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It expended into these countries by using the same expansion model for all markets in less developed countries.

The expansion model requires Chupa Chups to:

? Establish partnership with a local organization in a country with underdeveloped distribution network

? Take a majority share of the partnership

? Provide only basic machinery to its partners in the beginning

? Only let new partners produce Chupa Chups Classic, the most basic product, in order to prevent the leakage of information and technology

? Let partners continue to maintain their own successful confectionary line

? Basic raw materials such as glucose and sugar will be sourced locally while other materials such as packaging and complex lollipops are shipped from Spain

? Management consists of both expatriates and local staff

? Select top, dedicated, distributor with own manufacturing facilities and not too many other product lines

Chupa Chups has been successfully using this expansion model in developing its market in less developed countries...

There are many advantages in using this model such as, the standardization in implementing the model, freedom for its partners to continue producing their own line, and it lets Chupa Chups gradually transfer its technology to its partner after some relationships and trust have been established. However, the main disadvantage of this strategy is the risk that Chupa Chups have to face especially entering into countries that are politically unstable such as China and Russia and taking majority share of partnership...

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