Professional Documents
Culture Documents
EMPRESARIALES
Topic:
Analysis of the company INAEXPO C.A and its internationalization process of canned palm
hearts to France
Authors:
Subject:
International Marketing
Professor:
Guayaquil, Ecuador
II
Semestre B - 2019
Index
Table Index...................................................................................................................................IV
Table of figures..............................................................................................................................V
Company.........................................................................................................................................1
Company Description................................................................................................................1
SME or LSE................................................................................................................................1
Product Range............................................................................................................................2
Product........................................................................................................................................3
Value Chain................................................................................................................................4
Raw material...........................................................................................................................4
Production and packaging.....................................................................................................5
Commercialization.................................................................................................................5
Distribution.............................................................................................................................5
Market............................................................................................................................................6
Orientation.....................................................................................................................................8
Type of orientation in the EPRG context.................................................................................8
Nine Strategic Window..................................................................................................................8
Reasons and triggers for internationalization.............................................................................9
Reasons to internationalize:......................................................................................................9
Triggers for internationalization............................................................................................10
Internal analysis...................................................................................................................11
External analysis...................................................................................................................12
Barriers for internationalization................................................................................................13
General Market Risks..............................................................................................................13
Commercial Risks....................................................................................................................13
Political Risks...........................................................................................................................14
Recommendations........................................................................................................................14
General Market Risks..............................................................................................................14
Competition from other companies....................................................................................14
Language and cultural differences.....................................................................................14
III
Commercial Risks....................................................................................................................14
Exchange rate fluctuations..................................................................................................14
Difficulties in obtaining export financing...........................................................................15
Political Risks...........................................................................................................................15
High value of domestic currency relative to export markets...........................................15
Complexity of trade documentation...................................................................................15
Internationalization model..........................................................................................................16
Distances with the target market................................................................................................16
Physical Distances....................................................................................................................17
Psychological Distances...........................................................................................................17
References.....................................................................................................................................19
IV
Table Index
Table 1.............................................................................................................................................1
Table 2.............................................................................................................................................2
Table 3.............................................................................................................................................2
Table 4.............................................................................................................................................3
Table 5.............................................................................................................................................6
Table 6.............................................................................................................................................9
Table 7...........................................................................................................................................17
Table 8...........................................................................................................................................18
V
Table of figures
Figure 1. Different types of palm hearth containers.......................................................................3
Figure 2. Value chain composition details......................................................................................4
Figure 3. Volume and Market Share of Palm Heart.......................................................................7
1
Company
Company Description
INAEXPO C.A is dedicated to the production, marketing and export of edible foods such as
canned vegetables; its main matrix is located in Quito, Ecuador. This company was established
in 1992, therefore it has been in the national and international market for more than two decades
and was one of the pioneer companies in the production of palm kernel cultivation, as well as its
export. Currently, they export their production to more than 27 countries in the world, in addition
to having commercial relations with 4 continents such as: America, Asia, Oceania and Europe.
Due to this, the company has international certifications such as: IFS, HACCP, BASC,
SME or LSE
classify the category of companies in Ecuador, they require some variables due to this said
Table 1
National classification of companies
With the previous table, INAEXPO C.A is classified to large companies or LSE since it has
more than 600 workers both in the operational and administrative area, also in 2018 it obtained
sales of USD 31,014,113 million and in the Superintendencia de compañías , valores y seguros
Product Range
INAEXPO C. A has a wide range of canned edible foods such as palm hearts, artichokes,
capers, pickles, scallions, dried tomatoes, garlic and olives. That is why in the following tables
Table 2
Product range with different presentations
Product Caper Palm Hearts Artichoke
Container Jar Jar Canned Pouch Jar Canned
410 , 170 ,
100, 340 and 400, 800, 212 , 340, 400 and
Gramos 410 340
700 2920 680 and 2500.
1900
Whole,
Whole,
pieces,
pieces, Whole, Whole, in
Nonpareilles whole
whole pieces, Whole and fourths and
Presentatio , surfines, meristem,
meristem, slices in marinated in
n capuccino, double
halves, and fourths. marinated
cape decker,
slices and cubes fourths.
slices and
cubes
cubes
Prepared by the authors of the document. Source: INAEXPO C.A
Table 3
Product
INAEXPO C.A has a wide range of consumable products detailed in the previous point, so
the palm heart has been chosen for this work in its different presentations and packaging. The
following table details its characteristics such as packaging, weight, presentation and lifetime:
Table 4
Value Chain
The Value Chain provides a general application model that allows you to systematically
based on the concepts of cost, value and margin. The value chain is made up of a series
According Vásconez Arboleda [CITATION Vás16 \n \t \l 3082 ] notes that The INAEXPO
C.A canned palm heart value chain consists of four stages as raw material, production and
Raw material
This is one of the initial stages of the value chain, INAEXPO C.A obtains raw material in two
ways: its own suppliers and plantations. The palm heart suppliers are the farmers of the different
areas of Ecuador that have contracts with the company where they have their product to know if
5
it is in the quality sensors., Also the own plantation where the objective is to sow, manage and
harvest the palm heart , son managed with production processes established by international
certifications; This stage is aimed at supplying national and international demand, also obtaining
It is in the second stage, it begins with the delivery and reception of the palm heart to the
processing plant, where that lot is analyzed by quality control to avoid any type of inconvenience
in the area of food safety, the stems are classified and affected, the product is disinfected, the
quality is verified, it is packaged with dead salt in the various presentations, weights and cuts
according to the requirement in the order of the order. In the labeling the needs of the client are
realized.
Commercialization
It is carried out through the sales of the product at wholesale to the different national and
international commercial alliances, so the sales network is based through direct sales,
intermediaries. Its promotion is given through digital media, prints, as well as digital platforms.
Distribution
It is carried out by sea transport, but the company hires companies dedicated to logistics and
distribution; which is responsible for all customs procedures, insurance, freight, assuming the
risks of the merchandise and thus disconnected from INAEXPO C.A of that situation
6
Market
The company INAEXPO has varieties of products to export to different regions but this
document will focus on the cultivation, preparation, production and export of palm heart.
Ecuador is one of the countries recognized internationally as one of the largest exporters of palm
heart, as it is cultivated quite a lot in tropical climates such as in the city of Santo Domingo or
Palm heart has a high nutritional contribution and a variety of gastronomic preparations
as indicated.
Palmetto: Iron and Vitamin C a cup of canned palmetto hearts provides 25 % of the daily
iron requirements. The same portion also contains 19 % of vitamin C needed every day,
According to the INAEXPO [CITATION INA19 \n \t \l 3082 ] the markets and countries for
Table 5
Market country where export Palm Heart.
Country E-mail
España rey.hasselmark@inaexpo.com
Estados Unidos ebecerra@inaexpousa.com
Francia rey.hasselmark@inaexpo.com
México ftrejoa@pronaca.com
Reino Unido rey.hasselmark@inaexpo.com
Rusia rey.hasselmark@inaexpo.com
Suecia rey.hasselmark@inaexpo.com
Prepared by the authors of the documents. Sources: INAEXPO C.A.
7
However, the present project will focus on a single market, France, which is one of the states
of the European Union that imports the most palm. Because Palm Heart is an ingredient used in
gourmet haute cuisine and therefore our potential customers are restaurants, cooks and people
between 18 and 75 years old who care about eating healthy and natural in addition to having a
Orientation
INAEXPO C.A has nine offices or branches worldwide on continents such as America,
Asia and Europe. This company operates under a geocentric orientation because it has standard
products, this means that it has globalized products this means that the products are the same for
international markets and what differentiates each of them is the distribution system, price and
One of the advantages of operating in this context is that the economy of scale can be
achieved in production that aims to reduce unit production costs, another advantage is to obtain
productive efficiency by improving the production chain of the company. Another advantage is
the optimization of resources as well as the improvement of the quality of the product and that
internationally, the company is strengthened and positioned better in relation to its competition
with the objective that increases its international market share, since it currently has a 32%
Palm heart is a food with high nutritional value contributing to the normal operation of the
cells, the heart muscles, nervous system. INAEXPO is exporting an agricultural industry that is
part of Pronaca, established since 1992 in the export phase. And in 1994 Internationalization
According Lideres [CITATION Lid18 \n \t \l 3082 ] states that the products are exported to
27 countries in America, Asia, Africa and Europe." Based on strategies windows, INAEXPO is
in the sixth frame is saying is a company that is in the process of seeking globalization because
9
of its Ecuador's strong position in the market and large share in the international market. It
maintains a competitive advantage relative to other companies for their expertise in different
countries. Because of this, Inaexpo will be able to face new markets because of the dynamic
Table 6
Industry Globalism
Internationalization is not easy considering that it is a risk taken directly by the company
due to the uncertainty that exists in foreign markets. It is important to know if you have what it
takes to satisfy those markets that are selected, the proximity and knowledge that leads to
execute such a process. Bearing in mind that today we find ourselves in a changing and very
Reasons to internationalize:
Saturation of the Ecuadorian market: In Ecuador there is too much production of palm
heart that satisfies the local market due to this there is a surplus of the product. As a
consequence, it is necessary to look for target markets abroad and thus not only focus on
10
the Ecuadorian market but also on foreign markets, even if these are distant so as to
Internationalize the brand to have recognition and achieve a positioning in the minds of
Cheaper places.
INAEXPO C.A changed the practices of exploitation in the jungle as other companies did to
get the star product such as palm heart for that reason created crops monitored by them. The firm
started with 75 people and an investment of USD 250 000. With this money, they were able to
acquire a 250-hectares farm where they planted palm hearts. Laboratories were built there to
improve the product. After an arduous investigation of the market towards international markets,
the conclusion was reached of the high demand of the product, so the export began. Today,
maintains with its work staff. Its training programs succeed in turning its technological
On the other hand, the academic training of the head of administration is an important
detonator for the company to sell part of its production abroad, making the most of ICT.
11
Another important detonator is the use of the Internet as it facilitates direct contact with
customers who may be miles away, favoring the consolidation of loyalty links.
Internal analysis.
The entity will have to analyze all its internal areas in order to identify its strengths and
necessary to consider the previous study of the target markets and see how and to what degree
they vary. In addition, a study will be carried out regarding quantity and quality of resources, in
order to know which are those attributes that will allow you to have a competitive advantage
Strengths.
The know-how of INAEXPO C.A. has been maintained for more than 25 years,
The company INAEXPO C.A. has an abundance of raw materials as it has several
INAEXPO C.A. has a good relationship with its clients and suppliers because the
company is involved in the process from the palm heart plantation to its production. The
palm growers who are its suppliers also become its suppliers INAEXPO C.A. sells them
The geographical and climatic zones where the plants and farms are located. Palm heart
Weaknesses.
Having standardized production in times of lower sales can generate production and stock
surpluses.
The lack of shipping quotas causes that shipping companies do not receive all the product
The shrinkage that is received by the importer is therefore destroyed by the customer
When the product is transported, it suffers damage to its labels and packaging.
External analysis
The company must evaluate its sector and the environment in which it develops activity,
looking at existing opportunities and threats. There are five forces that influence the profitability
Suppliers or customers have, in influencing the decisions taken by companies, the threat of
substitute products and services and the threat of entry by new competitors. These may cause the
company to be at risk and not be able to cope with these new products or affect its decision to
Opportunities.
INAEXPO C.A. can increase its client portfolio as it has a good image in international
markets.
Being a more globalized world with trends for the consumption of products INAEXPO
C.A. can expand into international markets for the sale of natural products palmetto.
13
Due to consumer trends the demand for canned heart of palm increased.
The heart of palm is a product that is generated throughout the year and can cover the
Threat.
The heart of palm is a natural product with high demand which generates competitiveness
The climatic changes can affect the production of palm heart by destroying the
The heart of palm is susceptible to pests and one of those that affects it most is the foliar
spot which totally destroys the heart of palm and prevents its growth.
The internationalization barriers will be based on three types of risks, which will be mentioned
below:
Commercial Risks
Political Risks
Recommendations
Market and according to that participation, define them as our three main competitors for our
target market and apply quality, price, presentation, distribution and advertising strategies.
Culture and language could play against it because it is not known exactly what the consumer
expects from us. To get to understand and counteract this possible barrier, it is recommended to
make an account with the Google tool and find out what our customers think about our product
and with this survey and synthesis make decisions to improve the reception of our product in the
French market
Commercial Risks
Due to fluctuating changes in currencies and given that the euro is one of the most expensive
currencies in the market, it is a difficult deal to deal with this barrier when there are fluctuations
in favor of the euro causing our product to be less accessible for a percentage of in order to solve
this, it is advisable to have a good control of our costs of scale and define a price above the range
15
of our costs of scale and keep our customers with a fixed price so there are fluctuations in the
exchange rate.
This barrier is something that would encourage us to improve our exports when we break it,
and what is proposed is that we investigate the feasibility of obtaining strategic allies in the
United Kingdom to improve our quantity and distribution of palm to export to France.
Political Risks
It is known that the European currency is in a high range of exchange even above the dollar,
and precisely because of this it is necessary to have good contracts that can make clear and very
specific the values that are incurred in international business transactions, so the Key is in the
contracts.
Although we currently have a treaty with Europe, it can be said that the requirements
demanded by the United Kingdom as an Advanced countries (AC) remain strict and for our
country that is considered among the Less developed countries (LDCs) to comply with these
requirements requires capital and quality of final processed product and that is a barrier to
overcome for Ecuador. But with good logistics and export financing it is possible to meet and
overcome them.
16
Internationalization model
This product is targeted to France because it is a country that points to the consumption of
canned its main feature being the requirement for high quality products. Are demanding enough
This company has a consolidated process because geographic remains in the international market
The Uppsala Internationalization model will be used because this company does not export
palm hearts to the French market, but if it maintains an export independently, that is, it uses a
direct export. One of the advantages that it maintains is the active national production in terms of
palm hearts and in addition they are provided with raw material through local producers
In order to export palm heart to France must comply with European laws on environment,
safety, quality, health and others. We must investigate the rules in accordance with the labeling
and presentation of the product. There is a free movement of goods within the European Union
and international freight is denominated by shipping as France is easily accessible thanks to its
When selecting the target market, different aspects must be considered, such as: target
market, entry barriers, internationalization method and among other things. In order to analyze
distances must be considered, so the distances between Ecuador and France are detailed.
17
Physical Distances
The following table details the physical distances between France and Ecuador with the
following variables such as miles, time zone, frequency of routes and flight time:
Table 7
Physical distances
Variables France Ecuador
Miles 5849
Time Zone GTM - 1 GTM 5
Frequency of
routes three weekly
Fight Time 11 hours ; 48 minutes 11 hours ; 46 minutes
Prepared by the authors of the document. Source: PROECUADOR
As analyzed with the previous table, it results in that the physical distance between
Ecuador and France is average since in time zone there is a difference of +6 hours with France,
in addition they are approximately 12 hours of flight and a frequency of flights 3 times per week.
Maritime transport is one of the most used worldwide, so you must define the distance
between Ecuador and France through such transport, which is detailed as follows: the route from
Guayaquil to Vigo has a time Average of 36 days and Vigo - France an average time of 4 days,
this means that the average time from Ecuador to France is 40 days and a route frequency one
Psychological Distances
The following table details the psychological distances between France and Ecuador with
the following variables such as language, religion, political system and GDP per capita:
18
Table 8
Psychological Distances
Variables France Ecuador
Through the analysis of the previous table, the psychological distances between France and
Ecuador are high because they have different languages, since Ecuador's GDP per capita
represents 17% in relation to France. Also, their political systems are different and the only
variable that has a bit of similarity is in religion because in France it is a country with devotion to
In the previous analysis of physical and psychological distances, Ecuador has a high distance
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