Franchising would be good mood of entry for Ruth’s steak house as it obviously demonstrates that its four international market -Canada, Hong Kong, Mexico, Taiwan were performing successfully in term of market share, profitability etc. However, if it prefers to enter international market through joint venture i.e. equity based company that is owning some portion of new business, then critical variable would be differently than franchising’s. Some of them are as follows;
• Looking for partner:
At first, they have to find the joint venture partner before they start their business operation in international market. They can use the government data to determine the number of the potential business partner in foreign market. E.g.- Ruth’s Chris restaurant …show more content…
It had well trained staff that provide excellent service for it client’s Paulo is most urbanized city and it is the most populated city in Brazil. With the population of more than 20 million, Ruth’s Chris had huge opportunity to appeal to large portion of potential customer as more people are living and working in city. In other word, Brazil is highest meat consumption in south America which grew 44 kilograms per person in 2010. additionally, it is also largest exporter of beef in world with excellent quality of meat. that match us standard. This had led to decrease the import and transportation cost for Ruth’s Chris in Sao Paulo. In order to open steak house in Brazil, it franchised need a high stat -up cost and follow strict criteria such as liquid net worth at least …show more content…
They must consider what mode of entry they going to take. This can done through proper market research and choosing right mode of entry in right rime in right period. vii)The name alone attract many want to be franchiser from all over world but it had strict condition to accept.eg’’-Liquid net worth of at least $1million USD’’ and so on. So, Ruth’s Chris can increase number of franchise operation in international market through flexible approach i.e. potentially changing franchise criteria to meet the majority of investor. viii)The north America is leader in meat consumption with it high population and urbanize rate, Ruth Chris should focus on high density area in Canada (less number of competitor) as large number of cattle farmer (beef eater) targeted.
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ix) Asia being largest continent with highest population still had lower level of beef consumption so Ruth’s Chris had focus on building the brand in potential countries i.e. china and japan but product importation could be challenge.
x)Global product consistency-availability of product, stable foreign supply chain, operation and logistics team and consumer target in general (population, income, beef eater
• Looking for partner:
At first, they have to find the joint venture partner before they start their business operation in international market. They can use the government data to determine the number of the potential business partner in foreign market. E.g.- Ruth’s Chris restaurant …show more content…
It had well trained staff that provide excellent service for it client’s Paulo is most urbanized city and it is the most populated city in Brazil. With the population of more than 20 million, Ruth’s Chris had huge opportunity to appeal to large portion of potential customer as more people are living and working in city. In other word, Brazil is highest meat consumption in south America which grew 44 kilograms per person in 2010. additionally, it is also largest exporter of beef in world with excellent quality of meat. that match us standard. This had led to decrease the import and transportation cost for Ruth’s Chris in Sao Paulo. In order to open steak house in Brazil, it franchised need a high stat -up cost and follow strict criteria such as liquid net worth at least …show more content…
They must consider what mode of entry they going to take. This can done through proper market research and choosing right mode of entry in right rime in right period. vii)The name alone attract many want to be franchiser from all over world but it had strict condition to accept.eg’’-Liquid net worth of at least $1million USD’’ and so on. So, Ruth’s Chris can increase number of franchise operation in international market through flexible approach i.e. potentially changing franchise criteria to meet the majority of investor. viii)The north America is leader in meat consumption with it high population and urbanize rate, Ruth Chris should focus on high density area in Canada (less number of competitor) as large number of cattle farmer (beef eater) targeted.
.
ix) Asia being largest continent with highest population still had lower level of beef consumption so Ruth’s Chris had focus on building the brand in potential countries i.e. china and japan but product importation could be challenge.
x)Global product consistency-availability of product, stable foreign supply chain, operation and logistics team and consumer target in general (population, income, beef eater