Fakruddin Food: Which Way to Go?

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Problems: Foreign Market Expansion

Fakruddin Food generally provides traditional foods for the people and the foods prepare with too many spices. In the USA and UK, people generally do not like too many spices. For the different country perspective, the Fakruddin faced different problems, which are:

- Taste and Preference: Taste and preference is the main obstacle for the Fakruddin to expand its business in the different part of the world.

- Culture: Culture creates a direct impact on the food pattern of the people. For this reason, the different culture shows different food habit.

- Religion: People of the different religion have their own notion about the food; like in Islam, pork is Haram.

- Law and Regulation: Law and regulation of the different country create obstacles for the Fakruddin Food, like in the UK; the law is very restricting about environmental pollution.

- Changes the Market Condition: Market condition is continuously changing over the time, so the Fakruddin needs to continuous improvement to adopt the changes in the market.

- Economic Condition: Economic condition of the country is very important. If the country has a recession in its economy, it will not a good condition for the Fakruddin to get into the market.

Opportunities: Local Market Expansion

- People are more conscious about the hygiene factor

- People loves pre-cooked food

- Most of the people are very busy

- People need quality food

- Price does not matter if the quality of food is good

- More Concern about their health

- Education institutes students

Solution: Foreign Market Expansion

- STP (Segmentation, Targeting and Positioning) Method: The Fakruddin uses the method for segmenting the different market into small segments. So, it’s become easy for the Fakruddin to select a segment, which the company maintains efficiently. After targeting the market, the Fakruddin introduced different positioning methods to attract the customer and placed a positive view about the company.

- Unique Culture: The Fakruddin should develop a unique culture in its organization, so the customer has equal cultural support from the company.

- Knowledge about different legal system: Fakruddin Food should acquire knowledge about different legal system, so it becomes easy for the company to adopt the legal system.

- Forecasting in Market Changes: The market changes create both the threats and opportunities for the Fakruddin, so the Fakruddin Food management should forecast in the market changes.

- Innovative Product: Fakruddin tries to innovate more product mix with lots of variety to attract the foreign customer, because the taste and preference of the customer rapidly change over time.

- Review site: Fakruddin should have a website to maintain its all information on this site, so the customer can easily gather the information about the Fakruddin. The Fakruddin also tries to make a positive review on the social site, so it may have a positive image with a large amount of customer.

- Home Country People: Fakruddin should develop most of the branches where it has many South Asian people, because they are the most attractive customer for the Fakruddin.

How to Develop Solution and communicate with solution

Before developing the solution, the Fakruddin Food should analyze the different factors of the market, which are directly or indirectly, affected the company. So, the Fakruddin should develop SWOT analysis and Pestle analysis to evaluate the macro and micro factors of the Fakruddin. If the Fakruddin develop a solution, it should test to find out the different lacking. After implementing the lacking, the Fakruddin Food can imply the process. The Fakruddin should maintain its different stakeholders, suppliers, employees, partners etc. So, the Fakruddin should regularly communicate with those groups of people about the future plan of the business.

Local Market: The solution worked for the Fakruddin, because it develops a sustainable plan to expand its market in the local area. Most of the local areas are crowed by a huge number of people, so it is easy for the Fakruddin to capture a huge number of customers, which help to generate its economies of scale to produce the products efficiently with good quality. The different types of food with good quality create competitive advantage for the Fakruddin.

Foreign Market: In Foreign market, the Fakruddin faced less competition than the local. But, the Fakruddin Food should adopt the foreign market to expand its business. In this situation, the South Asian customer becomes a lucrative segment for the Fakruddin, so the Fakruddin should develop the branches in those areas where most of the South Asian people live. Foreign people also like to teste new food item, so it is also a profitable segment for the Fakruddin.

Analysis the Different Countries Economic Condition:

Economic condition of USA:

Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest and most important in the world. The U.S. economy represents about 20% of total global output, and is still larger than that of China. Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP (PPP). The U.S. economy features a highly developed and technologically advanced services sector, which accounts for about 80% of its output. The U.S. economy is dominated by services-oriented companies in areas such as technology, financial services, healthcare and retail.

Even though the services sector is the main engine of the economy, the U.S. also has an important manufacturing base, which represents roughly 15% of output. The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals. Meanwhile, agriculture represents less than 2% of output. However, large amounts of arable land, advanced farming technology and generous government subsidies make the U.S. a net exporter of food and the largest agricultural exporting country in the world.

The U.S. economy maintains its powerhouse