Rich Products

How Rich Products Created a Global Supply Chain

Rich products is the largest U.S. supplier of frozen bread, in the east Rich products use a tactic that consisted in at thebeginning exporting the product to the country they desire to enter like United Kingdom, they started exporting to introduce in the market and get people to know the product andsee if they have acceptance in that market. Then when they were sure that the product was accepted and they have gain market they open a factory abroad and start producingproducts there and be able to reduce prices and expand quickly. Once they open a factory in the United Kingdom they started exporting from the UK to some Europe countries. Thistactic was used in all the East side, and it worked very well for them.

When they decided to enter to the western side with india they decided to enter in a different way, theydecided to have a joint venture with a already stablished and big company there like Kwality Foods. They did this because thw western market is different than the eastern and theydidn´t know how to enter so they decided to offer Kwality Foods technology and in return they receive manufacturing plants and a established distribution channel, this willhelp them introduced their product without much expending in investigation and probable failure because they didn´t how how to rich Western customers. But they didn´t gave them allthe job, there were things controlled by them like warehouses and international logistic system.
I think that for each type of market it is correct to adapt strategies to beable to be succesfull, the strategy used by Rich products was correct in my opinion because they knew how to differentiate the two type of markets and create a flexible strategy.