Sample Business Coursework Case Study: International Business

Case Study: International Business

Introduction

            The country chosen for expansion of the Rocky Mountain Chocolate Factory is India. The choice of India is guided by the huge market potential presented by the more than 1 billion people that reside in the country. This nation is also among the fastest growing economies and very receptive to western culture and values.

Analysis of India

            India has a population of about 1.3 billion people. Majority of these people fall in the youth age bracket, and they have modest sources of income. Given the population, it presents a much larger market than that one enjoyed by Rocky Mountain Chocolate Factory in North America. The economy of India has had an average growth rate of about 7% per year between 1990 and 2016 (The World Factbook, 2017). This stable growth trend of the country’s economy is a positive outlook for any company intending to set up business there. There is an expectation that the economy will continue with the same trend in the foreseeable future, driven by the young population and the steady rural to urban migration. The cities are the best places to set up shop, as they continue to grow in terms of population and the economies as well.

            The strategy of RMCF is to expand internationally to cover the deficit in the growth of stores that resulted from the financial recession of 2007/2008. Having franchises in India will prepare the company for expansion to other countries in Asia. The great potential of the market for RMCF products in India is made apparent by the fact that the chocolate market in India is among fastest growing markets in the world (The Times of India, 2017). In 2016, the sales of chocolate in most parts of the world stagnated while Indians consumed more than 228,000 tonnes of the product (The Times of India, 2017). More than 44% of Indians find chocolate, snacks and cakes as healthy foods as opposed the populace in the western world that has associated the sweet foods with obesity and health complications (The Times of India, 2017). The chocolate market experienced a growth of 13%, and this trend is expected to continue into the next few years. Surveyed consumers in India have expressed a desire to have a wider variety of chocolate products, providing an opportunity for RMCF in the process. The consumption of chocolate in this country is not limited to the holiday seasons, ensuring a  regular and constant market throughout the year.

Techniques for Entry and Design

            Franchising is the best approach that RMCF can use in its entry into the Indian market. The company should also consider coming up with products that appeal to the Indian cultures and festivals. This is to appeal to the customers that favor homemade products as opposed to foreign products. To execute this well, the company will have to hire professionals having their backgrounds in this country, as they are in the best position to survey and understand the needs of the Indian market.

                                                                     Conclusion

In conclusion, India has a great potential market for RMCF products. This is driven by the stable economy, stable political climate and the rising number of chocolate consumers in the country. India’s chocolate market has the advantage of not being tied up to the holidays. It is a common part of the daily foods of the people, and a good proportion of the residents consider it a healthy diet. The outlook for expansion of RMCF to India therefore, is positive.

References

The Times of India. (2017). India among world’s fastest growing chocolate markets: Research – Times of IndiaThe Times of India. Retrieved 4 December 2017, from https://timesofindia.indiatimes.com/business/india-business/india-among-worlds-fastest-growing-chocolate-markets-research/articleshow/58444087.cms

The World Factbook. (2017). The World Factbook — Central Intelligence Agency: South East Asia, IndiaCia.gov. Retrieved 4 December 2017, from https://www.cia.gov/library/publications/the-world-factbook/geos/in.html