Pizza Patron Growth Strategy
Pizza Patron Inc. is planning to expand the business into Mexico where several growth strategies could be used. Pizza Patron could offer a master franchise by acquiring an existing company, or by building a successful corporate store. Several factors will determine what the smartest choice is for Pizza Patron to expand internationally. Analyzing the strengths, weaknesses, opportunities, and threats is essential when considering moving a business into a new market, also known as the SWOT analysis.
The case study already has analyzed that Pizza Patron would most likely be successful in the Mexican market. Their conclusions were based on factors such as the proximity is close to the U.S., the Pizza Patron customer base is 60% Hispanic, and 90% of their employees were born in Mexico. Pizza Patron also has corporate knowledge of the Mexican market, established infrastructure is offered in Mexico, recognition of the Pizza Patron brand is well-known, and the trade laws will not hinder the entry of the company. The 3 ways that Pizza Patron can expand into Latin America is to offer a master franchise, acquire an existing enterprise, or build a greenfield operation. Advantages of a green
A greenfield operation is when a parent company starts a new venture in a foreign country by building from the ground up. Advantages of a greenfield operation are that it provides great flexibility to meet the company’s requirements, a new facility would be designed to meet needs that will reduce maintenance in the future, and there is an opportunity to improve the corporate image. This entry strategy does not fit with the plan Pizza Patron had developed to go into the Mexican market. Previously mentioned, there is readily available infrastructure that can be acquired. With using the infrastructure that is already developed, instead of building, will show people and customers that they are part of the community and embracing the Hispanic heritage. The Mexican culture of Pizza