Breadfast: International Expansion

Breadfast is an online grocery delivery retailer founded by Mostafa Amin, Muhammad Habib, and Abdallah Nofal in Egypt in 2017. The three co-founders are now contemplating international expansion into new markets to further grow their revenues and diversify geographically. They have decided to investigate expanding into nearby Tunisia and the Kingdom of Saudi Arabia (KSA). Therefore, they must examine the macroeconomic environment and the food and beverage industry in those two countries to determine if the conditions are favourable to ensure a successful international expansion. In addition to identifying the criteria of attractiveness for each country, the co-founders must select the most appropriate market entry strategy. The online grocery retail market in Tunisia and KSA has been growing as a result of evolving consumer preferences and the COVID-19 pandemic. Both countries have favourable and unfavourable factors. Given the risks and trade-offs in each country, Breadfast must determine which market to enter and which mode of entry will increase its the chance of success.

This case can be used in several class sessions and can be offered in an international business or a strategic management course at the undergraduate or graduate level. In an international business course, the case can be used to introduce market entry strategies. It provides a practical example for students to interpret quantitative and qualitative variables as factors affecting decisions on internationalization. The case can help students develop research skills as well as analytical skills, using both macroeconomic and microeconomic methods to understand the elements of internationalization. After completion of this case, students will be able to accomplish the following objectives:<br><br><ul><li>Learn about the rapidly changing macroeconomic environment of emerging markets.</li><li>Understand the learning tools for conducting business analysis of potential countries targeted for international expansion.</li><li>Develop awareness of how political, economic, and social factors affect decisions on expansion through internationalization.</li><li>Learn to quantify and weigh all factors in the business environment according to their relevance to the industry and to the company when considering expansion through internationalization.</li><li>Evaluate viable entry modes and select optimal solutions.</li></ul>

• Internationalization
• Modes of entry
• Online retail
• International business