Ruth Chris’s Bakwas
What would be your choice for the top five opportunities? The top 10? What equation did you use to reach that conclusion and why? The top five opportunities for Ruth’s Chris steak house would be Bahamas, France, Germany, Spain, and Brazil. There are several factors for selecting these countries based on market development model and they are – Bahamas – It is an ideal tourist destination which has major consumption of beef which is 123. kg per capita and has tremendous growth rate of 13. 56% as of 1998-2002. The Bahamian dollar is also on par with US dollar and has an urbanization rate of 89%. France – French people have a fascination for beef and the consumption rate is over 100. Being densely populated and having an urbanization rate of 76% makes France an ideal location for business expansion. France is also known for wine which is a good combination with steak. France is also a country which favours tourism giving an advantage for company expansion.
Germany – Germany is ranked fourth in per capita consumption of beer which pairs well with steaks and the country has over 80 per capita beef consumption rate. Germany also had a good GDP of over $30,000 with a good urbanization rate of 88%. Brazil – Sao Paulo and Rio Di Janeiro are few of the major cities in Brazil where expansion would be ideal considering their high population and high beef consumption rate. Brazil is also a tourist destination having an urbanization rate of over 80%.
Spain – Spain is a perfect country for expansion because of its remarkable beef consumption rate, urbanization rate, and a GDP of $25,500. Spain is also a favourite tourist spot for people from around the globe. Top ten – Bahamas, France, Germany, Brazil, Spain, Argentina, Ireland, Italy, Netherlands, and Israel. Equation: The above mentioned result was derived from a careful study of the relation between per capita beef consumption, population, urbanization and per capita GDP of each country which could serve as a possible new market for Ruth’s Chris steak house.
We also took into consideration the relationship between United States of American and the countries and also how readily the product will be accepted by the people. These countries provide immense opportunities for expansion considering their tremendous amount of beef consumption. We have used the model of Market Development as a key factor for entering into these markets with the same product.