This company is utilizing distinction scheme compared to other companies in the market because it uses different corporate name ( DON DON ) and trade name name ( TVOIH 5 MINUT ) . Because of long being on the market. DON DON become experienced in pastry production. and it’s continually developing and researching to better quality and production procedures. Furthermore. this company has taking place in the fresh sweet pastry section and successfully to increases its market portion in the healthy nutrient section. DON DON has many other strengths compared to its rivals. like: strong relationships with distributers and retail traders. experienced. capable and extremely committed employees. improved and recognized trade name name and logo. big portion in Slovenian market and presentence in most Balkan states. client oriented company. quality and fresh merchandises. maintain up-to-date tendencies. has its ain web page. etc.
The chief failings of DON DON are: it loss two co-fondators of the company which can loss of original spirit and vision and tonss of long term liabilities and high debt ratio which will be job for funding new liquidness for investing.
2. Identify DON DON’s beginnings of competitory advantage.
Competitive advantage is an advantage a company has over its rivals which allows it to accomplish higher rates of Return on Equity ( ROE ) . The resources in a company thrust competitory advantage. A extremely skilled work force or a merchandise design squad led by an acknowledged industry leader are resources that rivals would happen difficult to fit. Information is besides critical to competitory advantage. The IT system of Don Don is one of the major advantage of this house. They can utilize that in order to take better determination and understand better the consumers. They besides be able to accommodate them-self quicker than the rivals if there is some alteration in the market construction. But all this informations have a seashore and the company necessitate a good fiscal wellness in order to maintain this database up to day of the month. The intense R & A ; D is besides a large advantage. With the nexus between the IT system and the R & A ; D service Don Don can ever introduce in order to be one of the first to sell at the client what he wants when his demands and wants alteration. Besides. because of the trueness of clients toward trade name name. Don Don is able to alter the concluding monetary value.
3. Try to place the chances ad menaces for investigated markets. •Italian market
Opportunities: Italy is the 2nd largest consumer of adust merchandises in the part. Furthermore the Western Europe part is a immense consumers of adust merchandises and the market is mature. Italy specially consume high quality pastry and Don Don is really successful in this section. Menaces: The monetary value competition is really of import and the mediators system is really complex which can increase the monetary value. Furthermore Slovenian trade name have a low image in this state. Yet. Italians are rather minded and ever prefer their ain traditional merchandises.
•German and Australian market
Opportunities: This market like the Italian market is besides really large with a large GDP. Anyway. compared to Italian market. in this market some sections still have possible development. Finally. every bit same as Italian market there is no currency hazard because of the Euro. Menaces: Difference of civilization and the high entry barriers make the market incursion hard. For this two markets. Italian and German and Australian. a tonss of advertisement are needed and the hazards of fail is really high because of high competition.
•Visegrad group of counties
Opportunities: The competition in this part is really low compared to old markets. Besides the addition of the GDP is higher than in Western Europe and the development potency excessively. Furthermore some of this state like Poland. Hungary and Slovakia have a positive growing of the volume of retails gross revenues of bakeshop merchandises between 1998 and 2003. . At the terminal. The local companies are really unfastened to new chances so it will be easier to happen spouses at that place in order to take advantage of their experience. Slovenian company have a good repute in this market and the civilization. Menaces: Originally composed of a batch of little makers the market is altering ( “the market was easy consolidating as transnational manufacturers were deriving scale” ) and it will be a menace for Don Don before the large multinational have a batch of money to occupy the market really rapidly. That s why it will be easier if the company travel at that place rapidly.
4. Propose the most sustainable market where DON DON should prosecute international growing and briefly explain why.
In my sentiment the most sustainable market where DON DON should prosecute international growing is the Visegrad group of states. There are many grounds why I choose this one market. First of all. Italian. and German and Australian markets have many menaces for a company which is non financially strong plenty. Second. the incursion of the market of Visegrad group of courtiers will be easier and less expensive. Third. Slovenian merchandises have good repute in this market and these two markets have similar civilizations. Fourth. people in Slovenia and Poland have similar consumer wonts. They are really busy and don’t like to pass excessively much clip in the store and the experiences of Don Don in packaging for its merchandises will be large strength.
At the terminal. I think that the first market that should be entered in Visegrad group of states is Poland because it has the highest ratio of unemployment. which leads to moo labour cost. or the Magyar market because its little market. Further. for a distribution channels is best to happen local spouses because they already know the market.