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Foreign Investment Strategies


Marketing is an effective practice intended to support organizational profitability and performance. The purpose of this report is to describe the strategies FreshDirect needs to consider before investing in a foreign country. This company currently operates in different regions across the United States where it provides online grocery services. It delivers fresh juices, vegetables, prepared foods, and fruits to different customers. FreshDirect’s home market is the United States and it currently seeks to expand its operations in Brazil and China

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Potential Target Market: Critical Evaluation

FreshDirect is an online retailer operating in the American Food and Drinks sectors. The company has the potential to increase its gains by expanding its operations to China. The two cultural models for analyzing pertinent issues for this region include culture theory and Hofstede’s cultural dimensions model (Liao, 2017). Business leaders should be aware of these frameworks and apply them accordingly depending on targeted organizational goals.

The first theory can help investors understand how markets work due to people’s ideas, knowledge, values, and beliefs as social beings (Bissessar, 2018). Through the theory, it can be possible to learn more about the issues many Chinese people take seriously and consider how this company can include them in its new business model. The second model describes how cultural values and attributes dictate people’s behavior, relationships, and approaches or goals. Such attributes can support the company to develop a superior HR plan and culture that will deliver positive results.

Using the culture theory, it is notable that the American and Chinese societies present unique differences. For instance, Americans focus on the best ways to achieve personal goals, are religious, and would engage in practices that are progressive in nature. The Chinese, on the other hand, focus on collective goals and identify strategies that are in accordance with cultural norms (Liao, 2017). This observation explains why the company can rely on the collective issue to offer additional services and products that can meet the demands of the entire family (Liao, 2017). FreshDirect can also consider the aspect of spirituality to provide new offerings that resonate with the Chinese cuisine. The inclusion of medical herbs and vegetables can ensure that more customers are part of the business.

Hofstede’s model indicates that some challenges might emerge when designing the best HR plan. Specifically, the company would need to introduce a superior culture that promotes collectivism while providing direct instructions (Liao, 2017). The leaders at this company will formulate appropriate strategies to motivate their followers. These practices are not necessary for the American context. Such issues will be impactful on this company as it seeks to enter this market and achieve its potential (Bissessar, 2018). The consideration of additional technologies and platforms would be essential to attract more potential customers and maximize profitability.

Most of the people in China practice Buddhism, Confucianism, or Taoism. These spiritual approaches could affect the original model of this business. Investors and marketers can consider such aspects and make relevant adjustments. The available products, juices, and foods should also be in accordance with the cultural demands of the people (Liao, 2017). Some of the Chinese would be keen to prepare their servings and juices. The company will need to identify some of the best approaches to win the confidence of such potential customers and maximize online orders and subsequent sales. These cultural issues will, definitely, have significant implications on this business as it intends to venture into China.

The identifiable market attributes in this country include an increasing number of potential customers and the use of modern technologies. The company will also benefit from the availability of a wide range of products and traditional vegetables. Additionally, the Chinese are becoming more friendly and capable of trying new experiences and foods (Bissessar, 2018). These aspects explain why this business has higher chances of succeeding in this foreign market.

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However, the organization stands a chance to encounter various potential challenges in the market. First, the diverse cultural practices might affect the experiences of foreign investors. Second, the company might encounter difficulties while trying to develop the most appropriate organizational culture and structure. Three, the market opportunity challenges the original business model. Fourth, the involved investors will have to identify some of the best approaches to provide a collective experience to the people (Liao, 2017). Despite these challenges, a proper plan is capable of addressing the recorded issues and supporting the delivery of timely and sustainable results.


The above discussion has identified two models that businesspeople should take seriously when planning to invest in foreign countries. FreshDirect’s managers can consider some of the opportunities and trends recorded in China and use the available resources to meet the demands of more customers. The leaders should focus on the expectations of the targeted population, identify new ways to maximize their experiences and solve every emerging challenge. Such initiatives will support the delivery of timely results and make this company competitive and successful in the selected new market.


Bissessar, C. (2018). An application of Hofstede’s cultural dimension among female educational leaders. Education Sciences, 8(2), 77-91.

Liao, K. (2017). Impact of traditional Chinese culture on business-to-business relationship marketing and service firm performance. Journal of Business-to-Business Marketing, 23(4), 277-291.

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