International business provides Fonterra opportunity to conduct its business across borders by using different strategies. Both strategies of cost leadership and product differentiation are strengths of Fonterra to be used in order to expand the market share and sustain a dominant market position. Nilsson and Ohlsson (2007) confirmed that capabilities to low average of milk production cost, efficient logistic operations and sales network are main factor for Fonterra to maintain a low-cost producer in global dairy industry. Moreover, Nilsson and Ohlsson (2007) indicated that Fonterra also succeeds in differentiation strategy in order to shift from manufacturer into price maker because this company develops its value-added ingredients and consumer
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Global transformations can impact on balances in economic, social and political issues. Held, McGrew, Goldblatt, and Perraton (2000) explained that globalization involves creating global imbalances, which are unprecedented, because technological force and economic revolution speed up considerable changes in an economic and political arena in order to erode and fragment nation-states, and intensify trade and investment flows. Global imbalances is important for Fonterra to identify risks of expanding its business globally because these imbalances are external factors which negatively influence systemic economies. Bracke, Bussière, Fidora, and Straub (2010) revealed that global balances have been central item in foreign policy forums following annual meetings of IMF and World Bank in United Arab Emirates in 2003 because the size of these imbalances are considerable and a further broadening risks, which can be monitored cross a variety of countries. For instance, Drager (2014) pointed out the social imbalance between the northern region of Europe and southern Europe countries, especially Spain and Greece, is growing. For example, countries in Nordic region and Netherlands achieved national plans of poverty alleviation, group cohesiveness and nondiscrimination (Drager, 2014). However, southern European countries in 2014 have faced the enormous mountain of mortgage debt which will be heritage for the next generations (Drager, 2014). Especially, Greece had the highest level of youth unemployment, almost 60 percent of its
Global transformations can impact on balances in economic, social and political issues. Held, McGrew, Goldblatt, and Perraton (2000) explained that globalization involves creating global imbalances, which are unprecedented, because technological force and economic revolution speed up considerable changes in an economic and political arena in order to erode and fragment nation-states, and intensify trade and investment flows. Global imbalances is important for Fonterra to identify risks of expanding its business globally because these imbalances are external factors which negatively influence systemic economies. Bracke, Bussière, Fidora, and Straub (2010) revealed that global balances have been central item in foreign policy forums following annual meetings of IMF and World Bank in United Arab Emirates in 2003 because the size of these imbalances are considerable and a further broadening risks, which can be monitored cross a variety of countries. For instance, Drager (2014) pointed out the social imbalance between the northern region of Europe and southern Europe countries, especially Spain and Greece, is growing. For example, countries in Nordic region and Netherlands achieved national plans of poverty alleviation, group cohesiveness and nondiscrimination (Drager, 2014). However, southern European countries in 2014 have faced the enormous mountain of mortgage debt which will be heritage for the next generations (Drager, 2014). Especially, Greece had the highest level of youth unemployment, almost 60 percent of its