Ruth Chris
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Questions: Ruth’s Chris
What did Hannah do to make the first cut to 35 potential new markets? Which variables seemed more important in his decision-making? Which unused variables might have been useful?
Hannah and his team looked at product development, diversification, penetration and market development as a strategy for entering (a) market. They decided on the market development model or adding more of the same restaurants in new markets. One of the primary indicators used to determine which markets to enter was the countries beef consumption. The other (3) main factors that were also taken into account were population, urbanization and per capita GDP. Some other indicators that were first discussed but determined difficult to determine were high disposable income, eating habits of locals, legality of imported US or Australian USDA Prime beef, and affinity to US Brands.
Variable needing additional review would have been a more comprehensive review of competition in local markets. Are there others in these markets that offer a similar high end dinning experience, at what cost, and are our menu’s similar in nature.
What would be your choice for the top five opportunities? The top 10? Explain what variables you used in developing your choices.
My top five choices would have been the United States, Canada, Mexico, Taiwan and China (Hong Kong). The main reason for this choice is because I disagree with the model that Hannah chose. I believe that if you want to grow your market quickly and with the least amount of risk, grow it with the penetration model. Simply put more of the same restaurant in the same markets. These markets have already proven to be highly successful and the brand in known in these markets, with primary growth potential still coming from US markets.
My next 5 markets (Countries) of choice are not as easy, a different model would have to be chosen. In staying with the model that Hannah chose, market development model, for the second phase of expansion, I would chose the Japan, South Korea, Singapore, Bahamas, and Ireland. Japan, South Korea and Singapore would be chosen because of Per Capita Beef consumption, Urbanization, and population off of exhibit 4. I also chose these three locations due to large amounts of international business trade between the US and these countries. I struggle to pick two other countries using this model and this data. However I will chose Ireland because of their consumption of beef, high GDP and urbanization rate. The Bahamas I chose for a different reason. The Bahamas is a popular location for tourism and travel by US citizens. These high areas of tourism would lend themselves as popular location for high end restaurants.
It is not a foregone conclusion that Ruth’s Chris should go global.
What are some of the costs, weaknesses for Ruth’s Chris in going global, and threats to their success in foreign markets?
The cost of going global