Ruth’s Chris: High Stakes of International Expansion
1. What did Hannah do to make a first cut in the list of potential variables? How did he get from 200 to less than 35 potential new markets? Which variables did he use in his decision making and why?
There were several variables used to cut down the list of potential markets. He did this by answering the following bullets Beef eaters – do people eat beef here.
Is it legal to import U.S Beef with the high USDA Prime Beef standard Population/high urbanization rates – target customer is a well-to-do beef-eater, does this area have a densely populated large enough pool? High disposable income?
Do people go out to eat?
Affinity for U.S brands? Or are they overtly anti- United States 2. What other, unused variables might prove useful when assessing the attractiveness of particular international markets? Why?
They should look into seeing how political relationships (laws, key connections, loopholes) can potentially open up doors into certain areas that would be potentially attractive markets. The current state in some of top prospective countries did not allow importing of U.S beef, but Hannah felt this was more political than cultural. If laws change or political environments become friendlier for entrance, Ruth’s Chris can possibly be one of the first to enter, giving them a leader advantage.
3. What would be your choice of top 5 countries? How did you reach your conclusion? My top 5 countries are chosen based on a combination of the per capita beef consumption, urbanization rate, population, and per capita GDP displayed in the data table in Exhibit 4. Bahamas has one of the highest per capita consumptions other than the U.S, but it’s population is considerably smaller than the rest of the other countries so it may have a smaller pool than others. Still, it is a place worth looking for considering it does have a high tourist market. Spain has a low urbanization rate but a high per capita beef...
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