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- 1. CAGE Analysis : UAE& CANADA Group 2, Section A
- 2. Introduction CAGEAnalysis Diamond & Double Diamond Entry Strategy Expansion Strategy
- 3. Introduction Industry : Frozen Meat and Meat Products Home Country : CANADA Target Country : UAE
- 4.
- 5. Cultural Attributes • Restrictionon meat consumption - Pork • Restriction on processing of food - Halal • Barriers on eating of food for one month. • Sensitivity towards local language. • Local delicacies (camel meat) • Tendency to shop more in the hypermarkets. • Eating habits (18 times more than the global average).
- 6. Administration & PoliticalAttributes • The clause of sponsorship (51% ownership is with locals) • Halal meat certification • Existance of MOU between Canada and UAE • Food security is a big concern for UAE government as it relies on imports • Sensitivity towards packing of the imported food (language & quality) • Absolute monarchy (leads to high risk)
- 7. Geographical Attributes • Geographicaldistance • Climate in UAE • Cold supply chain • Telecommunication • Logistics • Port infrastructure
- 8. Economic Attributes • Developingtourism industry • Higher standard of living • Competition from already existing players from USA & EU • Ease of re-export to the Middle East and Asian countries • Local Demand > Local Supply : Import Oriented • High inflation rate will lead to reduction in import duties • Presence of global food chain in UAE
- 9. Weighted & DoubleWeighted Score Score Weightage Weighted Distance Type obtained 0 to 1 score Cultural 5.14 0.40 2.06 Administrative & Political 6.05 0.24 1.45 Geographic 6.69 0.16 1.07 Economic 7.82 0.20 1.56 TOTAL COUNTRY DOUBLE WEIGHTED SCORE 1.00 6.14
- 10. Expansion Strategy Existing Market Market Product Penetration Development Market New Market Diversification Development Existing Products New Products
- 11. Advantages Life stock isprocessed and packed in our home country and hence there is no need for new investment in target country This reduces the operating cost in the overseas market We get an opportunity to get a first hand experience
- 12. LiveStock Processing and Packing Restaurants Cold Retailers Storage Fast Food Aviation Chains Industry
- 13. Porter’s Diamond anddouble diamond
- 14. Chance Firm Strategy, structure and rivalry Factor Demand Conditions Conditions Related and supporting Industries Government
- 15. Demand Conditions Factor Analysis Canada has high skilled labor People eat a lot of meat in ,well developed infrastructure Canada like cold chain and specialty machine 25kg per year pre person Capital recourse in high
- 16. Government Chance MOU between provides better Diseases among the animals trade channel Government is supporting R&D in meat industry Slaughter Labor strike Waste Innovation Program
- 17. Related and Supporting Knowledge Industry Good processes in place Presence of strong supporting industries- Cold Storage, logistics, chemical, spices, packaging , restaurant and Good knowledge recourse retail.
- 18. Entry Factors • Halalcertification • Sponsorship (51% stakes owned by Emirati) • Tie up with a local logistic provider (outsource logistics) • Outsource Cold Storage facilities • Hire local legal consultant for contract related issues and legal implications • Invest in the office infrastructure to co- ordinate the operations with the head office
- 19. Advantages of themodel • Outsourcing of the cold storage facility reduces the infrastructure investment in the unknown territory and hence risk is mitigated • We can concentrate on our core competency and maintain good quality • Outsourcing logistics will enable us to exploit the local expertise
- 20. Saudi Arabia Oman Bahrain Kuwait Qatar Abu Dhabi Fujairah Dubai Ajman Sharjah Umm al Ras Al Quwain Khaimah