An international expansion plan for Ferrero Rocher Essay

An international expansion plan for Ferrero Rocher - Essay Example International business expansion strategy has become one of the profitable and important business growth strategies of several leading multinational business organizations. There are several advantages of international business expansion. Organizations can increase its market share through the help of global expansion strategy. In addition to this, multinational organizations can develop potential client base around the globe through this strategy. Major objective behind this internal expansion is to maximize business profit (Blenkhorn and Fleisher, 2005, p.76). The market demand and test or preference of the customers for global products is increasing significantly due to the significant effect of globalization and technological advancement. However, the organizations’ business expansion strategy can get affected due to several risks that are associated with the business operations in international market place. Ferrero Rocher, an Italy based spherical chocolate sweet has bee n chosen as a product for the assignment. The organization is planning to introduce this product in the potential South Korean market. This assignment will determine the business environment of the host country and preferred market entry mode for Ferrero Rocher. A description of the product Ferrero Rocher is one of the popular spherical chocolate sweets. This particular product has gained huge popularity among several regional and international customers. This product is made by a popular Italian chocolate producing organization named Ferrero SpA. Ferrero Rocher was introduced in the Italian market in the year 1982. The chocolate consist of roasted hazelnut. It is encased in a unique thin wafer shell that is filled with vegetable oil and hazelnut cream. This specific chocolate sweet is covered in chopped hazelnut and milk chocolate. Each and every sweet item contains 73 calories. In addition to this, each and every sweet item is packaged individually insider an attractive gold-colou red rapper. The product already has presence in several emerging international market. This specific product achieved huge popularity among millions of people around the globe due to its quality and taste. The product is considered as the leader within the industry and in its category. Effective quality control, innovative shape, original recipe, unique advertising campaigns and refined packaging attract the global customers toward this product (Ferrero, 2013, p.1). It can be stated that the creamy filling, delicious hazelnut centre and crunchy wafer increased the demand of this product. In addition to this, the organization implemented economic pricing strategy for the products. These products are often identified in the retail chains, stationary shops and confectionary stores. A description of the organisational context Ferrero Rocher is the product as well as the brand extension of parenting company Ferrero SpA. Ferrero SpA is known as one of the leading and popular Italy based m anufacturers and distributors of the chocolate and other confectionary products. The organization was established in the year 1946 by famous confectioner Pierto Ferrero. The organization is headquartered in Alba, Italy. The founder of the