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Analyse Three Differences That Kraft Might Experience from Selling Oreos in International Markets Compared to Their Home Market

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Submitted By needhelpnow13
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International expansion is very appealing to a lot of businesses as there is a lot of potential to gain profit and explore untapped markets. For most businesses, expanding/moving into new markets is not an easy transition, especially international markets, as Oreos did. The differences that Kraft will have to face would most likely come from these five factors: cultural, social, political, economical and legal differences. When expanding into an international market, one of the very first things businesses will have to consider is the legal difference; different countries have different laws regarding the setting up of the business, how the business operates, marketing laws and much more. Of course, most businesses expand into new markets in hopes of succeeding thus they would need to consider their chances of being successful and a lot of that comes from the economics for the most part though also politics. The economic factor in this case would affect the pricing of the product; as did the prices of oreos in china → Kraft reduced the prices of Oreos and hence the packaging size as well. This leads us on to the next point; cultural difference. Following the example of Oreos expansion to China, Oreos had to reduce the size of packages sold in China, not only to reduce the price but also people in China generally have a smaller appetite than Americans. A lot of the things in America are supersized due to the fact that they generally are bigger, hence when Kraft brought Oreos to China, they had to reduced the size in order to appeal to Chinese consumers. Since the cultural difference is the biggest factor that Kraft and other businesses need to take into account while considering an international expansion thus research plays a huge role in the Cultural factor. Companies spend millions on research and development in order to get through to the people of...

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