Business 401 Case 3: Strategy for Roy Choi's Restaurant Business & Xiaomi (Essay Sample)
Module 3 - Case
Marketing and Strategy
For this assignment you will looking at two completely different companies that sell completely different types of products. However, both companies have strong international potential. As you read about in the background materials, different types of products lead to different types of strategies regarding standardization or adaptation and whether you decide to become a global, multi-domestic, or transnational corporation.
The first business you will look at is Roy Choi’s restaurant empire. Choi started out with a single food truck in Los Angeles, but soon gained celebrity status as one of the country’s most famous chefs and the inspiration for the recent movie Chef. Food trucks soon became huge craze in Los Angeles, and Choi has since gone on to open up multiple additional restaurants and even has plans for a fast food chain. His fame and multi-ethnic cuisine gives him large potential if he ever decides to take his business overseas.
The second business to look at is Xiaomi, a Chinese smartphone company that is starting to expand internationally. The smartphone business is a notoriously tough market with dominant competitors such as Apple and Samsung. Xiaomi has gained market share in China and is starting to expand into some neighboring countries. Given the high price of smartphones from Apple and Samsung, there may be room for a lower priced competitor in the global smartphone market.
Do a careful review of the concept of standardization and adaption in Herbig (1998) and the concepts of multi-domestic, global, and transnational strategies in Jeyarathmm, M. (2008) and Steers and Nardon (2005). Then do some research on Roy Choi and Xiaomi in the Trident library or other sources. Here are some articles to get you started:
Walker, T. (2013, Dec 14). Keep on trucking. The Independent [Proquest]
Frausto, M. (2014, Sep 10). Choi's eyes bigger than his stomach? Orange County Register [Proquest]
Larson, C. (2014, Dec). Xiaomi's resolution: Double its smartphone sales volume in 2014. Business Week [Proquest and Businessweek.com]
Mozur, P. (2013, Oct 08). How upstart Xiaomi rattled China's smartphone race. Wall Street Journal [Proquest]
Once you have finished your research, write a four to five page paper answering the following questions:
1. What kind of strategy would you recommend if Roy Choi decided to expand his food truck or restaurant business internationally? Would you recommend product standardization or localization? Which overall strategy would you recommend – transnational, multi-domestic, or global? Explain your reasoning and apply the concepts from Jeyarathmm, M. (2008), Steers and Nardon (2005), and Herbig (1998).
2. What kind of strategy would you recommend for Xiaomi’s international expansion? Would you recommend product standardization or localization? Which overall strategy would you recommend – transnational, multi-domestic, or global? Explain your reasoning and apply the concepts from Jeyarathmm, M. (2008), Steers and Nardon (2005), and Herbig (1998).
•Answer the assignment questions directly.
•Stay focused on the precise assignment questions; don't go off on tangents or devote a lot of space to summarizing background materials.
•Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure they are from a credible source.
•Reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 13 and 14 on in-text citations. Another resource is the “Writing Style Guide,” which is found under “My Resources” in the TLC Portal.source..
Marketing and Strategy
Marketing and Strategy
Marketing is the process by which a firm plans and executes the conception, pricing, promotion, and distribution of ideas, goods and services in order to create exchange with customers while increasing their utility according to individual and organizational objectives. The essay is focused on two companies with the need to grow and expand their products internationally. The purpose of the essay is to identify the best strategies for growth for the two companies that will steer product development in different regions. Standardization and localization are the two sought after strategies but cannot be both relied on. The essay will give a broken down analysis of the best strategies to be used by the two companies. Standardization involves using the same products in a different foreign location while localization involves customizing the products to reach the standards, tastes and preferences of the target foreign market.
Strategy for Roy Choi’s Restaurant business
In order to increase the demand for Roy Choi’s products in the different locations globally for Roy Choi, the best product strategy for him to use is the localization strategy. This strategy will be appropriate since it will focus on the culture and livelihood of the people involved (Frausto, 2014). The restaurant is mainly based on an English and Korean menu which does not apply in many parts of the world. In order to expand and experience growth, Roy Choi has to consider a market survey on al the places he intends to expand on to know their tastes and preferences. Being a fast food venture, not many cultures appreciate the concept, there has to be a strategy involved to ensure that the people fit in with the branches.
English is spoken in many parts of the world, but is not eloquently spoken. The need to localize is also in order to learn the language of the people from many parts of the country and find an appropriate way to approach them. This will therefore help in the interpretation of the products. If Roy Choi decides to use localization, the names of the chain of restaurants will also differ in the various parts. The naming of the restaurants according to the different cultures and languages will cause the population to feel respected and considered in the venture, another thing to do while considering this strategy is that Roy Choi needs to know the population distribution of the people and know what kinds of décor best interest them and in what sense. Knowing the details to this will give him an idea of the spots to put up his branches and the ones to avoid.
The reason for learning all this is in order to be at par with the people’s expectations and also show respect for their culture and that way demand will increase. With the localization strategy, it will be easier to advertise the products and also to hire a competent staff. The strategy will also provide employment opportunities for the local population rather than focusing only on the headquarters as a source of labor for other countries. It will also be less hectic since the employees from the local areas will only require training for soft skills and good supervision.
In this case therefore, the overall strategy that is best applicable for Roy Choi is the multi-domestic strategy (Kraus et al, 2014). The strategy will contribute to the product localization strategy that will ensure that all the products and activities are customized to meet the needs of all the branches that will be set up in different parts of the country. For example, Roy choi could merge the taco truck products with the most preferred delicacy or snack in the area. This will give the restaurant and food truck business maximum responsiveness from the local people. The company will have to f...
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