Mars Inc, Nestlé, Nestlé Purina PetCare, pet care, pet care industry, Whiskas, Chappie, Royal Canin, Pedigree, pet food, pet care market, pet well-being, globalization, international trade, FDA Food and Drug Administration, STDF Standards and Trade Development Facility, DGSV Direction Générale des Services Vétérinaires, innovation, food regulation
For a few decades, the international trade has been in constant expansion, with the exchange of goods rising by more than 8 per cent per year. Thanks to globalization, companies operate more and more outside their home nation and start to reinforce their international strategies in order to enter and expand efficiently on other markets.
In this report, we will mainly focus on the pet care industry and give an insight of the main characteristics and players of this sector. For a better understanding of the strategic issues faced, this report addresses the different strategies developed by the two largest companies operating within the industry: Nestlé Purina and Mars Inc.
[...] For instance, in the EU, one of the biggest markets, new government regulations stemming from the Food Safety Modernization Act have a significant impact on the production. So regulation can increase the requirement for the production and make it more difficult in terms of offshoring, what will be explained later in this paper. Recommendation for the Production Issues It is necessary to understand that the pet care market is not a niche market anymore. New players are also attracted by this industry because the demand for pet care is also growing fast and strong. [...]
[...] As a result, we were able to develop recommendations and new ideas regarding all the four problems such as adapt your product and your price to each local market, produce with the higher standards, develop an ethical way to produce, cooperation with education institutions and collaborate with locals for knowledge exchange. These recommendations are for both companies. However, regarding Nestlé Purina's internationalization strategy, they should develop economies of scale, use more local ingredients to adapt their product, increase the range of products and invest in R&D centers dedicated only for Purina. Now for Mars Inc., they should create joint ventures with local players, develop customization for dogs and invest in their Waltham R&D centers. Bibliography 9 Square Ventures - Our Investment In Emerging Pet Care Innovations. (2014, July 1). [...]
[...] They usually sell their flagship product and broaden the range of products sold afterward. For five years, Nestlé and Mars Inc. try to implement in developing markets such as Russia, Brazil. Another advice from the book in this case is to be at the right place at the right time to have access to strategic input factors such as the know-how of the country, a lower wage, but to be on the relevant market will not always guarantee you a success. [...]
[...] (2014, October 1). Retrieved April from http://www.mars.com/global/press-center/press-list/ Mulier, T. (2009, October 25). - Bloomberg. Retrieved March from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aPyNCQnXADsE# Nestlé Annual Report 2014. (2014, January 1). Retrieved March from http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2014-annual-report-en.pdf Nestlé in society: Creating Shared Value and meeting our commitments 2014. (2014, January 1). Retrieved March from http://www.nestle.com/asset-library/documents/library/documents/corporate_social_responsibility/nestle-in-society-summary-report-2014-en.pdf Nestlé Purina nourriture sèche pour chiens rappel volontaire de contamination. (2013, December 3). Retrieved April from http://www.uupig.com/nestle-purina-nourriture-seche Nestlé Purina rappelle nombre limité de Purina ONE nourriture pour chat. (2014, August 27). [...]
[...] should try to produce as ethically as possible in order to prevent scandals. Innovation Issues Innovation Issues Faced by Companies Innovation can be the key to differentiate and create a competitive advantage for the company towards its competitors. In this case, Mars Inc. and Purina are the two most influential pet food companies on the market as mentioned above. The research and innovation centers for Mars pet food are set up in Germany (Verden), France (Aimargues) and the United States (Tennessee). [...]
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