Competing in International Markets

            The abroad extension has been the main expansion plan for the café corporations from Yurn to McDonald’s and the Domino’s.  Chipotle is at a halt in its untimely phases of expansion in the outer regions of U.S and its progressing gradually.  The corporation has 12 global eating places and has maintained their plans of opening extra restaurants in years to come including some in Germany.  The American style of the Mexican food seems to have a little attraction in the United Kingdom than the log burgers and the pizza do.  Chipotle has not been so much successful as it is known that most of those living in London are not familiar with its brands.  If I was the CEO of the company I would much focus on the increase of the marketing process (Wylie, 2009).

             My evaluation has shown that only one percent of the Londoners know about the brand without prompting compared to the 16 percent of those who know about Manger and 23 percent of those who are aware of the McDonald’s brands. London will become a developing market until the awareness of Chipotle brands are raised there.  Another challenging issue is the pricing.  As for America, pricing is mainly an issue for many of the Londoners.  Many dinners have had a psychological obstacle against paying more then $5 for the lunch items and this compared to the fact that Chipotle food is highly priced strategy and needs to be changed so as to attract more customers (Wylie, 2009). 

            Best Buy is the top most suppliers of machinery products, services and resolutions. The company gives professional services at fare prices to the customers, the small business owners and the scholars who visit their stores and they are currently having operations in the U.S and Canada. As for the staff workers, the employees’ knowledge and passion are recommended through payments, benefits and other rewards that are among the best in the industry such as the industry leading employee discounts on the greatest products (Hitt, Hoskisson & Ireland, 2013).  

            Many of the companies that compete in the international markets are at the aim of gaining costs and advantages.  If the company increases its sales levels by entering in a new country, it gains economies of the scales that lower its production costs.  Growing internationally has some challenges for dealing with the suppliers.  The development of the international expansion leads many businesses buy and have many suppliers in huge numbers.  This gives the company a stronger influence when negotiating prices with its suppliers (Hitt, Hoskisson & Ireland, 2013).    

Student 1: SS: Under Armour

I agree with Amour’s argument because Chipotle is preparing to commence a new beckon of awareness with their burrito product in an established market.  The restaurant stands to be different from the other competitors because it does its business differently in terms of food, restaurant and advertising.  It focuses on its quality on the ingredients which makes new interests and culture to how to have fast foods through many promotional events.

Student 2:JS: Chick-Fil-A

I agree with the remarks of Chick-Fil-A due to the fact that most of the entrepreneurs such as Chipotle practice the building and maintaining the local customer as it is their main road to success. Like Chipotle, when other companies achieve this goal, they feel comfortable and are ready to expand internationally.  So that a business may be converted from domestic to international, some factors must be considered which cannot affect the local company.     

 

 

 

References

  Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2013). Strategic management: Competitiveness & globalization : cases. Mason, OH: South-Western, Cengage Learning.

Wylie, K. (2009). Marketing Analysis Chipotle Mexican Restaurant and Applebee's Restaurant. München: GRIN Verlag GmbH.