Internationalisation of Whole Foods Market Company - Essay Example

INTERNATIONALISATION OF WHOLE FOODS MARKET COMPANY Introduction Geographical boundaries are no longer playing any role in the determination of emerging business aspirations for companies. The growth and expansion strategies for any business organisation must be on global visions (Coviellon& McAuley 1999). Pricing, quality of product and service, supply as well as distribution must compete globally and designed to meet customer expectations. This process has become easier through the global technological advancements such as the rapid expansion of the internet to enable cross-bourder business transactions. The process according to Oviatt & McDougall (1997) has also become easier through advancement in telecommunications, video conferencing as well as satellite technology. Netherlands as the Best Market for the Business The location and logistical system of the country, its wide strategy of innovation and the proper organisation between the private and public sector creates a very friendly environment for companies that intend to operate in the country. In addition, good culture on creativity, coordination as well as reliability, exceptional economic conditions and a leading technology sector in terms of agro-food, the country is capable of providing the most important incentives for innovation and a choice for the business (Van der Meer 2007). Netherlands is suitable for the business since the country has a developed, prosperous and outward looking financial system that has recognition for having very stable industrial relations, modest rate of inflation and satisfactory equitable distribution of income in the country. Historically, government intervention in business activities has been very low. In addition, the workforce in the country is well educated, trained, flexible and highly motivated to produce the highest level of profitability in business operations. Above all, language barrier is not a serious problem since the country is one among the main multilingual in the globe (Arndt & Kierzkowski 2001). Having more than ten percent of the gross domestic product (GDP) and more than twenty percent of the industrial exports, whole food is among the most profitable sectors in the country. The government recognises the whole food as one of the most important sectors in the country. The sector is one among those, which gets a priority from all private as well as public stakeholders with a combined strategic planning that aims at achieving social, sustainable as well as economic targets. The whole food chain, right from the seeds to the consumer, has an extremely strong appearance in the country (Tansey & Rajotte 2008). In each category of the chain, there are international companies that are operating. All the categories in the chain are very interactive and therefore any particular company that is active in a particular category can work together with another company that is active in another category. Companies are therefore capable of investing beyond the normal in R&D leveraging the outstanding information infrastructure for innovation (Nationale Beeldbank 2011). The information infrastructure of the country is among the best in the globe. Wageningen University, Research centre and through the Top Institute Food and Nutrition, the public versus private innovation program among others contribute to this phenomenon (Keizer, Dijkstra & Halman 2002). In addition, there are a good cross-disciplinary interactions as well as cooperation with about eight medicinal university centres. The country’s genomics scheme has various dedicated genomic centres throughout the country. The government provides great support to all the whole food associated activities in both private and public partnerships, innovation strategies and devoted support organisations like the Food Valley. The government also supports the whole food sector by investing heavily in education in its widest sense (Janssen, Kuk, and Wagenaar 2008). The country’s workforce is among the most educated, motivated and flexible in the European region. The country’s professionals are amongst the most multilingual in the globe. This means that they are capable of operating in companies in any industry and serving customers from almost every country in Europe. The law of Netherlands allows companies to contract the possibility of procuring employees in a flexible manner. The official language of the country is Dutch that almost all the people of the country speak. The Dutch as pointed earlier have the culture of learning foreign languages and about ninety percent of the people can speak the English language. Other popular languages are French, German and Spanish (SIS International Research 2015) The country, long trading crossroads of Europe, is a clear option to locate a pan European company (Bigliardi, Bottani & Galati 2010). This is whether it is a European headquarters, a joint centre for services, a centre for customer care, a distribution or logistical business or R&D facilities. The country’s business atmosphere establishes an avenue to Europe that enables international business organisations to perform well throughout the European region. The international image and its openness to foreign investments strongly constituted in the culture of the people of Netherlands. This has produced a large group of excellent business partners who have the knowledge of dealing with international business challenges in the modern economy. The Rotterdam port is the biggest and most significant seaport in the European region. The Schiphol airport has the reputation of being the best in Europe for the transport of passengers as well as cargo. Netherland is among the most connected countries in the world having a very dynamic force in commerce, electronic, communication as well as outsourcing (Van Klink & Langen 2001). Netherlands is open for all types of business activities, innovation, development and cross-disciplinary cooperation, which these contribute to business growth and expansion. New companies will see an unparalleled atmosphere that is supportive to innovation strategies. The country’s whole food chain will expand significantly because of their occurrence. The country offers a special perception for foreign whole food companies, which include various gorgeous location features (Van Geenhuizen & Gonzalez 2007). The country’s system of taxation has various features that are very beneficial in tax planning for international business. These features include a twenty percent corporate income tax on the first two hundred thousand Euros and a twenty five percent for all the profits greater than two hundred thousand Euros. Furthermore, the ruling practice of the country provides simplicity and confidence on tax positions in the future. Concerning R&D, business organisations are able to benefit from the innovation pack, which makes an effectual corporate tax of five percent only. There is also the R&D relief that is in the form of a wage tax as well as contributions on social security (Nationale Beeldbank 2011). The country is very suitable for the conduction of export trade. The presence of various intermediaries in the country that facilitate the process of exporting products will allow the company to substantially, benefit from their services. For example, the Commercial Service of the United States continues to offer very significant service to help all United States companies to export products to and from Netherlands. The organization, organises trade occasions for promoting the sale of United States products in the country. In addition, the organisation assists United States companies to locate sales and distribution agents in the country. The process of conducting indirect export of products is therefore very easy with the utilasation of the services offered (Hessels & Terjesen 2010). In addition, the country allows for direct export of products through its efficient and stable currency system with moderate rate of inflation. The future currency changes of the country are thus very predictable and hence the company can easily, conduct direct export of its products confidently without the risk of loses occurring because of changes in exchange rates. The availability of an online exchange service means that the business is capable of conducting good management of its exposure to foreign exchange that has the potential of managing the risks, protecting profits and improving the flow of cash (Soskice & Iversen 1998). Netherlands Foreign Investment Agency is promoting the country to successfully, become the foundation for international business activities. The organisation has the responsibility of assisting foreign companies in establishing new subsidiaries or expanding its operations. Once a foreign company expresses its intention of establishing its operations in the country, the organisation provides the company with the basic facts, the economic and statistical information. It also assists the company in identifying the best site for its operations. The organisation also provides answers to the new company regarding the incentive policies provided by the government of Netherlands. Lastly, the services provided by the organisation are free and very confidential (Mondragon et.al. 2006). Marketing strategies Netherlands provides equal opportunities for all companies operating in the country. This means that competition in the industry is very high and therefore proper marketing techniques must be in use. The success of the company will only depend on its ability to influence consumers to buy its products. The management must adopt marketing strategies that can match the behaviour of consumers in the country. First, one of the major approaches that the management of the company must consider and deal with is language barrier. Though the process of translating the major operational and marketing materials may look simple, marketing may present unpredictable difficulties if the process of translating does not go well (Rauch 1999). The management must ensure that the names of the products, concepts as well as the slogans convey a meaningful message to the consumers. The management must also ensure that they comply with the language as well as the culture of the target group of consumers (Bell, McNaughton & Young 2001). Although the company is not originally born in Netherlands, it is possible to make the company look very natural to the people. This will influence the buyers in the country to accept the company as if it is their own. For example, good name that reflects to the culture of the people of Netherlands will make the consumers feel respected and hence develop positive feelings in favour of the business. This will also help enhance the consumer loyalty that is very desirable for the growth of the business. The management must also be capable of focusing on the largest group of consumers. In the country, consumer choices and preferences may vary depending on their needs and requirements. The consumers in the country have similarities in the manner they behave and therefore the company must focus on the largest portion of them. This will ensure that the company can grab a large market share and expand its operations. To focus means that the consumers must be made to believe that the products offered to them truly target them and aim at satisfying their needs. This will enable the company to gain a very high reputation in the eyes of consumers and thus growth and expansion (Oviatt & McDougall 2005). Obviously, there are many players in the industry and the company may supply goods that other players are also supplying. This means that the company must introduce some measures to make its products unique and different from those supplied by other players. This can happen only through differentiation of the products. The process of differentiation helps to make similar products appear different. This will enable consumers to identify the products offered by the company and helps attract consumer loyalty. Differentiation of the products will reduce the consumer choices and hence reduce their sensitivity to prices. Differentiation can occur by adding unique features to the products. The features must not look similar to the features used by the other players. This can be through the manner of packaging, colour, name and the shape. This will help pass information and eliminate any possibility of imitation by the close rivals and hence the market share will remain (Chaudhuri & Holbrook 2001). The company can also gain competitive advantage and perform well by operating at the lowest costs by making its operations more efficient. When the costs of operations are lower relative to the rivals, the firm can benefit in several ways. First, the company can sell its products at the same price as the rivals and earn more profits. This means that the company maintains the same market share but make more profits. Another way the farm can benefit is by lowering the prices relative to its competitors to expand its market share. Cost reduction is therefore one of the best strategies for gaining a strong competitive advantage meaning that the firm must always be looking for new ways of doing things in a better manner (Porter 1974). The consumers must get what they want easily without struggling. The company must embrace an attractive way of displaying its products with the best guidance to consumers. This will enable consumers to spend the shortest time in the premises, which obviously is going to attract them repeatedly. The idea is also going to eliminate congestion within the shopping mall that in turn will also help attract buyers into the premises (McCracken 1986). The name of the company must always remain in the memory of consumers. This will make them remember the company every time they want to purchase their commodities. This is only possible by ensuring that the consumers can hear, feel and smell the name of the company as many times as possible. Properly designed adverts can help achieve all this and build customer loyalty. Advertisement will also help pass information to consumers concerning the suitability of the products offered by the company. This therefore means that the company must employ experienced individuals when designing its advertisement programs. The adverts must also be unique, convey the right message effectively and within the shortest time possible (McCracken 1986). The company must make proper arrangement to ensure steady availability of goods to consumers. The consumers must always get what they want and therefore there should be no delay or interruption in the provision of goods to consumers. The company must contract reliable suppliers who are capable of supplying the right products at the right time. This is because when consumers fail to find what they need then obviously, they will look for somewhere else to buy their product. This in turn will adversely, affect the business (McCracken 1986). The company should embrace an online marketing system to help expand its market and popularize its name. The company should also use the social media as a means of interacting with consumers and monitoring consumer feelings about the operations of the company. The social media will help get quick response from consumers and pass information to them at the lowest costs. Online marketing system will also enable consumers what the company has in its premises, the mode and the terms of delivery of goods (Janal 1995). At any time when the company intends to open a new branch within the country, it has to consider the suitability of the location in terms of market concentration as well as the availability of supplies. This will help the company to operate strategically without any form of interruption. The management must know and asses the strength of the competitors in the location to help come up with plans that match the prevailing conditions (McCracken 1986). Conclusion Netherlands is the best country for the company to establish itself as part of its effort of operating in many countries. The country is well prepared with all the incentives for multinational companies with no cultural, technological and institutional barriers. Bibliography Arndt, S., W., & Kierzkowski, H. eds. 2001, Fragmentation: New Production Patterns in the World Economy: New Production Patterns in the World Economy. Oxford University Press, Oxford. Bell, J., McNaughton, R. & Young, S. 2001, "‘Born-again global’firms: An extension to the ‘born global’phenomenon." Journal of International Management, Vol. 7, no. 3, pp. 173-189. 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