Established in Singapore in 1883, Fraser & Neave was founded by John Fraser and David Neave. Fraser and Neave (F&N) business comprises with food and beverage, dairy products; property investment and development, and publishing and printing. F&N is one of Singapore’s oldest firms and a famous brand. Its traditional business was the production and distribution of beverages from its F&N range and licensed international brands. Listed in Singapore, the group’s subsidiaries and associated companies include Frasers Centrepoint, Asia Pacific Breweries and Times Publishing. Today, F&N is among the top 25 companies listed on the Singapore Stock Exchange with a dominant standing in the Food & Beverage, Property, and Publishing & Printing …show more content…
F&N made an investments in plants in Malaysia and Thailand to manufacture its product. After that, F&N import from those country and distribute its product in Singapore. Due to Singapore is a small island country and a land is limited, if investment plant and production in Singapore will involves a high costs.
By using international business strategy, F&N can economize on labour costs or raw materials costs by shifting production from geographic areas where pay scales are high to geographic areas where pay scales are low ( Textbook). However, by using this strategy F&N may face a large investment to risk such as devalued currencies or expropriation (text book …show more content…
According to Fahri and Peter, most of the incumbent firms try to block or slow down the entry of new competition by engaging in entry deterrence strategies. The incumbent firms employ defensive strategies is to discourage market entry of new competition or defend their markets once a new competitor enters their markets. While defensive strategies usually do not enhance a firm's competitive advantage they can definitely help fortify its competitive position. By employ the Defensive strategies, the firm can take a strategies option such as announce a new product or price changes, introduce new feature and add new