Berri Pure Fruit Juice Case

1499 Words Nov 17th, 2012 6 Pages
Berri Pure Fruit Juice Case
Ágústa Hera Harðardóttir, Christian Washausen, Kerstin Fick, Michelle Won

1.

Based on what you know from the case and given that the international expansion to Asia-Pacific is agreed upon, what decisions have to be made by the company and in what order?

After analyzing the company’s external and internal environment in Taiwan, the business and mission for the particular market have to be defined. During the process Berri has to set its objectives for the market, quantify its goals and, based on this, decide on their strategy and tactical plan.
Having chosen an international expansion to Taiwan the company has to decide how it wants to position itself in the Taiwanese market. Based on this decision
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The reasons for the company to choose Taiwan as the primary target for its international expansion is most likely found as a result of weighing the pros and cons of such a consideration. To do this it is helpful to use a SWOT analysis to uncover the strengths and weaknesses of the internal environment
(the company itself) and the opportunities and threats for the external environment.
INTERNAL ENVIRONMENT
Strenghts
Berri Ltd. is the largest Juice producer in Australia with nine production locations and has already a strong presence in the Asia-Pacific region so it already gained international experience in the
Taiwanese surroundings (Japan, Hong Kong, Singapore). It has a good financial position to carry long term investment in the overseas market. Berri’s portfolio consists of several juice brands and various qualities so they will be able to match the right product with the chosen market segment. Its juice is produced without any additives or sugar.

Weaknesses
Compared to the Australian market there is no brand awareness in Taiwan. The company is not that familiar with the Taiwanese culture nor has it any experience with doing business in Taiwan where relationship building is considered critical. Fresh Juice is a time-constrained commodity product and
Berri does not have a distribution system in Taiwan. There are already some competitors on the market so there is no first nor a second mover advantage.
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