Bus 401 WK 3 Case: Roy Choi and Background of the Companies

Bus 401 Wk. 3 Case Assignment
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Introduction
In a globalized world, companies have been pushed to make considerations regarding the choice of internalization strategies. This has seen organizations no longer targeting their own domestic markets but turning to international markets in conducting their operations. This paper therefore seeks to conduct a study aimed at determining internalization strategies employed in determining the entry methods of Choi Restaurant Empire and Xiaomi’s international.
Background of the Companies
Roy Choi’s Restaurant Empire ventured into the market as a single food truck in America. The company gained a competitive position in the market for its products and famous chefs in addition to their inspirational movie Chef (Frausto, 2014). As a result of this, the company gained popularity in Los Angeles and has expanded its restaurants in different regions.
On the other hand, Xiaomi is a Chinese smartphone company that is considering expanding its business functions internationally. However, the company is faced by a tough competitive market by other companies such as Samsung and Apple (Larson, 2014). This company has over time gained market share In China and is planning to expand its functions into other markets. In consideration of the state of these two companies, it is essential to determine their internationalization approaches.
Roy Choi’s Approach
It is in this case necessary to consider the fact that Roy Choi may make a choice of using localization as a business strategy. This can be explained by critically pointing out to the fact that Choi deals in nondurable products that are most sensitive to the differences in national habits and tastes, a factor that determines the need for the company to localize its business functions within its existing market (Frausto, 2014). Additionally, since food is a consumed product there are several variations that relate to the tastes, preferences and taboos of the consumers within different markets. Through a localized business approach, Choi is in a position to focus on adapting to the existing and local needs, preferences and tastes of the consumers.
Nondurable product preparation may need the inclusion of different ingredients that may tend to be challenging to obtain in different markets. Additionally, some food products may be unpopular within some markets such as beef in India, a factor that determines that strong cultural values may affect the nature of a business (Herbig, 1998). This therefore points out to the fact that localization would be the best approach for this company considering that Rou Choi enjoys a strong brand identity that has impacted its reputation in the market.
Additionally, some government regulations on the processing may not favor this ventures approach in choosing the standardization approach that would see its operations internationalized in different markets. It is therefore essential to also consider that in choosing an overall strategy for this company, the multidomestic strategy would effectively suit the functions of Choi. Through this approach, the company will be in a ...