Outback Steakhouse Goes International

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Jean-Marie le Corre – 3ème année / Promo 10 International Business Strategy - Case preparation

Outback Steakhouse goes international

Problem statement: Faced to US Market soon saturated, and with incentives given by foreign demand for franchise, Hugh Connerty, president of Outback is considering international expansion. However, benchmarking shows different stories, successful or not, that makes the firm wonders about what would be its international strategy and what would be the operational change needed. Outback Steakhouse (OSH) today Outback was started in 1988 by Chris Sullivan, Bob Brasham and Tim Gannon with 2 stores. OSH had been the fastest growing steakhouse chain with 200 restaurant in 1995. Focused on casual dinner, success had been mostly held through the high quality policy, the entrepreneurial spirit of the firm and the well being of the staff. OSH sees the market being satrated within 4-5 years (at the time of the case), and besides international expansion, seeks a diversification in the Italian dining segment. SWOT analysis Strength Recognized High Quality and super value of meal it serves Strong entrepreurial spirit Low turnover due to an internal policy focused on the well being of employees Good geographical strategy that target customer where they are (B-location with A demographics) Very good relation with suppliers willing to follow OSH strategy of international expansion Weaknesses: No international experience No brand awareness in foreign countries Very tights links with suppliers may makes OSH too dependent on them

Jean-Marie le Corre – 3ème année / Promo 10 International Business Strategy - Case preparation Opportunity: High potential of foreign markets Better potential for franchise as they traditionally perform better that the company-held restaurant. Demand for foreign franchise Threat: Inability of suppliers to follow OSH internationally. It would force OSH to find themselves local suppliers and delay the expansion Faster...
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