New York Fries Memo One of the main motives for internationalizing was the need for expansion outside of Canada. NYF does not occupy every shopping mall in Canada, only the top tier malls. This means that opportunities in Canada are quickly running out. Another motive for internationalizing was the development of the SSBC brand. This brand offers hamburgers to the public which is seen as a complimentary item to French fries. The SSBC would be predominantly located in big box centres which offered new areas of growth for the brand and the company. A third reason for expansion into international markets is the greater affinity for Western culture and food that emerging markets have. Consumers around the world are more open to buying …show more content…
This was tried in India. There was concern over this expansion method because it moved away from the tried and tested formula of appealing to impulse shoppers in shopping malls. It was believed, however, that it was still appropriate to expand here because Indian consumers were quickly beginning to develop favourite Western quick-service restaurants based on the selection already available to them. For the expansion into Hong Kong, NYF decided to partner with a group of franchise owners called Next Step Limited. This group was led by two young men who were raised in Hong Kong and Canada. This group provided NYF with partners who not only had an appreciation for both cultures, but also had the necessary contacts for securing prime real estate in Hong Kong. The goal of NYF for the short and intermediate term should be to continue to develop the NYF brand and hold off on trying to internationalize the SSBC brand. NYF does not have enough exposure internationally yet to even support its fry products, so trying to promote two different types of brands will stretch their resources too far and both will suffer as a result. The NYF brand is already great and has a proving method for expansion and growth. Once this band is established for a few years in a new market, I think then it would be wise to bring in the SSBC brand. They can then leverage the reputation of the NYF brand into promoting the SSBC brand as an equally great yet different
An unsuccessful attempt to expand into US markets also puts the companies at risk for experiencing loss in capital. Many new stores will have to be designed and built in the US markets in convenient locations. One must recall that Wendy’s absorbed the company in 1995, and only 11 years later spun it off as its own company again. Wendy’s could not figure out how to successfully expand Tim Hortons in the US, which makes one wonder if Burger King will be any different. It has been proven before through the example of Wendy’s and Krispy Kreme that it is difficult to penetrate markets across borders (Hemmadi, 2014).
High cost of entering new markets International growth is expensive. Entering new markets with a new brand
These three goals are focused on the U.S Market. Across its brands Smuckers aims to be the number one product in all of the lines that they compete in. The reason they started to expand was to protect itself from becoming an acquisition of a larger company. By expanding the company it has made itself less of a target and harder to become an acquisition by
To date all restaurants are company-owned and not franchised. Restaurants cover forty-three states in the U.S., Canada, England, and France. The only variation to the original model has been an increased environmental awareness and a “Test Restaurant” in Washington D.C. that serves Asian-Style fast casual food.
c. By expanding internationally, Canada Goose can have many opportunities to seek new markets, grow, increase sales, and improve its brand recognition overseas. With those extra sales, it will enable to exploit scale and scope economies; thereby it will have a source of competitive advantage over its domestic
Treating all of Canada as one market has many advantages. A company typically implements a global strategy when it wants to save money. A company can be more effective when it sells the same products to every market, because there is no extra time spent on differentiating the products per market, which means there are also no extra costs. Money is saved from buying in bulk and having a standard packaging. In return, the company can put more focus on the product and work towards changing and enhancing the product. The case states that the market share of Saralyn Mills has increased in each of the product categories in which it competes. By implementing a standardized strategy,
Ans. Until then they were happy enough simply to expand their business in US, after that reached a certain size and the company had the management time to spend on it then it was time to think about replicating that success abroad. Because the markets abroad are much more competitive than in America where it is a slayer of small businesses, except for fresh produce sellers. Globalization has taken off in recent years, before the turn of the century it was much more difficult and expensive for franchises to efficiently expand outside of their native country.
To increase the amount and type of stores internationally, as it is in the United States.
This case study determines the critical success factors used by Subway Restaurants Corporation to expand nationally, which the corporation wants to use also to expand internationally. In addition, this paper describes the competition and the prospect success in Asia-Pacific and Latin America. In general, the fast food industry is discovered with respect to the history and future plans of fast food chain Subway international for expanding and accretion in Asia-Pacific and Latin America, containing the four factors that Subway should use to compete and success in those markets. Each proposed country market has unique cultural and religious requirements should be realized by Subway, as well as the consumption patterns, market trends, and the franchise values which determine from the local traditional fast food compared to the viewpoint of Subway’s healthy alternatives and low expansion costs.
On the other hand, opening up a Potato Corner in Canada will be a great plan since, Canadians loves French-fries and they even celebrate it every 13th of July
♦ Reliance on franchising "associate" stores and opening a few new company-owned stores as a means of expanding nationally and internationally. However, franchise licenses were granted only to candidates who have experience in multi-unit food establishments and who possess adequate capital to finance the opening of new stores in their assigned territory.
Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become
Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.
Providing customers with the best of both worlds: west meets east. In addition to its radical strategic approach of localization with regard to its food, they extended that viewpoint when selecting their management team. By hiring Chinese executives, Yum! Brands is able to build relationships with the local suppliers more easily and quickly. It definitely helps with their competitive advantage that chicken is a staple meat in China. Given these factors, it is clear that KFC has a competitive advantage in this market. However, taking a closer look at the industry and thinking longer-term, the competitiveness is undesirable but there is still potential to improve profitability. See the analysis
For any company going out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market share, saturation of the local market, for getting the economies of scale of production, to use their excess capacity and use the resources where it is available at law cost.