Reference no: EM132780163

You and your team members are the managers of a small size company producing snacks (basically yoghurt and pastries) in Alicante (South of Spain). You and colleagues have founded the company 10 years ago and now employs 25 persons. Your company consists of a plant runs by 10 specialized workers (bakers and yoghurt makers), an office (4 persons) and a sales team (6 persons). During the first two years your sales gently developed by you and friends selling your products to local food stores in the vicinity of your plant. In the past three years your sales have significantly developed in Spain through a network of individual retail stores that your sales team have prospected in the past three years (you also own 4 large retail stores (managed by 4 local managers) in Alicante, Madrid, Barcelona and Sevilla. Your sales in December 2019 reached 10 million euros. Recently, you and your team performed a Porter 5 force analysis and had a thorough brain storming session, where you and your team ended up with one option : developing in France through a network of retail stores.

Justify your answer indicating the pros and cons of your decision after performing a short Porter's five force analysis.