Benecol in the Us - Step 1 of Global Expansion

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Max Smith The article “ Benecol in the US – Step 1 of global expansion “ ( BUSINESSWEEK: May 5, 1997) tells the story about the globalization of Raisio Groups product Benecol margarine and how things did not go according to plan. Benecol margarine had been a success story in it’s home country of Finland but did not live up to the expectations of the Raisio Group and their partner McNeil Consumer Products when the product went global. There are many reasons why the globalization process did not excel as it was planned and it is something we will take a closer look at later in the essay. Another key issue in the case is the role of Rabbe Klemets, the new CEO of the Benecol division. It was partly Klemets fault why the globalization did not produce the outcome that was expected. What should Klemets have done differently and how could he correct the errors that were made? We will also take a closer look at how Raisio decided to take their product global. Did Raisio use a global standardization strategy, localization strategy, transnational strategy or an international strategy? The first problem that Raisio faced when they decided to take Benecol margarine global was their lack of experience of taking products global. Another problem was that the Benecol margarine was a fairly new product for Raisio that meant that they were unsure how to take the next step in the margarine market. Raisio decided with the help experienced professionals that the best way to take the product global was to find a “global partner for market penetration”. This strategy is commonly used when small companies with small markets want to make their product global and need the help of an established global company or when larger companies don’t want to produce subsidiary products them selves for example Apple. The advantages of this strategy are that the consumer recognize the global

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