– Value Chain (Internal)
Hard Rock Café should develop the value chain. The company develops the value chain and, while entering the new market, Hard Rock Café should develop its value chain in the new market. The company develops the value chain throughout new markets (Blanchard & Bowles, 1993). Hard Rock Café develops its business internationally. The company has its own value chain. Hard Rock Café has the code of ethics which regulates relationships between employees working in the company. The company has its set of values, which employees respect and appreciate. Hard Rock Café’s system of values promotes equal relationships within the company.
– Resource Base (Internal)
The resource base of the company is crucial for the successful business development of Hard Rock Café. The company needs the resource base to develop its business internationally (Gitlow, 1997). In fact, the resource base of the company is sufficient for the international business development. Hard Rock Café can use its human resources to transfer to the new outlet and to train local employees. The company can also use its financial and material resources to develop its chains in the target market.
– Country Market and Industry opportunities
The country market and industry opportunities are also extremely important for Hard Rock Café and its international business development. In fact, the company should enter markets which have a potential for growth. Hard Rock Café will face considerable difficulties in the market, where the growth has stopped and the competition is tight. The company can benefit from entering markets with the low level of the competition.
– Five Force Model (external)
The analysis of five force model can help Hard Rock Café to identify the best target market. In this regard, the buyer power can affect the success of Hard Rock Café entering new markets. The high buyer power is likely to facilitate entering the new market because buyers can use services offered by Hard Rock Café, while customers with the low buying power are likely to save their money and refuse from using services of Hard Rock Café.
The supplier power is also important in terms of business development of the company in a new country. Hard Rock Café relies heavily on local suppliers, especially in regard to its restaurant and hotel business. Reliable local suppliers can help the company to save costs and to provide consumers with products and services of the high quality.
The company will also have to overcome barriers to entry. Barriers to entry are high in markets, where there are a few strong companies operating in the industry. They can raise substantially the barriers to entry. In contrast, markets, where the competition is tight but the number of companies operating in the market is high, barriers to entry are lower. Therefore, Hard Rock Café should chose the target market, where barriers to entry are low, while prospects of the market growth are high.
In such a situation, the company should come prepared to rivalry. In fact, the company should assess adequately its potential and capability to maintain competitive struggle. Therefore, Hard Rock Café should choose the market where it can afford the competition with local rivals.
Finally, the company should take into consideration the threat of substitutes. Substitutes can replace Hard Rock Café from the market. Therefore, the company should study the presence of substitutes and their impact on the target industry, including restaurant, hotel and casino industries.