Globalization: Wine and Spirits in Tunisia - Case Study Example

The company seeks to use this entry market strategy so as to sell its wine and spirits products owing to the cultural and political environment in Tunisia may not be that favorable to set a manufacturing company at the moment. The country is, in most cases, marred with constant violence and interreligious wars animosity (Angel-Urdinola et al., 2015, p.67). The deep-rooted Arabic culture and language may not also favor foreigners who have little or no mastery of this environment. It is, therefore, advantageous if the manufacturing industry is set in a different country and goods supplied to consumers through intermediaries based in Tunisia who understand the diversities of the local market.

Solving the Global-Local DilemmaThis strategy will largely help to solve the global-local dilemmas that the country is likely to face such as cultural issues, language barriers, lack of raw materials, and political interferences among others as the intermediaries are able to come in between the producer and the consumer and facilitate the free flow of the products. The agents are able to effectively inform both the buyer and the exporter about issues concerning the products based on first-hand research (Hisrich, 2010, p.98).Tunisia’s policies on trade instruments such as tariffs, quotas, and taxes among others simplify the business process.

There are limited stringent rules that block foreign investors as the government encourages international investment to promote the economy. There are no meaningful barriers to market entry and this would work to the benefit of the organization.Value Chain ActivitiesThese activities will be based in two countries; manufacturing and the targeted country. The research was done in both the targeted market and the region the factory is to be set. Raw materials will be received from the manufacturing country in U.

S and production done in the same State. Marketing and delivery, however, will be done in a different country (Tunisia) through agents. Any other activity will be handled based on its nature.ConclusionThis business is viable and it is recommendable to set it. The market and competitive strategies designed for its success will surely see it through. The market demand for Wines and spirits is quite large that such a factory would earn considerable revenue if the plans are implemented effectively.