Mondelez International’s annual report includes both financial information and a public statement by the corporation related to its position in the global market. This allows for considering the company’s actions and financial changes related to the continental markets in a single connection. Thus, it becomes possible to recommend one of the strategies that involve a combination of three ARs – aggregation, arbitration, and adaptation. All these three stages are encountered in one way or another in the activities of large companies, but the task is to propose the most successful strategy in connection with the trajectory of the company’s development. For 2020, the company has covered 73% of the non-US market, which implies growth prospects abroad (Mondelez International, 2020). An adaptive strategy seems to be of primary importance for this type of market expansion, especially given that Mondelez already has experience building products for more than a dozen countries.
An arbitrage strategy that involves the exploitation of economic opportunities also seems logical within the framework of the company’s activities. By developing new markets, the company could produce mass-produced products of unified quality that are quite inexpensive in components but distributed and branded all over the world. Using such a strategy, the company would increase its already wide influence and strengthen its position as a leading manufacturer of snacks, biscuits, and drinks. Diversification of the product by adapting it to the needs of customers in different countries could also get a new round in the pursuit of market coverage. Considering that Mondelez biscuits and other sweets are bought more often in connection with the holidays, the company has the opportunity to create regionally specified deluxe editions of its products. Thus, it could significantly increase the demand in each of the countries. Adaptation and then arbitrage mechanisms are thus the most recommended based on Mondelez’s financial situation and position.
References
Mondelez International. (2020). Mondelez 2020 Annual Report.