International Expansion Question 1: The decision criteria by Ruth’s Chris to expand internationally include product development, diversification, penetration, and market development. The product development phase targets introduction of new types of restaurants in current markets. Ruth’s Chris did not put considerable importance on this approach. Since the company had established 92 fine dining steak establishments, the firm did not see a major need. It saw not value in diversifying in new restaurant types. In the diversification approach, the strategy was aimed at providing new types of restaurants in different markets. Ruth’s Chris did not consider this approach. Out of the four markets that the company operated internationally, the company noted that the current dining experience it offers its customers would be appropriate for new markets without risking confusion or altering the brand. In terms of penetration, Ruth’s Chris considered the option of adding more restaurants in the same market. Plans for implementing this strategy were in progress, particularly in the case of new restaurants present in Canada. Nonetheless, the major difficulty affecting this approach is that the restaurants would not be able to offer universal serves compared to fast food establishments, such as McDonalds. Furthermore, it would not be possible for even …show more content…
By introducing new types of restaurants in different markets, the company would be forced to make major investments in the establishment of stores. In addition, the new stores would be different from the mother company, confusing the customers about the operations of the company. For example, those customers who are loyal to the brand would perceive the different establishments differently, leading to loss of customers. As a result, the company would end up making losses, bringing down the overall competitiveness of the company in the global