Edita Foods: Revolutionizing Egyptian Packaged Food Markets Since 1996 - Essay Sample

Introduction

Edita Foods was among the best-performing companies in the production of packaged food in the Middle East and Egypt. The company was founded in 1996 as a result of a merge up between the Berzi family and Chipita International. Edita was first known with the introduction of Molto, a chocolate-filled croissant that was regarded in the Egyptian markets to be highly nutritious, tasty, filling, and healthy. This inventory was followed with other several inventories of high-quality products. Apart from producing food products, the company has high-end laboratories with recent technologies that are meant to inspect all materials regarding the safety of the products. The company's products targeted different markets and people of different ages across the territorial markets.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

What factors should Edita Foods consider when choosing possible new countries for expansion?

As different companies grow, there are plans to go international or rather explore international markets. To realize these targets, the leadership team must answer the following questions. Where do we start, does our profile need to change, what about our products, do we have to adapt? The list of questions to be answered may seem endless, not until the proponents make the first attempt.

Brand Recognition

Do the brands of the company have the desired level of recognition in the intended market? Nowadays, traveling has been easier than before, making many people familiarize themselves with several products outside their local markets. A high level of recognition of a specific brand in the market puts you ahead of the game. Entering a market where brand recognition is already high enables your business to pick right from the start. It serves a purpose to conduct a pre-research to find out your position in the potential new market.

Geographical Distance

Going international for the first time in terms of a business depends on the likeliness of receiving interests from the relevant franchise. Due to the flexibility of relocation and travel across the globe, starting your brand expansion in international markets may be advantageous in brand recognition. When it comes to training, supporting, and managing permit fellows, exploring the additional markets away from home is likely to pose more challenges such as dealing with the time zone changes, travel time, and logistics barriers. If it's the first time going international, a great deal of attention may be required, making it easy to access a new market and provide the required support to your franchise partners.

Cultural Understanding

Every country has its culture both professionally and socially. Choosing a new country to advance your business means learning a new curve in adapting to new norms of doing business. Working with your franchise in strategizing to new market materials is vital in understanding the consumer. Entering an international market through franchising helps in understanding how business is conducted in new economies. Understanding the cultural differences between the entry markets and your culture is important in building a formidable partnership with the franchise minimizing cultural faux as a result. The same applies to language. It is important to start in a country where are sizeable people who speak the same language as yours to avoid the use of manual translating.

Market Landscape

Considering the market environment of the entry market allows for a significant comparison with the current market in assessing the earning potential of the company in the potential market. Similarly, market landscape is vital in determining the current competitive markets, uniqueness in and success rates, and the big players in the industry. If the level of competition is too high, little room is left for the new players, making such markets inappropriate for brand venturing.

Assessing Export/Import Opportunities

Gaining more knowledge about any given company demands for continuous scanning of the environment to determine the extra business opportunities with regards to food products and new location. However, it is not a guarantee that the identified business opportunities must be beneficial in terms of profit. Company officials are tasked with the responsibility of evaluating the available opportunities and abandon the less productive opportunities. International companies have export and import as their main operations. Extra income from either import or export increases the chances of prosperity that of Edita in new countries.

Besides the main line of business, Edita had additional products to import to South Africa and Jordan. Edita imported Faragalla to Jordan and other beef products because, unlike chicken, beef products are not abundant locally. Only tobacco and alcohol imports received higher tax duties, according to the Jordanian government. Imported products had a maximum of 20% as the import tax. For South Africa, Edita imported Halal and Kosher two baby foods from Gerber. Halal was a highly regarded food product among the Muslim community. An increase in the number of Muslim followers in South African meant high demand for Halal products. Gerber being a frontrunner in the worldwide production of baby foods, exporting 190 different products to over 80 countries, South African resorted to decreasing the amount of import tax as per the terms set by members of the World Trade Organization.

Similar to imports, Edita had additional interests to export some of its products to the rest of the world. The most common was the Nabulsi cheese of Jordan. The cheese made from sheep, goat, and possibly cow's milk had high-level calcium making it an essential consideration among the health experts. The market leader of the time, Wafer, ensured a wide range of products of Nabulsi products that were majorly exported to Saudi Arabia. For South Africa, Edita had the interest to export Sally Williams nougat. Having been considered among the finest nougats in the world, the products were exported to the United States and Canada specifically. The products were tested and approved to be safe for human consumption. The fact that Sally Williams collected most of the components from around the world, the company has witnessed the massive exportation to further new entry markets such as Italy and France.

Exports rank higher than imports. This perception may be due to the extra struggle that the exporting companies engage in with determination to compete and conquer the international markets and expand the company's country of origin chances of further economic freedom to additional countries.

Identify the Possible Modes of Entry

Licensing and Franchising

Franchising means allowing a completely different person to duplicate your business in a different environment. Licensing means allowing a different person to sell your commodities. These two aspects applied to the case of Edita Foods, considering the desire to work in different countries.

Direct Exporting

Based on the businesses that Edita engaged in, the company could play both the supplier and producer roles during export and import, respectively. This direct or intermediary delivery can be made possible by retailers, sales representatives, and foreign distributors from countries that are benefiting the company. To develop a stronger ability to expand beyond borders has become a necessity in human lives. Using intermediaries demands for an additional cost so, Edita resorted to doing direct exports when the market conditions were most feasible. The conditions determine marketing ability, business conditions, and exporting experience.