Danone global strategy

Type :

Term papers

Pages :

11 pages

Format :

.doc

Published date :

01/12/2009

Category :

Business & market

Sub category :

Business strategy

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Summary :

General presentation of Danone: past and today's position.
1. Danone's position in the food market.
2. Background history of the group.
3. Division by sector.
4. Geographical division.
Danone global strategy.
1. Internationalisation to take over.
2. Concentration on three core businesses.
3. China: An exception to Danone's strategy.
Strategy of communication.
1. To bring health through food.
2. External communication: Dialogue with consumers.
3. Danone's values.
Conclusion.
Bibliography.

Abstract

danone is one of the world leaders in the food industry. The group focuses on three worldwide business lines: Fresh Diary Products, Beverages, and Biscuit & Cereal Products. Its turnover in 2005 was 13.02 billion Euros. We have chosen this group because danone seems to be a very dynamic firm. In 2005, the group had one of its best organic growths ever: 6.7 %. Moreover, the food market is deeply involved in globalisation. This leads to two different trends when turning to the global market: the homogenization of behaviors (more and more people eat the same products) and the adaptation of firm's strategy to various local markets. danone was created in 1966, and at the beginning, the focus was not on food but on glass containers. Then, little by little, danone diversified its production in several food sectors. In 1996, a new impetus was given with the arrival of Frank Riboud at the head of the group. He introduced new methods and strategies to meet the expectations of consumers. Indeed, today, consumers expect from food industries not only to feed them but also to cure them, to help them become finer, younger and more beautiful, which is the reason why danone's core business is "to bring health through food". This demand has led danone to dedicate an increasing influence and part of budget to intellectual capital at the expense of financial capital. Moreover, danone has to find a balance to satisfy a growing market while at the same time remaining close to consumers.