Peru Business Strategy Analysis

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Business strategy is a long-term plan of actions intended by the business to attain its set of goals or objectives. The business strategy states ways business conduct to achieve its desired goals at a certain period. It can also be defined as a roadmap that guides business to achieve and meet its set goals a certain period (Barney, 2006) Peru is located in central South America, bordering Ecuador, and Colombia on the north, Bolivia and Brazil on east and Chile to the south with the Pacific Ocean. Peru is ranked as 20th largest country in the world and third largest country in South America. The country strategic location allows easy access to Asia and North America markets (Thorp, 2001). Historically the Peruvian economy is based on countries …show more content…

Mexico, Chile, and Brazil are major exporting countries to US market. In 2013, Peru was the 40th largest supplier of imports to the United States of America. In 2013, Peru agricultural exports to unite states totalled to 1.3 billion. Which included fresh vegetables ($327 million), fresh fruits (excluding bananas) ($202 million), processed fruits and vegetables ($269 million) and coffee (unroasted) ($173 million) (Diop et al, 2005). On April 12, 2006, the two countries signed comprehensive free trade agreement called United States-Peru Trade Promotion Agreement (PTPA). The agreement was for the liberation of goods and services between Peru and United States (Villareal, 2007). The PTPA agreement was enforced on February 1, 2009. The PTPA provide a secure, framework for the investors by removal of barriers between the two countries, and strengthen protection of the property, workers, and environment. PTPA has aided export of agricultural products from Peru to the United States of America it provides freedom to export goods to U.S (Levy, …show more content…

The strategy has made the country to combine its export as a tool for economic development and a way of poverty reduction. Peru has signed free trade agreements with several countries, making nearly 95 percent of its export covered by free trade agreements. These free trade agreements make the country easy to tackle external vulnerabilities in the market in times of crisis (Brown et al, 2002). FTAs also enable Peruvian products to enter Asian and European markets without any regulations. These trade agreements and market openness have made Peru increase number of exporting companies and the products, specifically in non-traditional exports. Trade agreements have made the country diversify in non-traditional foods. Moreover, trade agreements are valuable tools that have enhanced foreign investment attraction, productivity boosting in the companies and technology transfer through lower imports costs in quality inputs and capital

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