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Eac Nutrition

Submitted by elisacutulle on July 13, 2006

Category: Business
Words: 4401 | Pages: 18
Views: 322
Popularity Rank: 29,108
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EAC NUTRITION: REGIONAL EXPANSION STRATEGY

Table of contents

Introduction……………………………………………………………………………………………………………..2

History of EAC………………………………………………………………………………………………………….3

EAC Nutrition……………………………………………………………………………………………………………3

Competitors & Market……………………………………………………………………………………………….6

Target markets…………………………………………………………………………………………………………7


Case questions
1. What are the economics of the infant nutrition industry? What capabilities do firm need to succeed in this industry?………………………………………………………………………………………..8

2. Evaluate the attractiveness of the expansion……………………………………………………………8

3. How might competitors respond to the adoption of the different expansion alternatives by EAC? How does this affect EAC’s decision?……………………………………………………………11

4. Which expansion option would you recommend to EAC? Why? What criteria did you use to evaluate these options?………………………………………………………………………………………16


Bibliography……………………………………………………………………………………………………………17






Introduction
The Senior Management of the EAC (East Asiatic company) planned to have a meeting to discuss the growth strategy for the nutrition business. This meeting should take place in the year 2002 and was mainly deriving from the aggressive corporate restructuring started in 1997 and focusing on the core business, i.e. nutrition on the Asian market.
EAC’s marketed products (all milk powder products for infants) are:
- Dumex
- Plus
- Mamex
- Mamil

It has resulted necessary to increase the consumer prices for these products, mainly due to the increase of raw material cost. This measure had weakened EAC’s position in Thailand and Malaysia, which were already quite saturated. The only competitive market seemed to be China.
...

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