The case of a Slovenian Gazelle
As said Mozetic, there are three groups of potential market segments for the international expansion of DON DON. The first one concerns the Italian markets, the second one includes Austria and Germany and finally the last one concerns the Visegrad group of countries (Hungary, the Czech Republic, Slovakia, and Poland). So we will focus our analysis on these countries.
* In 2005 DON DON was among the leading suppliers of fried pastries on the Slovenian market. * DON DON has got a great capacity to recognize customers needs and wants, which permit to offer tailor-made products and services. * He managed to differentiate by becoming the first Slovenian bakery …show more content…
First of all, let’s see why it’s not the good solution to concentrate his activity on the Italian or German and Austrian markets. First, in Italia the market is saturated due to the high number of competitors in the market. And then in Germany and Austria, there is not a good attraction about bakery products (pastries and cakes) and the main factor is that there are many enter market barriers that will impose to DON DON to invest a lot to go over them.
So the Visegrad group market is a good solution and particularly it will be interesting for DON DON to enter the Hungarian market. The main reasons are, the geographical proximity, the similarity of food consumption habits and culture, and population has a good perception of Slovene brands. Moreover, consumers on this market are attracted by innovation on the product and on the packaging. So, that is an opportunity because DON DON invests a lot in R&D so they will be able to innovate a lot and, in the same way, answer to the customer needs.
In another hands by analyzing the number, Hungary has got an important GDP growth and the GDP per capita is interesting. Especially, this country has got an important sales value per capita about bakery products, which show that they are many potential consumers in this market.
Which market entry mode? DON DON doesn’t have a good expertise in international markets. The best