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Poland a developing market

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Why did Cadbury Schweppes choose Poland as its point of entry into the Central and Eastern European confectionery markets? Because there was a number of significant developments taking place there. he Central and Eastern European countries can be divided into two groups! those which fell originally within the Soviet "nion# and others. he key difference is that the countries within the latter group only had communist regimes for $% years and free enterprise still e&isted to some degree. he four most advanced countries within this group were Poland# 'ungary# the C(ech )epublic and Slovakia# of which Poland had the largest population and percentage of private sector business# as well as a strong consumer market. *t also had good prospects for investment# offered a skilled labour force and faced neither ethnic strife nor border disputes. 'aving developed a stable parliamentary democracy and signed an association agreement with the European "nion# Poland recognised that to shed its former communist image and face market forces with a proactive# commercial approach would re+uire ma,or changes in its culture and attitude. -ne way in which it could do this was to encourage development in Poland by its European partners# and Poland already had a good relationship with the ".# which has a Polish community of some /%0#000. hese rapidly changing political# economic and social factors were key influences in Cadbury Schweppes1 decision to enter Poland1s developing market. 2nother strong factor was that# despite Poland having# at that time# one of the largest confectionery markets in Central and Eastern Europe# none of Cadbury Schweppes1 ma,or international confectionery competitors had established strong businesses there. 2lthough the Company could have taken a 1wait and see1 approach 3running the risk of missing a vital opportunity to develop an early market lead4# it decided that there were sufficient indicators to ,ustify an investment in Poland. 5/. 57. 59. Why do you think it was important for Cadbury6s to enter into the Eastern European market? "sing a S EEP8E analysis# e&amine how the move would be different to the situation in Cadbury6s other markets. 'ow did Cadbury6s enter the Polish market?

Market entry
Cadbury Schweppes had three 1route to market1 options to consider in order to respond to Poland1s market needs. he options were!

e&port from other Cadbury Schweppes companies ac+uire or form a ,oint venture with a local Polish company establish its own factory locally.

When Poland first left the communist regime the government pursued a policy of open trade which resulted in a flood of imports. o protect local industry the Polish government established import duties which were particularly high on goods such as confectionery.

"nder these conditions# e&porting to Poland was not an economically viable option to Cadbury Schweppes. Cadbury Schweppes evaluated the leading Polish confectionery companies to assess their suitability for ac+uisition or ,oint venture. 'owever# several problems# such as over:staffing or lack of investment# were found to be common across all of them.

So# having re,ected the first two options# Cadbury Schweppes decided to e&plore local manufacture as the most appropriate route into the Polish market.

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