Question

Topic: Strategy

South Africa Market Entry Strategy

Posted by Anonymous on 4/15/2008 at 9:13 PM ET 125 Points
Hi, my company wants to enter food market in South Africa (Zambia), which strategy is suitable?
Exporting, Joint venture or Licensing?
Thanks alot in advanced
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RESPONSES

  • Posted on 4/16/2008 at 1:02 AM Accepted
    Hi,

    Am assuming you already have tie-ups with manufacturers/traders in food category in question.

    The operating model would depend on the foloowing factors:
    Ownership:
    If want to enter retail then Franchise/Joint venture
    If do not want to enter retail then Exports
    Level of investment:
    If the level of investment is high and margins are under pressure then JV or Licensing
    (Licensing can only happen if you have the rights for the product)
    Type of sub-category within Food market
    Expansion Plan
    If Rapid expansion in Retal: Franchise/Licensing
    If rapid expansion otherwise: JV

    Hope it helps
    Prati

  • Posted by Levon on 4/16/2008 at 1:11 PM Accepted
    You should check out austrade.gov.au - they have a breakdown for each country.
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