Page 2: Market entry
Cadbury Schweppes had three 'route to market' options to consider in order to respond to Poland's market needs. The options were:
- export from other Cadbury Schweppes companies
- acquire or form a joint venture with a local Polish company
- establish its own factory locally.
When Poland first left the communist regime the government pursued a policy of open trade which resulted in a flood of imports. To protect local industry the Polish government established import duties which were particularly high on goods such as confectionery.
Under these conditions, exporting to Poland was not an economically viable option to Cadbury Schweppes. Cadbury Schweppes evaluated the leading Polish confectionery companies to assess their suitability for acquisition or joint venture. However, several problems, such as over-staffing or lack of investment, were found to be common across all of them.
So, having rejected the first two options, Cadbury Schweppes decided to explore local manufacture as the most appropriate route into the Polish market.