19). The family-friendly atmosphere at the company's restaurants has also been conducive to its growth, as well as Applebee's combination of good food and alcoholic beverages. For instance, Crandall and his colleagues suggest that the casual dining nomenclature ". . . includes such settings as Applebee's where the food comes with a relaxed atmosphere. The concept here is 'not-so-fast' food for aging boomers who may still crave a burger but now want to sit down and eat it from a plate, perhaps with a glass of wine" (p. 19). The company has a proven track record of success in its foreign markets, making further expansions a viable proposition as discussed further below.
Identification and Discussion of Potential Foreign Market and Proposed Entry Strategy
In general, companies have a wide range of entry strategies available to enter foreign markets, including using company-owned restaurants that use locally hired managers or franchises (Prater & Ghosh, 2005). Given the broad-based nature of regional and local differences in beverage and food preferences, the use of local talent is regarded as essential to success in either case (Tavoletti, 2011).
Anticipated Challenges in the Foreign Market and Strategic Responses
The company must be prepared for changes in demand for its products due to economic downturns. In this regard, Crandall et al. (1999) report that, "The implementation of any restaurant-merchandising concept must be managed by appropriately setting prices. In order to do this, restaurant personnel must grasp the idea behind menu-item demand and the elasticity of that demand" (p. 19). In other words, local managers or franchise owners must have a keen understanding of how changes in price will affect current demand as well as how further demand will change as prices are increased or decreased (Crandall et al., 1999).
References
Applebee's form 10-K. (2011, December 31). United States Securities and Exchange
Commission. Retrieved from http://www.sec.gov/Archives/edgar/data/49754/
000004975412000005/din-12312011x10k.htm.
Crandall, R., Vozikis, G.S. & Sparks, D.L. (1996, Fall). Differentiating restaurant startups: A
conceptual framework. Academy of Entrepreneurship Journal, 1(2), 19-21.
Prater, E. & Ghosh, S. (2005). "Current Operational Practices of U.S. Small and Medium-Sized
Enterprises in Europe." Journal of Small Business Management, 43(2): 155-159.
Tavoletti, E. (2011). The internationalization process of Italian fashion firms:…
GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally. Works Cited Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009 http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml General Motors. (2009). Company
Foreign Market Entry Diversification Foreign Market Entry and Diversification Why Diversify? Diversification is expanding a company's current operations by adding new markets, products, services or stages of production to its current portfolio. It is all about entering a single or a series of new business lines that differ from its current operations (Cengage, 2006). Murphy Auto Company (MAC) is one of the largest luxury automobile company which wishes to diversify and enjoy even
N.D.P.16). Indirect Investment Options The indirect investment option avails itself of two avenues: licensing agreements or branch or representative offices. "Foreign companies with patents, trademarks, or other intellectual property are free to enter into licensing agreements with local companies. Licensing has the advantage of limiting a foreign company's exposure, since the company need not set up an office or a joint venture" (Price Waterhouse Coopers. N.D.P.18). The branch or representative office
market entry strategy of cosmetics producer SkinCeuticals on the Chinese market. SkinCeuticals is presented in the Company Presentation section. The SWOT Analysis section analyzes numerous strengths, weaknesses, threats, and opportunities associated with the company's situation. The China Analysis section presents some of the most important factors that influence the business environment in this country. There is also a section on Costs, Benefits, and Risks. The strategy of SkinCeuticals is
Running Head: INTERNATIONAL BUSINESS MANAGEMENT ADVISOR 4INTERNATIONAL BUSINESS MANAGEMENT ADVISORInternational Business Management AdvisorMarket Entry strategyCompany IntroductionSani-Matic Inc. is situated in Sun Prairie, WI, United States. It is a machinery manufacturing industry. The company has a total of 125 employees across its locations. The company generates about $ 24.52 million in sales. The company designs and produces automatic sanitary process cleaning equipment, from clean-out-of-place parts washers to clean-in-place systems and sanitary
Market Entry to Ivory Coast Company Profile and Background Market Analysis- Ivory Coast Risk Analysis Social and Cultural Analysis Economic Analysis Political and Legal Analysis Market Entry Strategies Marketing Mix Product Promotion Price Place and Distribution Branding Market Entry to Ivory Coast Company Profile and Background Barilla Group is an Italian food company whose headquarters are located in the city of Parma. The company also has its operations in various nations in Europe. Barilla was established in the year 1877, initially as a bakery shop and
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now