Chiquita banana case
Contents
Chiquita Banana Overview 2
PESTEL analysis for the European Union 2
Political: 2
Economic: 3
Sociocultural Factors: 3
Technological: 4
Legal: 4
Environmental: 5
Marketing Mix 6
Product: 6
Price: 6
Place: 7
Promotion: 7
SWOT Analysis 8
Strengths: 8
Weaknesses: 8
Opportunities: 9
Threats: 9
Internationalization Strategy and Viability 10
Chance: 11
Incoterm 12
Possible incoterms for the company 12
Solution 12
Appendix A 14
Works Cited 15
Chiquita Banana Overview
Chiquita Brands International, Inc. is one of the most important international marketers and distributors of food products derived from bananas, as well as other fruits and healthy snack products. Chiquita Banana revenues for about $3 billion dollars a year and employs more than 21,000 people and operates in about 70 countries worldwide. Chiquita Banana together with Dole, Del Monte and Fyffes control about 80% of the global banana market. In 1993 the EU created the Common Organization of the Market in Bananas (COMB) to deal with the harsh competition between these companies. They would allow duty free access to the EU but subject to quotas to bananas from the Africa’s, Caribbean and Pacific, while bananas from Latin America were subject to an import tax of 176 Euros per ton and a quota of 2533 t.
As an American company we have decided to take advantage of the new treaty restricting Latin American and ACP countries from exporting bananas to the EU. It will not be an easy task because we still have to compete against European banana producers, but we are an established company and we are determined to benefit from this event and gain market share in the European Union.
PESTEL analysis for the European Union
POLITICAL:
• The European Union is composed of 28 member states.
• The EU has created a single market by standardizing laws within the member states.
• Some of the objectives of creating this union is to create a better flow on the circulation of
Chiquita Banana Overview 2
PESTEL analysis for the European Union 2
Political: 2
Economic: 3
Sociocultural Factors: 3
Technological: 4
Legal: 4
Environmental: 5
Marketing Mix 6
Product: 6
Price: 6
Place: 7
Promotion: 7
SWOT Analysis 8
Strengths: 8
Weaknesses: 8
Opportunities: 9
Threats: 9
Internationalization Strategy and Viability 10
Chance: 11
Incoterm 12
Possible incoterms for the company 12
Solution 12
Appendix A 14
Works Cited 15
Chiquita Banana Overview
Chiquita Brands International, Inc. is one of the most important international marketers and distributors of food products derived from bananas, as well as other fruits and healthy snack products. Chiquita Banana revenues for about $3 billion dollars a year and employs more than 21,000 people and operates in about 70 countries worldwide. Chiquita Banana together with Dole, Del Monte and Fyffes control about 80% of the global banana market. In 1993 the EU created the Common Organization of the Market in Bananas (COMB) to deal with the harsh competition between these companies. They would allow duty free access to the EU but subject to quotas to bananas from the Africa’s, Caribbean and Pacific, while bananas from Latin America were subject to an import tax of 176 Euros per ton and a quota of 2533 t.
As an American company we have decided to take advantage of the new treaty restricting Latin American and ACP countries from exporting bananas to the EU. It will not be an easy task because we still have to compete against European banana producers, but we are an established company and we are determined to benefit from this event and gain market share in the European Union.
PESTEL analysis for the European Union
POLITICAL:
• The European Union is composed of 28 member states.
• The EU has created a single market by standardizing laws within the member states.
• Some of the objectives of creating this union is to create a better flow on the circulation of
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