Chupa Chups Company – Case Study Example

The Chupa Chups company case study The main strategic decisions include the decision to change Company from the initial "Granja Asturias" to Chupa Chups. This decision made sense after the proprietor of the Lollipop product acquired the previous company, because the initial Company name did not have a good reputation due to financial problems. Another major decision was the sole acquisition of the former company by the proprietor of the product, Enric Bernat, after the investors were not willing to invest in the new product that he proposed (Chupa Chups, 2012:n.p.).
The expansion of the company started with Europe, where it first expanded to Spain, France and Germany in the 1960s, and then the USA later in 1967 (Chupa Chups, 2012:n.p.). This was followed by Asia in the late 1960s and early 1970s, where the first Lollipop product was availed in the Japan market, then followed by Indonesia, Malaysia, and then Australia (). Japan was surprised to find a Spaniard selling sweet on a chop stick. In the 1980s, the company ventured into Europe and North America markets, while the company expanded more to Asia in the 1990s, venturing into countries like South Korea and China.
The company applied the joint venture strategy as the mode of entry into foreign markets, where it partnered with local companies for the production of the product, for example in France and also in China, where Tatagum Company produced the company’s product (Chupa Chups, 2012:n.p.). Another expansion strategy was exporting; where the company exported its products to the market it had not established a production facility. After entering into the market, the company changed the strategy overtime, eventually applying the localization strategy, where they build production facilities and made the company function as a local company.
In the developed countries, the company applied the joint venture strategy by partnering with local companies for production of its product within the countries, while in the underdeveloped and developing countries, the company used the exporting strategy. The company learnt from its mistakes and changed the wooden stick with plastic stick, which would be easier to process (Chupa Chups, 2012:n.p.). The knowledge of the different flavors, colors and packaging that suited different markets was essential marketing technology that kept evolving over time, which helped the company to meet the tastes and preferences of different international markets.
Reference
Chupa Chups. (2012). History. Retrieved March 15, 2014 from http://www.chupachups.com/history.html