Advantages Of Company Internationalisation

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Strategies of Company Internationalisation

“The Performance of business activities that direct the flow of goods and services to customers and users in more than one country”

In order to gain access to new markets Danone has used a “low cost, low risk, rapid” form of market entry and a multitude of different techniques: Joint Ventures, Partnerships and Foreign Direct Investment. In this section of our report we will discuss the above Internationalisation strategies used by Danone.

Danone began its international expansion in Western Europe in the late 1970’s. In the initial periods Danone attempted to target markets close to it’s headquarters in France, this ultimately offered huge growth opportunities in areas such as Italy and Spain. The expansion to these countries came about through partnerships with local suppliers such as The Fossati Family in Italy.
Once Danone had expanded successfully into Italy and Spain they began to target the rest of Europe, Holland, Ireland, Belgium, the Uk etc…

Following the fall of the Berlin Wall in 1989 Danone explored the possibilities of expanding to central and eastern European countries. They began by exporting products manufactured in western european countries through “Sales Subsidiaries” (Companies that manufacture specific products for specific
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A huge benefit of foreign direct investment is that it massively helps the economic development of a country/business, for Danone this was an essential factor in the expansion to emerging markets such as China, Indonesia and Thailand. A case that demonstrates this is Danone’s large investments to its remaining businesses in Indonesia. Danone's infant formula business in Indonesia includes the SGM and Sari Husada brands and as a result of Danone’s heavy investment they been able target more areas within Indonesia and make available a wider variety of its
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