Hard Rock Cafe Essay.
Hard Rock cafe was found in 1971, and from that point of time, Hard Rock applies the famous concept “experience economy” to its global business. The concept focuses on three main strategic points: custom meal from the menu; eating with special rock music; and targeting on tourists. 70% Hard Rock’s customers are from tourism (Heizer & Render, 2010). However, economic crisis makes Hard Rock change that strategy by widening customer target. While tourism is affected much by economic fluctuations, number of local customers seems to be more stable. As a result, Hard Rock Cafe Nottingham, England opened in April 2002. “The decision to open a Hard Rock Cafe in Nottingham is further evidence of the city's rise in importance as a prime entertainment area.”, said BBC.[1]
Nonetheless, surprisingly, Hard Rock Cafe Nottingham closed in November 2007. Other cafes in Birmingham and Leeds, England also closed that year[2]. There was no explanation given by Hard Rock’s top managers, but it might be one, two or all of the following reasons: Firstly, Hard Rock finds that the openings in non-tourism cities do not follow the global strategy which aims to “prime entertainment area”. When the global economic recovers from crisis, Hard Rock would have more reasons to strictly pursue the winning “Experience economy” that allowed the firm to expand from 1 cafe to hundreds in 57 countries over the world. The second reason might be the profits of Nottingham, Leeds and Birmingham cafes were not as high as expected. Thirdly, there might be another Hard Rock cafe/bar opening soon in nearby area. No matter what the reason is, the closing down of those cafes exposes kind of failure.
In summary, Hard Rock Cafe global strategy is superior in normal economic condition; however, it has trouble when global economy fluctuates. Economic crisis has influence on every business firms but Hard Rock must incur more than average. The opening and closing of Hard Rock cafes in some non-standard
Nonetheless, surprisingly, Hard Rock Cafe Nottingham closed in November 2007. Other cafes in Birmingham and Leeds, England also closed that year[2]. There was no explanation given by Hard Rock’s top managers, but it might be one, two or all of the following reasons: Firstly, Hard Rock finds that the openings in non-tourism cities do not follow the global strategy which aims to “prime entertainment area”. When the global economic recovers from crisis, Hard Rock would have more reasons to strictly pursue the winning “Experience economy” that allowed the firm to expand from 1 cafe to hundreds in 57 countries over the world. The second reason might be the profits of Nottingham, Leeds and Birmingham cafes were not as high as expected. Thirdly, there might be another Hard Rock cafe/bar opening soon in nearby area. No matter what the reason is, the closing down of those cafes exposes kind of failure.
In summary, Hard Rock Cafe global strategy is superior in normal economic condition; however, it has trouble when global economy fluctuates. Economic crisis has influence on every business firms but Hard Rock must incur more than average. The opening and closing of Hard Rock cafes in some non-standard