Type of FDI strategy does my company’s distribution mode set-up describe; Horizontal vs Vertical?
November 5th, 2022
It so happened that the Honduran Division Dole Fresh Foods owned a Coca Cola Bottling Plant and Beer Brewer that distributed product throughout the country. As owner’s for the Coca Cola formula, the parent organization found a strategically astute approach to entering a market using local capabilities and expertise of a Nationally Recognized brewery who had an established distribution channel.
Absent the distribution network, the task of setting-up the logistics network would have been a very time-consuming and painstaking task.
What type of FDI strategy does my company’s distribution mode set-up describe; Horizontal vs Vertical? Would it make sense to keep these two product distribution activities separate….thoughts?