PONTIFICIA UNIVERSIDAD JAVERIANA CALI

INTERNATIONAL MARKETING
EXAM 3
LAURA PRIETO

1. SME´s desire to internationalize is hampered for many reasons such of lack of

international managerial training, high costing that implies to open a new
market and other conditions that will not allow them to go overseas.
Globalization opens a window of opportunities but the strategy has to be
adequate to the company´s conditions and to the market niche that the
company is wishing to enter.
The first step to design a strategy is the diagnosis. How well the problem or
opportunity is recognized the better off the strategy will be built.
Second step is the guiding policy” outlines an overall approach for overcoming
the obstacles highlighted by the diagnosis”
Third step is a coherent action.
Articulate the value proposition, that is, the value created for users by the
offering (coffee, panela, Bocadillo veleño, Chocoramo, Cacao, wine) then
design a short but effective strategy to enter a new market (pl.use the
information that you have worked for each of the projects on going)

R/ The Bocadillo Veleño is a very famous and traditional candy from Colombia, the
entire production chain take place in Velez, Santander. Its production have more
than 200 year of history. The main raw material is the red and white guava. this
product is characterized from other products for its completely handmade process.

The value preposition of the Bocadillo Veleño is based in a high quality handmade
product, its production has years of experience , 80% of the producers have learned
the artisan production technique form their ancestor. Thanks to all the experience
and effort the Colombian government gave them the recognition of “ Denominación
de Origen” which protects the production of this product, only Velez, Santander
have the license and the patent to produce it. This turns the Bocadillo Veleño in a
unique product. Another advantage of this candy is a completely healthy sweet and
chemical free. All the raw materials needed for the production are 100% naturals
and come from the same region, not even the packaging affects the environment
because it is wrapped in leaves of “lijao” and last but not least, the bocadillo can be
consume on different occasions, such as a snack or after training.

The Bocadillo Veleño has a great potential to be internationalized, due to is a

handmade product and is part of the Colombian culture, causing the interest of
many people who are interested in our culture or citizens who had to migrate to a
different country. The bocadillo should be located at supermarkets or fit and health
stores like “Kreation” in LA, usa. The packaging of the product must be related to
our culture and all the benefits it has. I think United States is a very good market to
start with the internationalization process, due to, the high level of Latin-American
 people who know the product and they would do a voice to voice marketing, there
are also many people interested in learning more about the Latin culture.

2. Business model Framework (PAG 13-15) identify in what level of business

framework is your Company/product and what steps should follow to reach
the top of the model

R/ Fedeveleños is in level 3 in the business framework model because thanks of all

the experience they have they already reach a high level of production and the
whole country recognizes its product which is part of its culture and they have
managed to export their product to the United States.

To reach level 4, Fedeveloños need to listen to new external ideas and technologies
in the development and execution of the business, because relationship with external
agents help to identify errors and they would innovate in their problems improving
their value chain.

In level 5, they need to continue improving the relationship with external agents like
suppliers and costumers to share their roadmaps, giving Fedeveleños a better
visibility in future requirements of costumers, they would also need to look for
major technical shifts or cost reduction opportunities and they would need to invest
in studies about their costumers to learn about them deeper and look for new
opportunities.

Finally, to reach level 6, their suppliers and costumer must become in business
partners, the risks must be shared. The business models of suppliers are integrated
into the planning processes of Fedeveleños. They will have the ability to establish
new technologies as the basis for a platform or an innovation for the value chain.

3. Compare multinational companies´ strategies versus a Small and Medium

companies´ strategies ways of internationalize and establish at least 3
differences and 3 similarities.

Differences between the strategies of internationalization of Multinational

Companies and Small/Medium Companies.
 Multinationals companies have their international view clearer and simpler
because governments are looking for foreign investment and to obtain it,
they can reduce tariffs and change some norms to facilitate the entry process
in the new market or in environmental laws in order to attract them.
 Multinational company they already have developed a scale production
system, so they can produce at a very low cost and sell it at a high cost and
in many quantities internationally, while small or medium companies do not
have the capacity of scale production, like Fedeveleños, their product is a
handmade process which makes very difficult to achieve economies of scale.
  Multinational enter to the new market with a product stablish and known for
most costumers, while small or medium companies need to do all process of
getting know their product and positioning in the new market.

Similarities between the strategies of internationalization of Multinational

Companies and Small/Medium Companies.
 Multinational, medium and small companies look for government help to
reduce taxes and facilitate entry.
 Multinational, medium and small companies seek help from other
companies that have already entered to the market they want to enter. The
other company would make easier the process because the have already
done the hard work by opening the market and positioning the product in the
specific segment.
 Multinational, medium and small companies they internationalize to
increase their income, profits and to reduce business risks.