Transcript
Group 2, Section A
CAGE Analysis : UAE & CANADA
Introduction
CAGE Analysis
Diamond & Double Diamond
Entry Strategy
Expansion Strategy
Introduction
Industry : Frozen Meat and Meat
Products
Target Country : UAE
Home Country : CANADA
Cage Analysis
Cultural Attributes
• Restriction on meat consumption - Pork
• Restriction on processing of food - Halal
• Barriers on eating of food for one month.
• Sensitivity towards local language.
• Local delicacies (camel meat)
• Tendency to shop more in the hypermarkets.
• Eating habits (18 times more than the global average).
Administration & Political Attributes
• The clause of sponsorship (51% ownership is with locals)
• Halal meat certification
• Existance of MOU between Canada and UAE
• Food security is a big concern for UAE government as it relies on imports
• Sensitivity towards packing of the imported food (language & quality)
• Absolute monarchy (leads to high risk)
Geographical Attributes
• Geographical distance
• Climate in UAE
• Cold supply chain
• Telecommunication
• Logistics
• Port infrastructure
Economic Attributes
• Developing tourism industry
• Higher standard of living
• Competition from already existing players from USA & EU
• Ease of re-export to the Middle East and Asian countries
• Local Demand > Local Supply : Import Oriented
• High inflation rate will lead to reduction in import duties
• Presence of global food chain in UAE
Weighted & Double Weighted Score
Distance Type Score obtain
ed
Weightage
0 to 1
Weighted
score
Cultural 5.14 0.40 2.06
Administrative & Political
6.05 0.24 1.45
Geographic 6.69 0.16 1.07
Economic 7.82 0.20 1.56
TOTAL COUNTRY DOUBLE WEIGHTED
SCORE 1.00 6.14
Expansion Strategy
Market Penetration
Market Development Diversification
Product Development
Existing Products New Products
Existing Market
New Market
This reduces the operating cost in the overseas market
Life stock is processed and packed in our home country and hence there is no need for new investment in target country
Advantages
We get an opportunity to get a first hand experience
Processing and Packing
Restaurants Retailers
Aviation Industry
LiveStock
Fast Food Chains
Cold Storage
Porter’s Diamond and double diamond
Firm Strategy, structure and rivalry
Related and supporting Industries
Demand Conditions
Factor Conditions
Chance
Government
25kg per year pre person
People eat a lot of meat in Canada
Demand Conditions Factor Analysis
Capital recourse in high
Canada has high skilled labor ,well developed
infrastructure like cold chain and specialty machine
MOU between provides better trade channel
Government
Government is supporting R&D in meat industry Slaughter Waste Innovation Program
Labor strike
Diseases among the animals
Chance
Good knowledge recourse
Knowledge
Good processes in place
Related and Supporting Industry
Presence of strong supporting industries- Cold Storage,
logistics, chemical, spices, packaging , restaurant and
retail.
• Halal certification• Sponsorship (51% stakes owned by Emirati)• Tie up with a local logistic provider (outsource
logistics)• Outsource Cold Storage facilities• Hire local legal consultant for contract related
issues and legal implications• Invest in the office infrastructure to co-
ordinate the operations with the head office
Entry Factors
Advantages of the model
• Outsourcing of the cold storage facility reduces the infrastructure investment in the unknown territory and hence risk is mitigated
• We can concentrate on our core competency and maintain good quality
• Outsourcing logistics will enable us to exploit the local expertise
Dubai
Abu Dhabi
Ajman
Fujairah
Sharjah
Ras Al Khaimah
Umm al Quwain
Saudi Arabia
Kuwait
BahrainOman
Qatar
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