10 Jul Response Comments?- After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must b
Response Comments – After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade. The comments must be early enough before the end of the week to allow for replies.
Response Comments - After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade. The comments must be early enough before the end of the week to allow for replies.
Lori Hildebrandt (Student 1)
· After reading the text, search for an organization that does not currently do business globally (outside of their home country).
· What opportunities would international expansion give this organization?
· List 2 – 3 strategies the organization might use and analyze the benefits and risks associated with each strategy. Justify why, in your opinion, international expansion is or is not a viable strategy for them.
Blue Bell Creameries is an ice cream company founded in Brenham, Texas in 1907. It was years later, not until the 1980s, before the ice cream was sold outside the State of Texas. Blue Bell is best known for their creative flavors.
A market study conducted in September 2021, released a report “Ice Cream – Global Market Trajectory & Analytics” showing there is a $82.5 billion opportunity for the ice cream industry by the year 2026. Increased revenue would be a good reason for Blue Bell to consider global expansion. An international expansion would also give Blue Bell access to new talent, new markets, and consumer base, allows the company to diversify, improves their reputation and could give them an advantage over competition.
Global strategy is a goal and set of policies to achieve advantage by leveraging resources, assets, and knowledge across geographic markets (Dyer, Godfrey, Jensen, and Bryce, 2020). A cost analysis for a global strategy opportunity should be completed. Corporate strategy for analyzing what regions, platforms, consumer industry is another strategy Blue Bell should use to determine risk and/or benefit. The organization should consider the regulations and control set forth for international companies before deciding to go international.
As Blue Bell focuses on making quality ice cream in a variety of flavors, taking the company international is not in their best interest because they are a private, family-owned company. In 2015, Blue Bell products tested positive for listeria monocytogenes. The company discontinued production and recalled over 8 million gallons of ice cream. In August 2021, the company put its products back on the shelve after rigorous testing and revised production protocols. Blue Bell chose to only distribute to 15 states in five phases. Their product must be tested two weeks in advance of shipment. Currently, the company is not in the position to go global with the mandated protocols from Texas health officials. Once they have proven themselves safe in the industry again, the strategies listed above could be taken into consideration.
References
About Us. Blue Bell. https://www.bluebell.com/about-us/Links to an external site.
Dyer, J., Godfrey, P., Jensen, R., & Bryce, D. (2020). Strategic Management(3rd ed.). Wiley.
Global Industry Analysts, Inc. (2021, September 21). A $82.5 billion global opportunity for ice cream by 2026 – new research from StrategyR. PR NewsWire. https://www.prnewswire.com/news-releases/a-82-5-billion-global-opportunity-for-ice-cream-by-2026—new-research-from-strategyr-301380472.htmlLinks to an external site.
Globalization Partners. (2021, April 23). Why to expand your company internationally. Globalization Partners. https://www.globalization-partners.com/blog/why-to-expand-your-company-internationally/?utm_source=Adwords&utm_medium=cpc&utm_campaign=Search_|_US_-_Dynamic_[en]&utm_term=&gclid=Cj0KCQjw5ZSWBhCVARIsALERCvwcd0BiZINQfjYV4DZmXwcd8XLfJNa8awoLcgVJWlVtLheMpzu9xNMaAnU6EALw_wcBLinks to an external site.
Guadalupe Azzam (Student 2)
After reading the text, search for an organization that does not currently do business globally (outside of their home country).
What opportunities would international expansion give this organization?
List 2 – 3 strategies the organization might use and analyze the benefits and risks associated with each strategy. Justify why, in your opinion, international expansion is or is not a viable strategy for them.
Patanjali products is an organization who doesn’t do business globally.
Patanjali products is an Indian online store with a wide premium quality of herbal supplements to nourish American households. In the USA Patanjali products are gaining traction among non-resident Indians due to ancient connections of medicinal practices.
Expansion on a worldwide scale would increase their revenue and give them recognition on a global level. Currently Patanjali products headquarters is Haridwar, Uttarakhand, and India. Products being sold are ayurvedic medicine, consumer goods, healthcare, personal care, cosmetics, cleaning agents, beverages, fashion, and foods. Worldwide would help to attract consumers from other countries where some of these products have a substitute which might not be comparable.
Strategy 1: The organization can emphasize that it is using only organic/herbal ingredients in their products. They can list out the ingredients in each product and make it public while marketing.
Strategy 2: They can get certificates from global bodies regarding their products being herbal/organic and safe. They can encourage clinicians and health care professionals to certify their products.
Strategy 3: They can appoint marketing experts or marketing agencies to promote their products on a global scale.
Expansion is certainly a viable strategy because this would increase its revenue substantially. They are already widely marketing in their home country. This global expansion would result in more income. Also, the brand image would improve, and brand value would increase. Expansion would have to be done carefully with inputs from market experts and engaging the services of obtaining a marketing professional.
References:
Patanjali. (n.d.). Ayurvedic medicine. Ayurvedic Products Online Shopping: Shop Online for Food, Herbal cosmetics, Juices, Ayurvedic medicines, Books, CD, DVD – Patanjaliayurved.net. Retrieved July 6, 2022, from https://www.patanjaliayurved.net/
Patanjali franchise and Patanjali Distributorship Opportunity. Patanjali. (2021, April 12). Retrieved July 6, 2022, from https://patanjalifranchise.org/
