Essay on Managing in Global Markets

1. Strategic analysis for Hard Rock Caf锦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦..”¦”¦”¦”¦..”¦”¦3

1.1.Mission, organizational values, business system, market positioning, basic appeal, global ambition and global positioning of Hard Rock Caf锦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦..”¦”¦”¦”¦”¦”¦”¦”¦3

1.2.Analysis and evaluation of relevant external and internal factors”¦”¦”¦”¦”¦…”¦7

1.2.1.     Internal analysis ”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦..”¦”¦”¦”¦..”¦”¦”¦”¦7

1.2.2.     External analysis for the international markets ”¦”¦”¦”¦”¦”¦”¦..”¦”¦”¦”¦

1.3. The selection of appropriate country markets for Hard Rock Café

1. Brazil’s and New Zealand’s market entry strategies ”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦”¦..9

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1. 1.     Strategic analysis for Hard Rock Café

Hard Rock Café currently has about 174 venues in 53 countries including 138 cafes and 16 Hotels/Casinos with the headquarters in Orlando, Florida. It has a diverse business portfolio which includes restaurants, casinos, hotels, theme parks, music festival offering, and the online souvenir shop. The information placed on the company’s website states: “beginning with an Eric Clapton guitar, Hard Rock owns the world’s greatest collection of music memorabilia, which is displayed at its locations around the globe. Hard Rock is also known for its collectible fashion and music-related merchandise, Hard Rock Live performance venues and an award-winning website.” (HRC, Web)

The company operates in the most lucrative industries in the world amounting to billions of dollars in revenue: restaurant, hospitality and the entertainment industries. The competition in the restaurant, hospitality and the entertainment industries grows intensely and therefore the development of a global strategic plan for Hard Rock Café for the period 2013-2018 is of the major importance for the company’s further development. In addition, it needs to be pointed out that the competitive advantage may be obtained through the launch of the different businesses in other parts of the world that may have escaped Hard Rock Café’s management’s attention before.

1.1.  Mission, organizational values, business system, market positioning, basic appeal, global ambition and global positioning of Hard Rock Café

In accordance with the official mission statement of Hard Rock Café, this company aims ”˜to spread the spirit of Rock n Roll by delivering an exceptional entertainment and dining experience.’  (HRC) The major values therefore include the commitment ”˜to being an important, contributing member of our community and offering the Hard Rock family a fun, healthy, and nurturing work environment while ensuring our long-term success.’ (HRC, Web)

Clearly, Hard Rock Café may be defined as the customer centric company that aims to create an environment where people can get a new experience.  By giving customers more of what they want, by delivering exceptional entertainment and dining experience to their customers, Hard Rock Café continues to grow and evolve as an international enterprise.

Sherchan (2009, Web) claims that Hard Rock uses food as the medium that allows to sell the experience. Hard Rock Café actually is valued for delivering exceptional entertainment and dining experience.

Another important detail about the company’s values found in the mission statement of Hard Rock Café is that the company really cares about its employees, referring to them as a family. The company creates the environment of fun where the employees look forward to come to work. This employer values its people and understands that greatest results may be achieved only when people enjoy their work. Taking into account the results of the network’s global expansion, a conclusion could be made this company is successful in turning their mission into reality.

Hard Rock Café is definitely an international brand; it is a successful global enterprise. It’s global ambition to expand the company’s business activities into various countries. What are the major reasons of its success? First of all it’s the company’s vision it’s an entertainment, not a trade, and the company sells not just the product but rather the experience. Hard Rock Café restaurants, casinos, hotels and theme parks may be described as the places where customers can get a unique “experience”. For instance, café’s visitors will get not only the food by the dining event including Hard Rock Café’s unique visual and sound experience that can’t be found anywhere else on the planet. So the global positioning of this network is an innovative one, it is “places that guarantee unique experience”.  It’s quite interesting that merchandise of Hard Rock Cafés provides about half of an average network’s cafe’s sales. It means that the brand is extremely popular, and actually is one of the most recognized entertainment companies of the world.  It needs to be mentioned that because of the significant role of merchandise in the overall sales, the supply chain of the Hard Rock Café should be paid close attention of the management to guarantee these profits.

The company’s internationalization strategy involves the use of its domestic model globally and also the use of franchising operations when the risks are too high. Besides these strategic elements, it has to be indicated that the domestic model includes the dynamic and unique character of each restaurant, including the attentive approach to each guest; there is also a merchandised shop in each cafe and it’s the core concept of the Hard Rock Café’s internationalization strategy. Additionally company applies e-commerce strategy to help the global branding extension.

Its strategic business approach may be defined as differentiation because its system incorporates differentiating features and the makes the guests of the Hard Rock Café to prefer its product over the products of the company’s rivals. As for the rivals, few could be named: cheaper substitutes such as McDonald’s; companies with the similar concept for instance Rainforest Café, Planet Hollywood International or HOB Entertainment.