Stonyfield Case Analysis

Stonyfield Farm Case Study

1) What factors should Stonyfield review before deciding to go international?
Going international is no easy task as Stonyfield will have a lot to work on as managing a global company can be very complex in nature, very expensive and the company will need to adapt to local cultures and traditions in order to strive in those countries. One can cite as reasons to go international the potential for significant increase in profitability as the likelihood of higher profits in international markets will be there; developing a much larger customer base (to include domestic and international customers) and, diversification of its customer base by not limiting the company to one specific country or region of the world.
Major factors that will influence Stonyfield’s management decision to go international:
      For instance, the company has to take into account the low cost production factors being offered in those countries that will make it economically attractive and feasible for Stonyfield to do business. Among those advantages, one can cite cheap labor, dealing with local suppliers directly, low trade barriers, subsidies from local governments and affordable and inexpensive raw materials.
      Another factor would be economies of scale the company can achieve in the markets Stonyfield is looking to invest; how quickly that can be accomplished is key. Other factors influencing the scales can be the product itself, the geographic location of the countries being considered for international expansion, the consumers unmet needs and wants, those countries’ economies and political climates.
      Economies of scope is the other factor Stonyfield can increase its market exposure as by providing products and services customized to where the company wants to increase a presence and where its objectives are designed to satisfy the local needs and wants of the buying public.

2) What are the major ways for Stonyfield to take their...