...overcome in order to penetrate this market. First, BFF has little experience in export, as we can see in the text; its international experience has been limited to responding to occasional, unsolicited orders from foreign customers. Secondly, BFF has to solve many export sector problems. Like Austrade believes meat, cereal, sugar, dairy commodities, and marine products have the most potential for food processing. And Barrett sells macadamia nuts, cereal bars, garlic, ginger, dried fruits and honey. Europe also has many differences in national tastes, and market structures. Nevertheless E.U has an open market following many similar regulations. While Australians love Vegemite-a brown, salty breakfast spread made from yeast. Out of its boreder it enjoys little popularity 2. Why did Barrett choose exporting as its entry strategy for Europe, as opposed to foreign direct investment or licensing? What advantages does exporting provide to Barrett? What are the potential drawbacks of exporting for Barrett? Barrett chose the exportation instead of direct investment and licensing because there are several Australian brands already in place in the EU market. BFF sells nuts, cereal bars, garlic, ginger, dried fruits, and honey. All these products come from Australia, and for the European´s, Australia is perceived as an exotic & pollution-free as well as a producer of quality products. It is an advantage for Barrett. A kind of quality label, which can bear “Australian made”...
Words: 712 - Pages: 3