Internationalization of the Ethnic Food Industry

Detta är en D-uppsats från Göteborgs universitet/Graduate Business School

Sammanfattning: Small companies from newly emerging markets are usually limited in theirgrowth strategy by lack of market in their own countries. This is mainly due tolow purchasing power of the population in their countries. Therefore thecompanies seek possibilities to grow by establishing themselves on foreignmarkets. However, due to insufficient resources, the SMEs are not in a positionto do enough research on the nature of the new environment they will be facedwith. As a result, they do not actually know how to position themselvesstrategically in terms of marketing efforts.The purpose of this thesis is to investigate the ethnic food segment of foodindustry and to analyze how a small foreign company manufacturing ethnicfood can position itself strategically on the Swedish market. We have used aSouth African SME -- Ethnic Cuisine Investment Ltd (ECI) as our casecompany.In order to analyze the elements of importance in ECI’s strategy, we brieflyinvestigated the macro-environment in order to identify the drivers in thisindustry. However, our main focus is on the ethnic food segment of foodindustry, in order to understand its logic. We also scrutinize the firm’sresources and capabilities, so that we can identify the gaps that need to be filledin order for it to succeed in the Swedish market.The complexity and dynamism of the Swedish market for ethnic food posesseveral challenges to a small foreign actor. Thus to act efficiently, the companywill need to be very committed and goal oriented. The success of the smallactor entering this market will depend on how well the company can organizeitself in order to achieve effectiveness in its operations.

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