Argentine confectionery manufacturer, Arcor Group, seeks to implement an international strategy but in , recovering from the Argentine financial crisis. Post crisis Arcor restructured its international division adding more They could locally tie up with the distributors and offer them to enter in. Custom Arcor: Global Strategy and Local Turbulence Harvard Business (HBR) Case Study Analysis & Solution for $ Strategy & Execution case study.
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Did you know you can shorten your links with Shortest and make money from every click on your short links. Globally, the confectionary industry is a highly competitive industry and attractive in the emerging and developed markets, Wherein North America and Western Europe accounted for over two-thirds of sales.
The manufacturing sectors are usually located near suppliers. Industry has high transportation cost because of bulky raw materials. Chocolate and candy manufacturing is a complicated process which requires automated heavy machinery which increases investment. The consumers are more prices conscious in the emerging markets because of the low income whereas in these globao countries, for e.
Argentine confectionery manufacturer, Arcor Group, was already Latin America’s leading candy producer and an exporter to over countries.
Arcor: Global Strategy and Local Turbulence
It wanted to be known for: It was slowly moving out of the big cities and entering the interiors. As Argentina was facing problems because of suppliers, it started producing on its own.
It started investing more so that their products reached the market, however, unlike competitors spent less on marketing. By the end ofit planned to expand in various international markets.
The Argentina crisis did not only force them to rethink about global expansion but also about their domestic agenda. Foreign investors were losing confidence in the Argentinean market because of economic crisis and they started to withdraw funds.
Arcor was able to fight with the external environment, however with time its sales fell drastically. Arcor brought in changes according to their competitors, though these changes were costly, these were brought about to help the company understand the consumer behaviour.
They further tightened the regulations for their retailers. At turbulencd end ofthe crisis began subsiding and business was recovering.
ARTHGYAN-PER CAPITA: CASE ANALYSIS -ARCOR: GLOBAL STRATEGY AND TURBULENCE
Post crisis Arcor restructured its international division adding more employees and catered to newer markets. Arcor was then analyzing how to become global with production facilities and distribution networks in various regions, such as North America, Europe, and Asia. Luis Pagani, vice president, Arcor began exploring various routes his company could follow.
Thus, he decided to maintain contacts with the global partners so that no opportunity is left unturned. The company could explore options of globalising by either entering the Mexican market, where it can easily understand the US market, however the supplier network is well stratefy there which is a constraint for Arcor.
Arcor: Global Strategy and Local Turbulence Case Study Analysis & Solution
They could locally tie up with the distributors and offer them to enter in markets where Arcor has a dominant share such as Latin America. As there are pros and cons of entering any market, the company would have to carefully explore each opportunity and threat so that in the long run it can turbu,ence to be dominant players.
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