First of all the title of the thesis is a little misleading. It is not a thesis about the Danish pig industry, it is a thesis about the Danish food technology industry, which was established when the Danish pigs and specially bacon began to be exported to the lucrative British market in the end of the 19th century. The history of the globalisation of the Danish pig industry is important to introduce since it has had a massive impact on the whole Danish food industry (food cluster, in Danish; fødevareklyngen). As the pig and food industry evolved the Danish food technology industry flourished and has since then been known for its quality being second to none, a Silicon Valley for food technology with innovative solutions and products. An introduction to the whole food industry’s economic data is made and the importance of the size and demand of this industry has been determining for Danish export in more than 200 years. The thesis analyses the Danish food technology industry in the form of known international trade theories such as Porters Diamond, Alfred Marshall’s phenomenon industrial districts, external economies of scale and Dunnings OLI. The thesis shows that there indeed is a cluster in Denmark for food technology and that the industry is already internationalised. There is an uncertain link to the Danish Pharmaceutical industry, which can have to do with the fact that both industries require a highly specialized and skilled labor force. It seems that there is a regional cluster in the North part of the Island of Zealand. Further more it shows that there are specialized suppliers, labor market pooling and knowledge spillovers and external economies of scale, as described by Alfred Marshalls Industrial industry. This supports the fact that Danish Food technology is an industry among the best in the world and they do not lack ownership advantages. The industry is characterized by, that the knowhow in the firms is tacit knowledge and there is not insignificant transportation cost connected with the product and it is an advantage to be close to the customer or at least be able to respond fast in case of a production breakdown on e.g. a slaughterhouse, where the food technology equipment is found. 5 In the analysis of the four BRIC countries China stands out as the most important and interesting market compared to India (Brazil and Russia are omitted in the delimitation). The middleclass in China is bigger and richer, the demand is bigger and the production of food is larger, there is a far better infrastructure and the focus on the sector at the moment is present in China. Simultaneously the whole Danish food industry is present on the Chinese market and is in big favour among the Chinese population, which means that the Danish food industry as already kicked the door in to the market. The analysis shows, that the food technology firms are not yet present as massive has the whole food industry combined, which indicates that there is an unused potential for the Danish food technology industry in China. These factors conclude that there is a lucrative market in China for the Danish food technology industry. An analysis is made that the necessary advantages regarding Dunning OLI are present for the industry, and that FDI therefore is a possibility. This analysis turns out to be positive as the industry contains ownership, local and international advantages. Finally the entry mode of Joint Venture is discussed as the best form of entry mode for the small and medium sized food technology firms.
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||85|