What strategy are american companies employing in china

Assignment Help Operation Management

Reference no: EM132299680

After watching the video on the Chinese consumer tastes, and reading New York Times article "Taste for Shark Fin Fades Slightly in China" that discusses the changing consumer tastes for the traditional dish of Shark Fin Soup, answer the following questions:

Video Transcript: >> This Beijing supermarkets filled with brands that might look familiar but flavors that definitely aren't. Blueberry flavored potato chips, strawberry and milk flavored Cheetos. What about aloe juice from Minute Maid? Every major US food label it seems is trying to bite into China's 186 billion dollar fast food and processed foods industries by creating new products designed just for Chinese taste buds. Tropicana cantaloupe juice, orange flavored Chips Ahoy cookies and Chinese herbal medicine Wriggle's gum but it's Frito Lay potato chips that really push the boundaries. Early taste tests reveal the Chinese people didn't like popular American flavors like sour cream and onion so product researchers came up with new flavors inspired by traditional Chinese food from Szechwan spicy to sweet and sour tomato, all the way to the sugary end of the spectrum with cucumber flavor, leachy and mango.>> The market is extremely competitive so there are many new products that are being launched regularly onto the marketplace.>> Popular American chains are also getting in on the idea. McDonalds has purple Tarot pie, Starbucks offers coffee drinks with jelly cubes on the bottom and KFC has got spicy squid on a stick. These products may seem wacky in the US but there's serious pressure to be the object of Chinese cravings.>> China's going to become the second largest if not largest consumer market in the world in the next five years so if American companies don't figure out how to get it right in China, they're going to be missing out on what should be their major generator for growth.>> Even the tooth paste companies can't afford to ignore the flavor game. From lotus flower Crest to salty Colgate. Every corner of the grocery store is trying to tempt china's curious consumers.

What strategy are American companies employing in China?

How does Frito Lay's approach impact their business?

Based upon your answer to question #1, what organizational structure is appropriate?

What will determine the American snack companies' success in China?

Will a localization strategy provide a sustainable competitive advantage for American companies?

Of the products and flavors discussed in the video and news article, which might be most vulnerable to changing consumer tastes or issues that could impact their sales?

Reference no: EM132299680

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