Chris Sullivan, Bob Basham and Rim Gannon founded Outback Steakhouse. They saw an untapped opportunity for serving quality steaks at an affordable price thereby filling the gap between high priced and budget steakhouses. Outback was able to position itself as a firm that provides not only excellent food but also cheerful, fun and comfortable experiences. There are a combination of business practices and features that made Outback Steakhouse successful in the US market, which are: 1) Astute positioning within the intensely competitive US restaurant business through differentiation strategy. Outback Steakhouse offered high quality food and service, relaxed ambience and comfortable …show more content…
This strategy involves lower cost when compared with direct management and joint venture. It reduces portfolio risk by diversifying into new consumer market and the firm’s structure is appropriate for this strategy and resource base. (c) Which countries to enter first
Outback needs to understand the risk and potential of entering a particular market. Also, based on income, infrastructure, demographic and trade laws; Outback should expand first to Canada, then Mexico, Japan, the U.K, Germany, Saudi Arabia and UAE. (d) Whether Connerty is the right person to head the international division Connerty is not the right person to head the international division as he has no experience abroad, his experience is Limited to the US (south Georgia and Northern Florida). I recommend a more experienced person handle the expansion of Outback Steakhouse with experience in Joint venture and franchising internationally.
Appendices
Porters Five Forces
Rivalry: HIGH
Competitive Rivalry * Competition in the restaurant industry is very strong due to the fact that all restaurants are basically going after the same potential