Lifeway Kefir Expand Overseas Market Feasibility Report

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Lifeway Kefir: expand overseas market feasibility report

Module: MGT 3201 Global Business Strategy
Module Tutor: Dr Simon Best
Group Number: 02
Group Members:
Yiyao Dou M00323017
Xiao Han M00326999
Yue Zhou M00324174
Suili Zhu M00327268
Lingfeng Zhang M00327281

Date of Submission: 21/2/2011
Word Count: 4382
Table of Contents

1. Introduction.................................................................................. 3 2. The internal and external environment of Lifeway Kefir………….…...4 * 2.1 SWOT analysis…………………………………………………………………......4 * 2.2 PEST analysis………………………………………………….………………..…..7 3. The reasons of entering in Philippines………………………………………...10 4. Market entry modes selection……………………………………………….…..…12 * 4.1 Exporting……………………………………………………………………….........12 * 4.2 International Strategic Alliances…………………………………..……….13 * 4.3 FDI……………………………………………………………………………..……….…14 5. Conclusion .....................................................................................16 6. References..................................................................................... 17

1. Introduction
Nowadays, as an increasing of international cooperation, the global is a necessary trend and the competition from foreign firms also more and more fierce. Of course, with the higher risk and strong competition, the company will make more profits. So, based on the main trend and strong benefit, the company “Lifeway Kefir” also wants to expand into overseas market now. The purpose of this report is to analyses the host country strategic environment and several alternative model of entering the international market to help Lifeway Kefir choose a suitable country and market entry strategy. Firstly, the report will analyze Lifeway’s internal environment by using SWOT, and external environment by the method of PEST in order to cater to external trends. Next, the report refers to the motivation for Lifeway by using four strategies to analyze the feasible model in order to choose its international business and geographic schema of international expansion strategy. In addition, the report will discuss suitable strategy to entry the market through analyzes the reason of entering a specifying country – Philippine. Finally, there is a conclusion to discuss whether Lifeway Kefir should enter the country now or in the future, and with that entry mode. Then, based on the conclusion, the report will suggest a brief execution planning for Lifeway Kefir to enter the country, also some preparations and actions. If we want to help Lifeway Kefir design a suitable model of entry the market, we need to understand this company’s background. The Lifeway food was begun in 1986 with Kefir, a milk-based cultured drink that was popular in Eastern Europe and the people thought it is more nutritional than yogurt. At the same year, Russian immigrant Michael Smolyansky began manufacturing kefir in his basement to bring the different taste of his original country to the U.S. After Michael Smolyansky dead in 2002, his daughter Julie Smolyansky to assume the responsible of chairman of the company, and his son Edward Smolyansky assume responsibilities of Financial Controller and accountant. As it was from Eastern Europe and Scandinavian countries, the initially target market was Russian immigrant in Chicago. Soon company changes its marketing strategy and enhances its reach to healthier consumer regardless of their nationality. They used health food channels for distribution and word of mouth gave them boost. Today, Lifeway is the country’s leading manufacturer of kefir, with a variety of taste and varieties that include lowfat, whole milk and organic versions as well as a children’s line, and a provider of other probiotic natural and organic dairy products for health-conscious consumers (Lifeway Kefir, 2010) On the other hand, this report also has some limitation. Due to the problem of status, region and time, we cannot do a...
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