- April 27, 2014
- Posted by: essay
- Category: Term paper writing
The company can expand the market in 5 years. The company can open three outlets in Brazil and India in the first year of its operations. Three restaurants may be located in Delhi, Mumbai, and Kolkata, the largest cities of the country. Similarly, Hard Rock Café can open two hotels and one casino in Brazil in the course of the first year. The company can open a hotel and a casino in Rio de Janeiro and a hotel in Sao Paolo. In such a way, the company may start business and attract customers to its products and services (Hartman and Schafrick, 2004). The company can open three more restaurants in three core cities of India in the course of the second year. As for Brazil, the company can open a casino in Sao Paolo close to the hotel or expanding the hotel facilities opening a casino in the city. The third year will be the year of expansion of the company’s business in India as the company will open three more restaurants in Chennai, Bangalore, and Hyderabad, three large cities of India. In such a way, the company will expand its chain in India focusing on large cities mainly. As for Brazil, the company will open a hotel and a casino in the capital of the country, Brasilia. The fourth year will be the year of no new outlets to open in India and Brazil. The company will not open any new outlets in both countries. Hard Rock Café should focus on the improvement of its operations and to maximize the quality of services in the outlets opened in the course of three years. In such a way, the company can benefit from the improvement of the quality of services and from the development of the business and improvement of its operations (Benfari, 1999). Finally, on the five year, the company can introduce further changes and improvements in the opened outlets and prepare for the further business expansion in India and Brazil.
In fact, both India and Brazil are attractive for foreign investors. The political and economic environment of Brazil and India are favorable for the development of business in these countries. In addition, both countries are open for the fast introduction of new technologies and attempt to attract foreign direct investments. India is less concerned about environmental issues compared to Brazil.
A) Entry mode strategies
– Entering strategy
Hard Rock Café has a number of strengths which put the company in an advantageous position in the contemporary competitive environment. First of all, the company has well-qualified personnel. Today, the qualification of the personnel is a very important factor that may affect the competitive and marketing position of the company. Human resources affect consistently the performance of the company. Human resources provide customers of the company with services and the effectiveness of employees’ performance defines the customer satisfaction.
Furthermore, the brand image is also very important and Hard Rock Café has a renowned brand. The popularity of the brand is very important in the contemporary business environment because the brand comprises a part of the marketing assets of the company. Hard Rock Café can exploit the popularity of its brand to attract customers and to promote its products and services. However, the brand image may not work effectively in new markets, where Hard Rock Café is not well-known yet.