Business Plan Assignment Example | Topics and Well Written Essays - 1250 words

Business Plan - Assignment ExampleThe existing capacity of Protrich is not able to obtain the demand for the products in its various marts. If the company is not able to expand the capacity for the existing demand and for the anticipated future demands, it will lose the grocery to other major competitors. Also, the Protrich need to expand as an international mug rather than confining itself to the south Indian and Middle East commercialize. The potential markets for Protrich be China, Europe and USA. In order to compete in China, Europe and USA markets, Protrich will not only demand to focus on the quality looking but overly on the cost aspect. For having an edge over the price, Protrich should adopt cost effective manucircumstanceuring. This is possible in India only up to a accepted limit. Therefore, to have an even lower cost of production, it is better for Protrich to setup manufacturing unit in China. China, along with Netherlands accounts for more than 50% of the expor ts of white button mushrooms. Chinas mushroom production has been in question for several times including certain countries imposing even anti-dumping measures on them. But this is mainly based on the fact that there wasnt much notable technology being used for production process in the country. (Mushroombusiness, 2011) But Protrich being a company with only technological support for production, quality of production will never be in question. This report will analyze the benefits for Protrich to invest in China. Analysis hearthstone Country The home country of the company is India. India as a mushroom market is not well flourished. There are very few open brands in the country. Even for the established brands, the market coverage will be limited. Retail customers are mainly from the upper middle class and above. Even for them, mushroom is not a frequent item on the dining table. But there is huge demand from hotels and restaurant chains. This is the customer group from which Mu shroom companies have a steady demand. Dominos Pizza and US Pizza has been the customers of Protrich for six years and four years respectively. Apart from these established brands, there are also many other mediocre restaurant chains who are frequent customers of Protrich. Protrichs major market is the southern states of India such as Kerala (the companys home state), Karnataka, Tamil Nadu and Andhra Pradesh. Protrichs products are available only in the major cities of these states. It is not distributed widely to include the smaller towns because there is very less(prenominal) demand in the smaller towns and cities. Even in the cities, the products will be available only in supermarkets. Protrich enjoys third position in terms of market share. The market leaders are Best Mushroom Limited and Mushroom India Limited. Protrich is almost at par with the market leaders in terms of the brand value. In the UAE market all the three brands are very popular. The advantage of current expansio n move of Protrich is that it will be able to gain market share over the other two. Neither Best Mushroom nor Mushroom India has a market presence in Europe and USA. At this point, if Protrich is able to entrust the market with quality products, it will be advantageous for the company in terms of brand value and market share. Host Country The potential host markets of Protrich are China, Europe and USA. Among these, foreign direct investment will be made by Protrich in China where it intends to setup the manufacturing units. The analysis will be based on the