the company remains ready to expand more in
future through the country. It is recommended that Muji keeps expansion provision
for their old as well as new outlets. It is also recommended that Muji analyzes the
market trends and growth of Singapore to be able to predict changes in the market.
This shows that countries looking to expand in Singapore have the opportunity to do
so. Despite limited land space, the country is offering a booming economy, a stable
political environment, ready and mature market, technological advancement and

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ease in legal solutions. Companies like Kerry Group, analyzed in the following
section has much opportunity for business in the country.
Part 2
Kerry Group is the leader in global food industry. They are the provider of taste and
nutrition technology and systems. They have over 15,000 products that are
developed over 147 manufacturing sites spread all over the world. The company is
based on Ireland. Kerry foods is the consumer food division of Kerry Group. They
aim to serve the food, beverage and pharmaceutical industry through their added
value brands and branded foods for the customers in United Kingdom, Ireland and
other selected international markets (Kerrygroup.com., 2019). They have
sustainability as their main motto.
The strengths of the company are:
Innovation: I believe that the company is largely based on research an innovation.
The scientists of the company are involved in continuous research and develop new
products for the consumers. They provide multiple choice to the consumers while
maintaining the sustainability (Brilli et al. 2017). This makes one of the company
strengths.
Technology: I think that Kerry Foods uses updated and cutting edge technology for
their research and development. Their manufacturing units also have latest
machines and equipment. All this makes the company technologically advanced
which is a strength.
Sustainability: Sustainable business practice has become mandatory in recent
times. As per my understanding, Kerry foods conducts their business in such a way
that they are able to ensure marketplace sustainability, environmental sustainability,
community sustainability and workplace sustainability. They are able to keep the
consumers, workers, governments and stakeholders happy, all at once. This is a
strength of the company.
The weaknesses of Kerry group are:

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Firm Infrastructure: I believe the farm has a complicated infrastructure. The
manufacturing units are spread worldwide. This makes the co-ordination difficult.
Cross Cultural barriers: Kerry is likely to face cross cultural barriers due to rapid
expansion. As they are expanding to new markets, they might face problems in
analyzing the cultural aspects of the new market, needs and desires of the new
demography and difference in market condition.
Recommendations for Kerry Foods:
 I think The organization should also simplify their infrastructure and categorize
their products and distribute the manufacturing evenly over their different
units. They might also strategize their production location and quantity
according to the demand of the country.
 It is also recommended that they create clear guidelines and strategies before
they approach new market that includes methods of overcoming cross cultural
barrier.
Conclusion
From the above discussion, it can be concluded that like Muji followed a clear
strategy for their expansion in Singapore and successfully handled a profit growth in
a competitive market. Like that, Kerry Food can follow the recommendation for their
better profitability. Both the companies has much similarity in their business strategy.
Both companies have sustainability as their strategy. The use of such products are
increasing and thus have a niche market in Singapore. The main difference in their
strategy is that Muji follows a Business-to-customer strategy as they sell to the end
customers while Kerry Foods have both Business-to-business and business-to-
customer strategy.

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References
Kerrygroup.com. (2019). Kerry Group. [online] Available at:
https://www.kerrygroup.com/ [Accessed 28 Sep. 2019].
Tan, S. 2019, Muji to continue expansion in Singapore: Muji to set up two more
stores by year end, including at Jewel Changi Airport, Singapore Press Holdings
Limited, Singapore. The Straits Times.

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Appendix

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