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Should it enter to
US market?

Mika
Hangameh
Cassie
Cyrus
AGENDA
Introduction of Wooden Bakery

Reason behind the expansion to USA

Core Problem

Alternative solutions

Recommendation
Brief Story
Mr Edward Bou Habib
established Wooden
1969 First establishment
time line Bakery

- New concept by his sons


- Change in immense vision
New concept 1996 - Experienced
management team

First wooden bakery


retail outlet in …. 1999 First retail outlet

First franchising business


model has been introduced
Franchising operation 2002 in Lebanon. Since that time,
the company growth
The
ii first franchise rocketed
operation in Saudi
Arabia 2009 Overseas franchising
more products…. : -P
https://m.youtube.com/watch?v=W
pD4Qy1XBvo
Outlet Growth
Franchising
SHOULD IT ENTER TO US MARKET?
Discussion
time
Should Wooden Bakery enter US
market?

What are the push factors of it?

What are the pull factors of it?


Things to consider
Things to consider
Your opinion
Group 4 : intense competition in US
Group 2 : market research
Group 1 : joint venture and cooperate with big retailer like Walmart
Push factor
Burning ambition to be number 1 internationally

Pull factor
Demographic factor : Middle Eastern communities in
US
Though competition among bakery
factories in US

LOGISTIC – SUPPLY CHAIN


CORE PROBLEMS ANALYSIS
The other impediments
Different consumption Cultural & ethnic
behavior diversity

Lack of market
research in US
Demand of US market

Lack of supporting Political relationship


partner in US with local government

Unchanged expansion
strategy
High quality product
WHAT ARE THE SOLUTIONS ?
Discussion
time ….
ALTERNATIVE
SOLUTIONS

Hire a intermediate company


/ agency to find an access Cooperate with a long-
and the best partner as well established well-known retail
as to conduct a market company (MERGER).
research

Change its current strategy


Take over a small or medium which is used to be applied in
size company Lebanon.
(ACQUISITION).
Hiring intermediate company

 ADVANTAGES:  DISADVANTAGES:
1. Acquiring the information of 1. Costly process(money & time)
2. Over-reliance; further considered
partners and current market
condition
2. Investigation company do the
market research→managers to
apply suitable market expansion
strategy
Company Acquisition

Advantages: Disadvantages:
1. account market 1. Considerable
revenue; at once;
share faster than
strain on wooden
operate its bakery’s finance
original brand 2. Using existed brand,
2. Keeping previous detrimental to
logistic strategy building own brand
culture
Cooperate with Well-established & -Known
Company

Disadvantages:
Advantages: 1. competitor for
o these well-established firms cooperation should
have the relatively perfect not be ignored
operation system
o help Wooden Bakery to be
known by society quickly
Change its current
strategy which is
previously used to be
applied in Lebanon advantages:
• beneficial for wooden bakery’s further growth in long term
• Control risk acceptable range

e.g :
Disadvantages:
• support its aggressive growth • the profit would be low
strategy • and this period may not be short.

• opened a large central factory


• with the state of the art
technologies

• the Uncertainty of market, policy, consumption habits


would be a barrier
Discussion time

What is your best recommendation


Recommendation

Cooperate with well-known retailers Fast-food chains


Walmart, Subway,
Kroger McDonalds

Cooperate with wholesaler


Costco,
Sam’s
Recommendation

Step 1 Step 2 location

- retailer and wholesaler - cooperate with fast


• Start from Chicago
food chain
• using kiosk inside of the
supermarket • provide the pita
bread as part of
the staple food
Why Chicago?

• 8th richest country in the world, 3rd richest in US


• Large population 2,722,389 (2014)
• Occupied by young population,65 percent of its residents between age
18-65 (statistic 7)
• Median household income is higher than median American household
income. (statistic 6)
• Diversity of culture (countries people)
• High concentration of American of Arabian and Lebanon descent
CHICAGO population

DEMOGRPHIC
2014
CHICAGO INCOME
IN U.S DOLLARS
Recommendation for logistic
• Due to considerable amount of
products are needed

• Bring their own machine and set a


Factory

• Save time & control cost

• Guarantee high quality