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Ceylon Biscuits

Global Presence

Background
Overview With over 40 years of experience, innovation, technology and quality are the guiding principles behind everything we do in achieving our vision of becoming the No.1 biscuit, chocolate and confectionary manufacturer and marketer in Asia, while developing a global presence and recognition. Threeposha , High nutrition biscuits for CARE project.

Background

Strategic capability in local context


This encounter was the first of aseries of "small wars" by CBLagainst Maliban's turf Tikiri Marie, Lemon Puff (2001) and Super Cream Cracker (2002) allthese campaigns came under this strategy where CBL focused on a specific product and aimed to gain market leadership in the category.

performance

Need for expansion


Vision of a charismatic leader by Futuring & Visioning Restrictions in expanding local market (War, Political turmoil) Competition CBL's greatest test will be when the Indo LankaFTA final phase permits Indian biscuits to be imported duty free beginning 2007.

Identification of Expansion Stratgy

Global Standardization Strategy


One global strategy is the global standardization strategy, which focuses on increasing profitability by reaping the cost reductions that come from experience-curve effects and location economies Firms pursuing a global strategy are attempting to be cost leaders

The production, marketing, and R&D activities of companies pursuing a global strategy are concentrated in a few favorable locations
Global companies do not customize their products and marketing strategy to local conditions because customization raises costs Instead, global companies market a standardized product worldwide so that they can reap the maximum benefits from the economies of scale that underlie the experience curve

Going Global
The company is also increasingly open to looking at new opportunities, an example being manufacturing for Italian chocolate maker Ferrero. abilities as a business partner. CBL in turn hopes the association will expand its knowledge base through contact with the 60 year old Italian family business. Exports to the UK, Middle East and Canada are mainly to the so called ethnic markets catering to the Sri Lankan diaspora, but in other countries demand is slowly establishing into in the established biscuit market through chain distributors. While most exports are under private labels that it, outsourcing for foreign biscuit There are four accepted methods for a company to enter a foreign market: exports, licensing, joint ventures and direct investment, which often represent an evolution inthe degree of interest the company develops once it is present in the market.

disappointment In India

Despite a Free Trade Agreement with India, and a reduction of duty to 3%, the state sales tax in Tamil Nadu was increased by 8% for imported goods effectively nullifying any duty concessions