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Ruth Chris: The High Stakes Of International Expansion

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Sonia Ngow

on 2 October 2013

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Transcript of Ruth Chris: The High Stakes Of International Expansion

Ruth Chris: The High Stakes Of International Expansion
Marketing Strategies Adopted
What are the variables that Hannah takes into account before deciding on which international market to enter?
Our Top 5 Opportunities
History
Overview
founded by Ruth Fertel in 1965

first franchised to Tom Moran in 1976 and as expanded ever since

Dan Hannah, the vice president of business development now looks at expanding the brand internationally
Product Development
Advantages:
bring new varieties to customers
allows the company to connect with their customers’ changing taste
Disadvantages:
innovation of new products are expensive and risky
could jeopardise Ruth Chris's brand positioning
Diversification
Advantages:
bring new varieties to customers
allows the company to adapt their products to the locality of the market
Disadvantages:
could lead to brand dilution or brand confusion
Market Penetration
Market Development
Advantages:
expands the customer base leading to a sales increase
increases visibility and gains a greater name recognition
Disadvantages:
leads to higher cost
there will be political and societal differences
bad management could lead to damaging its reputation
Advantages:
same strategies can be used for all restaurants to serve the market
could bypass competitors by being dominating the existing market
Disadvantages:
each market can't support more than a few restaurants as it targets a small target group
could be difficult to convert customers who are loyal to other brands

Market Development Strategy is used to bring these around the world!
Variables taken into account to determine potential markets
Beef-eaters
Legal to import U.S. beef
Population
Disposable income levels of consumers
Affinity for American brands
Consumer dining habits

----> Exhibit 4 displayed the use of these variables
to narrow the 200 countries to 33 countries.
Unused variables that would have been useful
Political stability
Competition and ease of doing business
Regulations and bureaucratic procedures that may limit its growth
Singapore

- growing affinity for Western-products

- per capita GDP of US$28,100 (5th wealthiest in the
world)

- 100% urbanisation rate

- 3rd most expensive Asian country to live in

- Existence of rival Morton's Steakhouse




United Kingdom

- developed country with high standard of living

- comparable GDP with the U.S.

- little political risk

- similar eating habits as the U.S.

- has affinity for American products
Germany

- high standard of living

- largest national economy in Europe

- lesser affinity for American products
than U.K.


Bahamas

- second to U.S. for per capita beef consumption

- small population but has high tourist activity levels



Spain

- third behind the U.S. and Bahamas in
per capita beef consumption

- a relatively large population of over
40 million

- per capita GDP is 8th largest in the
world


Would these variables change if a different mode of entry was employed?
NO!
All the variables will still be used to analyse business opportunities regardless of entry mode. However, the venture partner may need to be research on as well in the case of joint ventures.
Internal & External Challenges
Internal Challenges
Company policies on international expansion
External Challenges
The worldwide economic crisis and credit crunch

The politics of new markets

THE END
THANK
YOU
NO!
Would these variables change if a different mode of entry was employed?
NO
All the variables will still be used to analyse business opportunities regardless of entry mode. However, the venture partner may need to be research on as well in the case of joint ventures.
Group Members:
Sonia Ngow Li Ch'ng (12059002)

Joyce Ang Chiann Vern (12055273)

Beatrice Low Qiao Yan (11028487)
Full transcript