Between 2004 and 2011, the Universal Robina Corporation (URC) launched its first ready-to-drink bottled tea product, C2, in three Southeast Asian markets: the Philippines, Vietnam, and Indonesia. URC’s founder hoped to replicate the success that ready-to-drink tea had achieved in China and Japan. Because of the differences in competitive tactics and consumer preferences in each market, URC needed to modify its strategic plan for each to improve the likelihood of achieving success with C2. These cases encourage students to discern which characteristics are most important for success and thereby determine the profitability of each new international venture.<br><br>In addition, the cases explore several issues pertaining to the internationalization of an emerging market firm — particularly one lacking the advantage of being based out of a larger developing country like India, China, or Brazil. Based in the Philippines, URC did not have a sufficiently large domestic market to subsidize its international operations or an internationally known brand or national characteristic to achieve leverage in new markets.<br><br>The cases provide a comparative illustration of expansion into three different markets. Case (A) illustrates a local market expansion, while cases (B) and (C) describe international expansions. In each case, students are encouraged to understand the type of localization strategy required to ensure the success of the product launch. Students will also realize that despite being neighbours, the three Southeast Asian countries in these cases have such diverse tastes and consumer preferences that knowledge and experience gained from one market will not necessarily translate to success in the others.
San Miguel Corporation is one of the oldest and largest companies in the Philippines. In its 100 year history, it has established a clear leadership position in the Philippine beer industry, as well as having made successful forays into other related and unrelated product areas. In the late 2000s, Eduardo Cojuangco, the CEO of San Miguel Corporation, which was South Asia's largest food and beverage company, found himself in a quandary. Cojuanco wanted to move San Miguel into industries that had scale and good future growth possibilities, to build leadership positions in key industries that would drive growth not just for San Miguel but also for the Philippines. At the same time, San Miguel Corporation would reverse its international expansion plans. The case involves discussion of this strategy, tracing issues of internationalization versus a domestic product focused growth in non-allied businesses in the Philippines, such as energy, mining, infrastructure and other utilities.
San Miguel Corporation is one of the oldest and largest companies in the Philippines. In its 100 year history, it has established a clear leadership position in the Philippine beer industry, as well as having made successful forays into other related and unrelated product areas. In the late 2000s, Eduardo Cojuangco, the CEO of San Miguel Corporation, which was South Asia's largest food and beverage company, found himself in a quandary. Cojuanco wanted to move San Miguel into industries that had scale and good future growth possibilities, to build leadership positions in key industries that would drive growth not just for San Miguel but also for the Philippines. At the same time, San Miguel Corporation would reverse its international expansion plans. The case involves discussion of this strategy, tracing issues of internationalization versus a domestic product focused growth in non-allied businesses in the Philippines, such as energy, mining, infrastructure and other utilities.<br><br>The case is part of the Beer Cases series: Anheuser-Busch InBev (9B11M124), Groupo Modelo (9B11M125), Tsingtao Brewery (9B11M126), San Miguel and Thai Bev (9B13M065).