The case of a Slovenian Gazelle
As said Mozetic, there are three groups of potential market segments for the international expansion of DON DON. The first one concerns the Italian markets, the second one includes Austria and Germany and finally the last one concerns the Visegrad group of countries (Hungary, the Czech Republic, Slovakia, and Poland). So we will focus our analysis on these countries.
* In 2005 DON DON was among the leading suppliers of fried pastries on the Slovenian market. * DON DON has got a great capacity to recognize customers needs and wants, which permit to offer tailor-made products and services. * He managed to differentiate by becoming the first Slovenian bakery to brand its fried pastry. *
It has the advantages to have a Technological leadership. * Good development strategy thank to lots of Research and Development, an aggressive market strategy, and a great dynamism at point of sale. *
Well-developed production and distribution due to its sophisticated IT system and five production-distribution centres. *
Well-known brand: It’s the first Slovenian bakery to develop a separate brand name, and good recognition for Slovenia. *
Good business organisation with a complete decision-making system. Weaknesses
* They have got a lack in marketing capabilities; their advertising and promotion activities are limited. * Company do not cover each part of Slovenia because there are no fast food restaurants in south and north of Slovenia. * As we can see in the balance sheets DON DON has got many debts. * They don’t have a good expertise in international markets.
Italy is the second largest market in West Europe of baked products. *
Customers buy lots of baked products and for high prices.
There are a high number of actors in the market. There is a price competition. *
The intermediaries system is very...
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