Title: Cedral Tassoni: International Expansion
Subject Area: Global corporate strategy
Region: Italy, the United Kingdom, and France
Industry: Soft Drinks
Company: Cedral Tassoni
Challenge: Tassoni is an Italian beverage company that has been in operation since 1956. Headquartered in Salo, Italy, Tassoni is known for its natural and refreshing taste, as well as it’s straightforward yet effective marketing. Tassoni’s locally sourced ingredients combined with their recipe has led to the firm having a great reputation amongst Italians. After a successful product launch and expansion into the Middle East, Giorgio Fasoli, the company’s COO, set his sights on further expansion into Europe. The two new countries that the firm was considering expansion into was either the United Kingdom (U.K) or France. Both options present strong opportunities for expansion but also have specific threats that each match Tassoni’s own internal strengths and weaknesses. Thorough data collection and research into Tassoni’s operations as well as the U.K.’s and France’s competitive environments have provided insight into which option would best suit the company’s needs and lead to the greatest chance for successful global expansion.
The Team: Elucidating Professional core
Embedding in the Realities of the Organization and Industry
We worked with Giorgio Fasoli, the COO of TLH International Trading FZCO, to gather primary data about the company. The company licensed the rights of Tassoni and is currently in charge of its international expansion. As the key decision-maker, Fasoli has given us insight into the operations and key decision points that need to be made. We had several phone calls and emails with Fasoli, which allowed us to understand their resources and capabilities, as well as ongoing projects and strategies. In addition, we gained access to some client presentations, marketing brochures, and the company’s vision and mission.
We also utilized Tassoni’s website for secondary information, which provided a history of the company, its product line, and historical advertising campaigns. Data about the soft drink industry in both the UK and France were gathered by referencing a variety of online sources and databases. The research was also done on competitors in the industry by looking at their respective websites to understand other companies’ product offerings.
Generating Value for the Company
In conducting our analysis on the external environment of the UK and France, we applied the PESTEL framework to describe the political, environmental, sociocultural, technological, economic, and legal macro-environmental factors. In our analysis of the soft drinks industry, we evaluated industry growth, maturity, dynamics, and competitors’ strategic position using Michael Porter’s Five Forces model. These frameworks allowed us to conduct an in-depth on external components that may have an impact on the company’s strategy. In addition, we applied the VRIO framework for analyzing the company’s internal resources.
Capital Utilization: Ready for New Projects