Question

Your company, a white goods manufacturer (primarily major kitchen appliances) based in the U.S. has decided to pursue international expansion opportunities in sub-Saharan Africa. In order to achieve economies of scale, your strategy is to limit local adaptation. Choose 2 sub-Saharan countries, prepare an executive summary that features aspects of the product where standardization will simply not be possible and adaptation to local customs will be essential.

Answer 1

Any organisation goes in for international expansion with the aim to capture the potential customer base which also helps to attain economies of scale and extend the life cycle of the product bye acquiring new customers. Another focus is 2 optimise the location for every activity based on available resources so as to reduce input cost and risk while enhancing performance. Every organisation has to face certain risks naturally associated with international expansion which maybe economical and political risk, currency risk and management risks. These risk associated with difference in traditions and culture, customs, language, the per capita income, preferences and infrastructure.

Considering that sub-saharan Africa is an area by many of the Nations are low on development as well as have a marked population below the poverty line, Egypt and Morocco would be 2 of the best Nations to enter into for a manufacturer of kitchen appliances. These two countries have robust economies and growth rates as well as similar food traditions which will have a major impact on the type of kitchen appliances utilised. The major aim of the company is to Limit local adaptation these two nations are an excellent choice as what of the appliances which can be primarily used for cooking can be marketed in these countries with minimum or no alterations and adaptations.

Both Morocco and Egypt have bread as a major part of the staple diet hence the appliance used for baking of this bread is very important. This is one cultural aspect where standardization will just not be possible as the Tanuur which is used for baking of this bread is a special mud pot and no oven can match the taste and flavour off the grid that is cooked in this manner. Hence any product which is to be used for the bread making has to be accordingly modified to match customer expectations. Adaptation and innovation will be the key for an appliance customised to meet this particular requirement and a major advantage would be that this product would be suitable for both the nations. Another product standardization will not be possible but which may only require certain modification is the pot in which the de facto national dish of Morocco couscous is cooked. It is deemed rather than boiled as in North America and considering the importance of this dish and its widespread use it would be worthwhile for any business to consider offering a tailor made solution. Any stove which has to be marketed in sub-saharan Africa has to be not only study but the surface should be capable of withstanding hi temperatures. This is because both Morocco and Egypt use a variety of special clay pots for cooking certain national dishes. As this creates a lot of dissipation of heat write about the surface of the gas range the surface material in case it is made of glass should be highly resistant to heat else the material used should be metal. Another factor which will need to be kept in mind regarding manufacture of kitchen appliances for these Nations is that the joint family culture is very much prevalent in both the countries. Hence, it becomes essential that all of the appliances should be of a size and capacity which takes into consideration this factor. Also the life of the appliance will be much more important than the appearance of it so durability should be a special focus for these nations.