Group 2, Section A

CAGE Analysis : UAE & CANADA

Introduction

CAGE Analysis

Diamond & Double Diamond

Entry Strategy

Expansion Strategy

Introduction

Industry : Frozen Meat and Meat

Products

Target Country : UAE

Home Country : CANADA

Cage Analysis

Cultural Attributes

• Restriction on meat consumption - Pork

• Restriction on processing of food - Halal

• Barriers on eating of food for one month.

• Sensitivity towards local language.

• Local delicacies (camel meat)

• Tendency to shop more in the hypermarkets.

• Eating habits (18 times more than the global average).

Administration & Political Attributes

• The clause of sponsorship (51% ownership is with locals)

• Halal meat certification

• Existance of MOU between Canada and UAE

• Food security is a big concern for UAE government as it relies on imports

• Sensitivity towards packing of the imported food (language & quality)

• Absolute monarchy (leads to high risk)

Geographical Attributes

• Geographical distance

• Climate in UAE

• Cold supply chain

• Telecommunication

• Logistics

• Port infrastructure

Economic Attributes

• Developing tourism industry

• Higher standard of living

• Competition from already existing players from USA & EU

• Ease of re-export to the Middle East and Asian countries

• Local Demand > Local Supply : Import Oriented

• High inflation rate will lead to reduction in import duties

• Presence of global food chain in UAE

Weighted & Double Weighted Score

Distance Type Score obtain

ed

Weightage

0 to 1

Weighted

score

Cultural 5.14 0.40 2.06

Administrative & Political

6.05 0.24 1.45

Geographic 6.69 0.16 1.07

Economic 7.82 0.20 1.56

TOTAL COUNTRY DOUBLE WEIGHTED

SCORE  1.00 6.14

Expansion Strategy

Market Penetration

Market Development Diversification

Product Development

Existing Products New Products

Existing Market

New Market

This reduces the operating cost in the overseas market

Life stock is processed and packed in our home country and hence there is no need for new investment in target country

Advantages

We get an opportunity to get a first hand experience

Processing and Packing

Restaurants Retailers

Aviation Industry

LiveStock

Fast Food Chains

Cold Storage

Porter’s Diamond and double diamond

Firm Strategy, structure and rivalry

Related and supporting Industries

Demand Conditions

Factor Conditions

Chance

Government

25kg per year pre person

People eat a lot of meat in Canada

Demand Conditions Factor Analysis

Capital recourse in high

Canada has high skilled labor ,well developed

infrastructure like cold chain and specialty machine

MOU between provides better trade channel

Government

Government is supporting R&D in meat industry Slaughter Waste Innovation Program

Labor strike

Diseases among the animals

Chance

Good knowledge recourse

Knowledge

Good processes in place

Related and Supporting Industry

Presence of strong supporting industries- Cold Storage,

logistics, chemical, spices, packaging , restaurant and

retail.

• Halal certification• Sponsorship (51% stakes owned by Emirati)• Tie up with a local logistic provider (outsource

logistics)• Outsource Cold Storage facilities• Hire local legal consultant for contract related

issues and legal implications• Invest in the office infrastructure to co-

ordinate the operations with the head office

Entry Factors

Advantages of the model

• Outsourcing of the cold storage facility reduces the infrastructure investment in the unknown territory and hence risk is mitigated

• We can concentrate on our core competency and maintain good quality

• Outsourcing logistics will enable us to exploit the local expertise

Dubai

Abu Dhabi

Ajman

Fujairah

Sharjah

Ras Al Khaimah

Umm al Quwain

Saudi Arabia

Kuwait

BahrainOman

Qatar