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Lucchetti was one of the two main pasta makers that dominated the market in Chile. In 1995, the management of Lucchetti sought to expand the geographical horizon of its business, and Peru seemed to be a strategic option. Case (A) analyzes the pasta market in Chile, especially the role of the economies of scale, advertising and distribution that determine industry competition. The case then describes the pasta market in Peru. Case (B) details Lucchetti’s entry in Peru, the reaction of the competitors and it describes some subsequent developments in the market and the context that affect the performance of the firm. Case (C) summarizes some subsequent events. The sequence of cases permits to analyze the interaction and endogeneity between market and non-market strategies.