International Market Kudler Fine Foods Is an Essay

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International Market

Kudler Fine Foods is an Italian cheesemaker seeking to expand into France. There are a few reasons for this choice of country. The first is that France is also in the European Union, so there are no legal differences in trade between the two countries. The second reason is that France is a good market for cheese. With a consumption rate of 25 kg of cheese per capita annually, France's consumption is slightly higher than that of Italy (No author, 2011). Like Italy, the French market is mature and sophisticated, but it also has a higher percentage of cheese as an industrial ingredient, which could help Kudler capture volume if the company is able to produce enough cheese to enter this part of the French market.

The French market is also large, in terms of population, with 65 million people. The market is centered on Paris, which provides Kudler the opportunity to center its distribution on that region initially. Given that Paris is also a major media center, it is a natural place to begin market entry into France.

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There are many trade shows concerning cheese in France, which will help Kudler to establish its name and then build out distribution networks across the country. The French economy is better than that of Italy as well, making it an attractive market in which to enter. France's GDP is $2.145 trillion, slightly ahead of Italy's, and the per capita GDP is $33,100, again slightly better than Italy's (CIA World Factbook, 2012). France's GDP is growing at a slow rate, but the country is in better financial shape than is Italy, which is at risk for higher interest rates on its sovereign debt and an austerity program that could choke off the economy. Thus, entering the French market is a means of hedging against a slowdown in the Italian market.

Staying within the EU is also something that will benefit Kudler at this point in time, for a couple of reasons. The first is that entering a new market is challenging at the best of times, with a host of issues to….....

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