About international expansion - Case Study Example

International Expansion International Expansion Question The decision criteria by Ruth’s Chris to expand internationally include product development, diversification, penetration, and market development. The product development phase targets introduction of new types of restaurants in current markets. Ruth’s Chris did not lay considerable emphasis on this approach. Since the company had established 92 fine dining steak establishments, the firm did not see a major need. It saw not value in diversifying in new restaurant types.

In the diversification approach, the strategy was aimed at providing new types of restaurants in different markets. Ruth’s Chris did not consider this approach. Out of the four markets that the company operated internationally, the company noted that the current dining experience it offers its clients would be appropriate for new markets without risking confusion or dilution about the brand. In terms of penetration, Ruth’s Chris considered the option of adding more restaurants in the same market.

Plans for implementing this strategy were underway, particularly in the case of new restaurants present in Canada. Nonetheless, the major drawback for affecting this approach is that the restaurants would not be able to offer ubiquitous serves compared to fast food establishments, such as McDonalds. Furthermore, it would not be possible for even for the world’s biggest cities to accommodate more than six steak houses owned by Ruth’s Chris. In terms of market development, the company aims at adding similar restaurants in different markets.

This approach is obvious in terms of increasing the revenue of Ruth’s Chris in four global markets, including Hong Kong, Canada, Taiwan, and Mexico. These franchisees would be profitable and provide testimony to the company (Sagepub, 2015).Question 2The diversification approach is the riskiest one for Ruth’s Chris to implement. By introducing new types of restaurants in different markets, the company would be forced to make major investments in the establishment of stores. In addition, the new stores would be different from the mother company, confusing the customers about the operations of the company.

For instance, those customers who are loyal to the brand would perceive the different establishments differently, leading to loss of clients. As a result, the company would end up making losses, bringing down the overall competitiveness of the company in the global marketplace.Question 3To attract clients, Ruth’s Chris needs to come up with a strategy that would be appealing to different types of clients with different consumption needs. In this case, the appropriate approach by the company is to embark on the market development process.

By introducing similar restaurants in different markets, the company would adhere to the needs of the clients appropriately since it would be likely to serve clients who are loyal to the brand. The company would be in a position to broaden its operations in major markets, allowing it to welcome clients from different parts of the world. This way, the company would manage to boost its profitability and competitiveness, allowing it to outdo its rivals in the marketplace.Question 4In order for the Ruth’s Chris to operate successfully when undertaking operations in other countries, it should sustain is brand name, but provide various products to address diverse needs of clients from different global markets.

This move would play a crucial role in terms of meeting the needs of clients based on their diverse cultural needs.Question 5As a global company, Ruth’s Chris needs to implement diverse marketing strategies to adhere to the different requirements of countries. The company needs to evaluate the marketing needs of different countries based on their influence that their culture has. This way, the firm would be appealing to clients from diverse countries, thus encouraging them to consume its products.

Reference Sagepub. (2015). Customer Acquisition Strategies and Tactics. Retrieved from http://www.sagepub.com/upm-data/40143_Chapter5.pdf