Type of FDI strategy does my company's distribution mode set-up describe; Horizontal vs Vertical?
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It so happened that the Honduran Division Dole Fresh Foods owned a Coca Cola Bottling Plant and Beer Brewer that distributed product throughout the country. As owner's for the Coca Cola formula, the parent organization found a strategically astute approach to entering a market using local capabilities and expertise of a Nationally Recognized brewery who had an established distribution channel.
Absent the distribution network, the task of setting-up the logistics network would have been a very time-consuming and painstaking task.
What type of FDI strategy does my company's distribution mode set-up describe; Horizontal vs Vertical? Would it make sense to keep these two product distribution activities separate....thoughts?
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Solution Summary
The type of FDI strategy for a company's distribution mode set-up is examined.
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FDI Strategy:
Foreign Direct Investments is the act where an organization opts to invest abroad. The selected area of investment has to be a business environment where the foreign corporations are in control. In this case scenario, Honduran Division Company which is owned by the Coca Cola Company wants to gain entry into the market through the use of the local capabilities of another company. This is a process where the host Company injects foreign funds into an enterprise operating in a different market economy. The classification of FDI has been ...
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