California\'s major endowments: entrepreneurship, educated labor, agricultural r

Question

California's major endowments: entrepreneurship, educated labor, agricultural raw materials
California's major industries: entertainments, technology, education services, agriculture (food products)
Market infiltration: creating specialized food products (vegan & allergy sensitive food goods), using technology and online tools to address health care and logistical problems, exporting "Bay-Area style" education.

What would be the best strategy to infiltrate the markets identified i.e. Startup company that can easily maneuver through market forces or through the support from a larger sponsor/company that has established resources and networks?

How would you finance the R&D and deployment of your project (general idea, don't need specifics)?

How would you establish contact with partners in foreign countries/markets that may be impacted by your project (general idea, don't need specifics)?

Explanation / Answer

The best strategy to infiltrate the market will be by catering to the health needs of the consumers and making them aware of the benefits offered by the company’s products. As the industry is about specialized food products, it has been seen that consumers usually get inclined towards trusted brands when it comes to their health and well being. Hence launching a startup will not be that fruitful as the consumers may have trust issues with the new company. Launching the products through an alliance with a large sponsor having a good brand image will be quite profitable for the company as the customers will be able to trust the products and incorporate them in their daily lives.

As the products will be launched through a joint venture between the subject company and the established sponsor, the companies can contribute for R&D and deployment based on the ratio of their stakes involved in the venture. R&D is quite critical for venturing in the food and nutrition market, hence the companies must be ready to spend a good budget for the same.

Franchising can be a very fruitful option for the company to venture in the international markets.

Franchising: the company intends to conduct business of the parent company, called the franchisor, in the international market. An agreement binds the franchisee to the franchisor such that the franchisee needs to pay operational fee to the franchisor.

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