Kanti Sweets Case Study
According to Tallman and Yip (2001), the follow strategic issues should be considered by MNCS: • Geographic Spread: This refers to the spread of the business beyond India and the mode of entry decided upon to internationalize the business. As discussed in the earlier chapters, the franchising mode of entry would be chosen to make Kanti Sweets an international business as it is a low cost, low risk entry mode. Upon the success of the franchise model in Australia, other countries will be targeted. • Local Adaptation: This issue concerns the degree to which the business will adapt to the foreign market and its specific circumstances. One of the benefits of following a franchise model is that it allows entry into foreign markets where you have …show more content…
The issues related to this aspect are how much product and service standardization should be present, how the company takes advantage of its spread across the globe, how each unit exploits local resources to be competitive, etc. The basic dilemma that MNCs usually face is between local adaptation and global integration. For Kanti Sweets, since a franchising model is being followed there would have to be a fine balance between these two aspects. The format and brand of Kanti Sweets will be consistent across markets and countries, but certain elements can be tailored to local tastes. For example, if it is found that certain sweets are not liked by the customers in a specific region, they can be removed from the menu. Kanti Sweets will be entering only those markets which are similar in terms of customer tastes, that is, those markets where demand for Indian sweets and savouries is high. These markets are usually also those where a large proportion of Indian population is present. By following the strategy of targeting markets with similar tastes Kanti Sweets can ensure a higher rate of …show more content…
This means that majority of their products would contain preservatives in order to sustain an increased shelf life. Haldirams is also a brand that has sufficient fame amongst the North-Indian community. Hence, the entry of Kanti sweets would be largely welcomed by the South-Indian community and also the products served would be fresh and would not contain preservatives since it would be manufactured in Australia. Apart from Haldiram’s there are few local sweets & savories shops run by local Indian-born nationals – however, they are small, over-priced and do not offer a wide variety of products as Kanti
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