Strategies Used By OSI Industries To Become A Global Corporate Company


Growing successfully in the local market is quite a substantial development for every business, but venturing successfully into the global market is like earning a gold medal in Olympics. OSI Industries is one of the companies that can boast of this achievement because today it is one of the leading food providers in the world. The company began as a small butcher shop, and after a few decades in its operations, it has ranked to be among the top companies in the food industry. This development cannot happen overnight, and the OSI group went through a series of expansion stages.

In countries such as Australia, Brazil, Poland, Mexico, Hungary and different parts of the Pacific Rim, OSI expanded their business by creating joint ventures between the 1980s and early 1990s. For instance, OSI Industries formed a joint venture with K&K Foods in Taiwan in the year 1987 marking their first entry in Asia-Pacific. The company had another joint venture around the same time known as GenOSI in the Philippines. In the year 1992 and 1996 the company opened Wholly Foreign-Owned Enterprises (WFOE) in Beijing and Shanghai, China respectively. OSI Group acquires Baho Food. The good thing is that by the year 2001, China had negotiated their way into the World Trade Organization (WTO) and this provided a great opportunity for foreign companies to establish a market in the country.

The main strategies followed by OSI Industries to venture into the Chinese market among other global markets is the establishment of joint ventures and WFOEs. The company continued to supply food products to McDonald’s, but they were now working with other multinational food companies such as Saizeriya, Burger King, Starbucks, Yum, Subway and Papa John’s. While OSI concentrated more efforts on the global growth and expansion, the company did not disregard the local market and thus continued to expand market in the United States as well. In fact, by the year 1986, they had established a new plant in Chicago, partnered with Nation Pizza and Foods in the year 1994 and acquired another facility in Oakland, Iowa in the year 1996.

OSI industries did not produce poultry products until the early 2000s when the company integrated their operations with Amick Farms in the United States. This was followed by formation of two joint ventures in Shandong and Fujian province in China targeting to produce poultry products in the country. Fresh produce business also did not begin until the early 2000s when OSI Group acquired some food companies to assist them to flourish in the business segment. The company values the partnership with other companies in the industry because they understand the value of working as a team. Whether through acquisition, opening new facility and WFOEs or establishing a joint venture, OSI Industries have mastered the trick of venturing into local and international markets.