Frito lay case analysis

Frito-Lay is a familiarity that came into existence when Elmer Doolin and Herman Lay, both entrepreneurs in the chomp food industry, interconnected their companies in 1961. When the company again merged in 1965, this time with the Pepsi-Cola Company, it became a leader in its food trade segment. With its largest and main market becoming saturated, namely the USA, it was time to attend for new markets abroad. With the company trying to capitalize from its economies of scale and world(prenominal) brand image it believed it could compete with local anaesthetic competitors. Pepsi entered the Chinese market in 1981 to sell soft drinks, and Frito-Lay followed in 1994. So far, the performance has been a success for the company and revenues show it.
The approach that Frito-Lay use to enter the Chinese market was mainly polycentric, in another(prenominal) words, with a number of centers of growth and development and with more than genius re harvestive organ. This was the case because they knew that it would be necessary to adapt Frito-Lay products to the Chinese culture. For example, Cheetos sold in China dont contain cheese due to the fact that Chinese lot have the trait of being lactose intolerant, so in order to avoid health problems the flavor of the cheetos was changed to a cook out and seafood flavoring.



Also we can see that the approach was polycentric because they adapted the product to each state due to the fact that in china large number from each state have different preferences, in some states people prefer sweeter foods while in others people prefer a meaty taste. To summarize, Frito-Lay found that the Chinese market is not a single entity. Being a very large market with a very large consumer basinful it became necessary to adapt the product to the different regional tastes and preferences. The company had two options when entering the market, one involved buying the local competitor with the highest market share, and the other consisted of large investments to simply loom the local competition. In the case of...If you want to get a full essay, order it on our website: Ordercustompaper.com



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