INTERNATIONAL STRATEGY

International Strategy



Executive Summary

The company is a fictional company having no existence in the real world. It is called DREAM VENDING and it will be focus on marketing its vending machines in the United Kingdom, whose mission is to provide healthy and handy food and entertainment products to the customers. The foods which this vending machine will vend consists of healthy foods rich in fibre including fresh salads and whole nuts. The entertainment products includes magazine CDs for games and movies. This vending machine it will be designed in accordance to the need of the special market focusing their needs and what they require while keeping an eye on all the factors which might affect the demand of the machine.

The company's vending machine is designed to meet the market demand and work to provide best facilities for the better health of individuals who love to have delicious and healthy food. The target market of consumer will provide us an overlook on the requirement for the machine. Their vending machine will be a complete solution for people who want food and entertainment while they are far away from their homes.

International Strategy

Introduction

Dream Vending is a Japan based private limited company operating the “Vend Trend” brand of vending machines in the Japanese market. DV was established as a family owned and operated business in 1966 by Yokoshi Akihiko, an engineer with experience in chilled food technologies. Akihiko built up the company when vending machines were still a relatively new concept in the Japanese market. In recent times DV has struggled to maintain profit levels in an increasingly saturated market. In 2010 the company posted sales of a modest £15 million estimated to be slightly short of 1% of the total Japanese market. The overall Japanese market was valued at around £1.8 billion in 2010 with the number of operating vending machines across Japan estimated at roughly above half a million units. For the past five years or so, installed base and value sales of the vending market have both been in decline although the efforts of some operators to increase value sales have had some modest success. The market value is expected to decline in the immediate short term but market research predicts a turnaround after 2014.

This paper aims to analyse the company's potential to enter into the UK market with its new vending machine called “Healthy Vending.”

The UK Retail Industry

The retail market of United Kingdom is undoubtedly highly competitive as both new and existing companies are trying to compete at every imaginable level. By every more these companies make, they are trying to make the competition dense and intensive. For this reason, a number of companies are in need, to revise, their marketing strategies (Dess, et al, 2009, pp. 180-196).

Because of this vast competition, only companies with a strong, competitive advantage can survive in this environment. Although, Michael Porter suggested three different strategies, which can serve as a competitive advantage for any company, ...