Industry analyse and International Strategy of Haribo
To analyse the international strategy of Haribo it is first needed to define what kind of industry Haribo I acting in. Haribo is a producer of candy and that is why we have to examine the candy industry. By putting the candy industry into the “global-local” framework we need to look at the pressures for the global integration as well for the pressures for the local responsiveness. The general pressure for a global integration can be roughly summed up as trying to reduce costs. Where as the general pressure for a local responsiveness comes from customizing the company products or general speaking reacting to the needs of the local market.
As graph number one shows the whole candy industry cannot be placed in one spot. It has to be differentiated between various Industry segments. If it is looked at the local candy manufacturers we see that it can be placed at the very right bottom corner. Meaning that the pressures for local adaption are very high and the drivers for the global integration are very weak. This is mainly because local producers are highly dependent on their local customers and therefore adapt their product to their needs. The adaption can be seen in the taste and package variation. Looking at the segments of candy bars, we have to place that segment in the upper left hand corner as graph one shows it. This means that there are very high pressures to integrate these products global and at the time there are only low forces for a local integration. The main reason for the global integration is based on the pressure to reduce costs. This pressure results form high marketing and image costs. To sum it up it can be said that the positioning of the industry depends on the type of segment it is looked at.
Haribo’s international strategy can be clearly classified as being a global strategy. This is because they have high technology and R&D costs. On every international confectionary trade fair the...
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