Task$2-$ Strategy in the Global Environment

$2\mathrm{.}1$ Yakult's Motives for International Expansion

One may assess Yakult's global reach by employing the Eclectic Paradigm, also known as the OLI model $($Dunning$,1988).$ According to John Dunning's approach, businesses should expand internationally for the following three reasons:

Ownership advantages: Specialized assets or skills that provide the business with a competitive advantage.

Advantages of location: Gains from joining a specific market.

Advantages of internalization: Gaining control over overseas businesses to increase revenue.

Benefits of Ownership

Yakult offers a special product that is uncommon in many markets: a probiotic dairy product. They are now more competitive as a result.

Location Benefits

Yakult's growth in popularity throughout Europe, Africa, the Middle East, and Asia can be linked to the increasing awareness of health issues in these areas $($Rugman and Verbeke, $2004).$ Yakult's products are well positioned to benefit from the growing market for health and wellness products.

Benefits of Internalization

Yakult can maintain quality control over its goods and cater to regional tastes and preferences by setting up shop in these areas.

$2\mathrm{.}2$ Strategic Options for Internationalization

Yakult may want to think about the following tactical choices:

Yakult can test the market through exporting, a low$-$risk technique, without having to make a big investment.

Licensing and franchising: Yakult has the option to franchise its business or provide a local business a license to use its product formula.