Thursday, December 5, 2019
Impact Of Globalization On Frozen Food - Myassignmenthelp.Com
Question: Discuss about the Impact Of Globalization On Frozen Food. Answer: Introduction The frozen food industry is one of the popular markets in Australia. A growth of 6.1% in a year has shown better availability of frozen food products in the Australian market (agriculture.gov.au, 2017). Most of the frozen foods are good in hygiene and they contain maximum vitamins and minerals. There are some facilities via online marketing in the frozen food industry and increasing more customers attach to that service (Navickas, Baskutis Gruzauskas, 2015). There are some positive influences like this market will only customize food that is available in next eight years. Foods like meat, vegetables, poultry, seafood, soups come under the frozen food sector and people from Australia and UK people are happy to consume these kinds of food. This is one of the developing markets in Asian countries like India and China. There are hypermarkets and supermarkets in Australia where frozen food demand in high in nature. Frozen food market There are some major companies that adopt acquisition of new products in frozen food and get a competitive advantage from other food companies. The product type depends on the user and geographical need of people. Nestle is one the leading companies in Europe. Aryzta is another one. The traditional food habit has been changed by consumption of these kinds of foods and the report forecasted comprehensive understanding over the market. Frozen Food Market is expected to reach $306 Billion by 2020 and that growing food culture changes consumers lifestyle and food habit (Ravuvu et al., 2017). From the geographical point of view, there are four segmentations like North America, Europe, Asia-Pacific and LAMEA in the frozen food industry. The market dynamics are also changing the business opportunity and most of the online food suppliers companies added those frozen foods to their delivery list. As per the Australian food news in 2010, the foremost customer advocacy company, Choice, research over frozen foods and provide a report that resulted in the better nutritional value of food (Ausfoodnews.com.au, 2010). All those foods have been vacuum packed with nitrogen and carbon dioxide. The continual development in the frozen food market could be accredited to the increasing consumer perceptive that frozen can often equivalent fresh. Internal and External contextual factors Globalization is the procedure in which communities come to know the gradual enhancement in general financial, communal and cultural atmosphere. The business environment is depending on the internal and external matter of globalized system and influenced by the market structure. A more integrated world community has got influenced by this process and food distribution in all over the world makes a statement of right perspective and change. In case of global understanding, internal factors like opening of new market of frozen food company or providing customer service or implementation of marketing strategies are important. External factors like new market environment are not always fruitful for frozen food companies in terms of business expansion (Baker Friel, 2014). Health and fitness is the key benefit of the frozen food industry and there is no use of preservatives. The clean and healthy atmosphere is sustained in these foods and these are protected from food spoilage case. So consumers are attracted by the packaging or by brand of the company. Company branding is another factor that presents a global image of business by aligning their logo (Hendrie et al., 2016). Most of the cases new approach is taken by a new company so their product or service needs a unique strategic plan so that they can sustain their business in this competitive business market. External factors like promoting the company and need a promotional strategy for that company is important for globalization. Consumer analysis is important for this kind of business as there are several business markets or trends in business which is good for consumers. Frozen food companies convince their customers about the necessity of those foods and state the level of hygiene consumers can get from those foods (Zia, 2017). Frozen food industry selects their packaging technology in an attractive way so people are attracted by these kinds of packaging and better consumer reviews can be gathered. Another section in globalization is the market analysis, which is depending on the people need, market size, product availability and probable enhancement in market and all these are considered as an internal factor as this is controlled and monitored by the company (Webster et al., 2014). On the other hand political barriers, cultural activity and communal problems consider as external issues. Impact of Globalization on product segmentation There are different segmentations in the Frozen food industry. Readymade meals attract more people and people love to consume that as they have not put their effort into cooking those materials. Beef production in Australia is incredibly high in 2013 and this amount of beef cannot be stored in a right way and almost 95.5% of that mature beef needs to be frozen so that those beef can be used for further occasions (Brown, 2018). Australian Sheep meat production is almost over 150000 tonnes and lamb production is also high, so the concern matter for Australian Food industry to store those foods for future use and this is the reason behind frozen food industry (Evans et al., 2015). These foods are distributed globally and reach in the different market. There are some issues like transport, market opportunities all these are externally handled by the company. Products have to go through between tariffs, regulations and customs but multinational companies are eager to have those products ( Augustin et al., 2016). There are different food safety laws in different nations so the parental company has to change their law over food and all those imported food products sell at high price (Hafting et al., 2015). Most of the nations want to update their organic food and for this reason, globalization is important for those nations. To introduce those organic products a particular frozen food market is needed for the development of economy over the nation (Olson, 2016). Frozen potatoes, frozen vegetables and frozen soups all these product types help to enhance preservation process in the market and also assist food service industry of Australia for their future uses. Globalised production and Foreign Direct Investment In case of globalization, change in the economy in Australia is quite natural as increasing number of population enhances extra GDP and that affected nations economy. Globalization supports to enhance trade opportunities and negotiate with other countries for better business dealing. In case of frozen food, a high rate in foreign market embrace the business of frozen food and by default, Australia national economy enhances (Bucchini et al., 2016). Frozen potatoes are one of the globalized products that acclaimed by all over the world and the product extension market allows foreign business companies to take those opportunities to introduce them in market. There are some local crops are also exported in China, India and Northern America and Australian companies invested their money in these countries so that better business standard and flow in froze food can sustain (Yusoff et al., 2015). In this time, there is a worldwide demand for frozen food which can only possible due to globali zation. FDI also reduce transaction cost, access and develop foreign market and overcome all the trade barriers so that better business outcome can be drawn (Ferguson et al., 2016). The expansion in business of frozen food and their stable and adequate supply from Australia and other countries adopt people behavior to intake frozen food in a large amount. The foods are high in vitamins so basically there is no such problem to globalize those foods. The increasing demand for frozen foods consumption is the major need of globalization and even that is growing in many developing countries. Trade opportunities Business trade opportunities are huge in case of frozen food business as products start to form milk powders and end in confectionaries. So a huge amount of food globally transferred to different nations. In case of market entry, e-commerce in urban sector is impacted by revenue generation for the company due to the sealable ability of frozen food. Online food sale in urban sector and their current market fresh food scarcity also help frozen food to establish their market in e-marketing (Milc et al., 2016). There are multiple distribution channels for frozen food industry and transportation, management all these are linked with that. Depending upon the combined population of the country, trade opportunities are also increasing in number. GDP over more than $13 trillion has earned through this trade and that showcases as the greatest potential growth of Australia. Conclusion Therefore, it can be concluded that Globalization is important for the development of Frozen food industry. The process is not only featured in Australia but also in global aspect. There are many developing counties, imported frozen foods and enhance their business market. Consumers love to acquire those foods and that is the reason a global market of frozen food sustain. In Australia, a major market is based on Frozen food so economic development in terms of GDP is extracted from this process. In this report, all possible economic change and product distribution of frozen food has been discussed and also analyze the income growth in the external market and pointed to the relationship between globalization and frozen food. 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