The first business you will look at is Roy Chois restaurant

The first business you will look at is Roy Choi’s restaurant empire. Choi started out with a single food truck in Los Angeles, but soon gained celebrity status as one of the country’s most famous chefs and the inspiration for the recent movie Chef. Food trucks soon became huge craze in Los Angeles, and Choi has since gone on to open up multiple additional restaurants and even has plans for a fast food chain. His fame and multi-ethnic cuisine gives him large potential if he ever decides to take his business overseas.

Question:

What kind of strategy would you recommend if Roy Choi decided to expand his food truck or restaurant business internationally? Would you recommend product standardization or localization? Which overall strategy would you recommend – transnational, multi-domestic, or global? Explain your reasoning and apply the concepts from Jeyarathmm, M. (2008), Steers and Nardon (2005), and Herbig (1998).

Solution

Roy Choi can adopt either of below strategy based on present situation to expand his Food truck or restaurant business Internationally :

Competitive advantage Strategy : Competitive strategies are concerned with doing things better than rivals. To be competitive a Ry Choi shouldn\'t just copy the ideas of rivals. he should seek to out compete other firm in market. There are two main ways of being competitive

1. By selling goods at lower prices than Others. This is possible when a firm is the market leader and benefits from economies of scale.

2. By differentiating his product from those of others- which enables you to charge a higher price if desired.

Economies of scale - The advantages that Roy Choi’s restaurant have from producing large volumes of output enabling him to spread their costs over more units of output.

Differentiation - Making a product different from others offerings e.g. through packaging and labelling, customer care, additional extra features, etc.

Product Strategy: Industry competition requires organisation to constantly present new and better products and services, if Roy Choi\'s product meets good quality and service as compared to other firm then thus strategy may prove backbone for expansion of his business

Pricing Strategy : Pricing strategy does not always mean employing low price tactics to gain industry dominance, but that is the obvious route. Some organusation maintain high prices as a tactic, playing on our psychological tendencies to equate high quality with high prices. Other companies use low-price tactics presenting rebates, special sales and deep discounting.

Marketing Strategy : Marketing strategy seeks to target specific consumers with messages that are most likely to draw their attention. It involves seasonal advertising and special promotions as tactics to achieve market dominance.

Roy Choi\'s product standardization or localization :

Standardization and localization are two of the most important processes of global business. Even though there is no connection between the two processes, as one happens independently of the other, they both became a crucial part of business when Organisation reached a global scale like Roy Choi\'s. This is because companies now target diverse audiences with their own languages and standards of quality

Standardization in Case of Roi Choi\'s restaurant/Food truck Business :

Product Standardization is the process of developing technical standards, which apply in the same manner to all manufacturers and consumers. For example, Roi Choi could produce same quality and quantity of foods accross the country for final customer

Product Localization : Localization is the process of making a product more accessible to different audiences. Examples of localization include the translation of the Roi Choi\'s cooking instructions or the ingredients of a food product or the dubbing or subtitling a foreign-language movie or series.

Since Roi Choi recently entered (or planning to Enter) in new market/area, he should focus on Product Localization,Since the food sold is a consumer product, and there are variations in consumer\'s taste preferences in different countries, a localized business strategy would allow the business to focus on adapting to the local taste preferences. Certain ingredients may be difficult to obtain in some countries.

transnational, multi-domestic, or global Strategy for Roi Choi Food Truck Business expansion :

Multidomestic Strartegy :if Roi Choi follows a multidomestic strategy, this will fits its products to each country in which it does business. The product features are tailored to the local domestic environment, taking into account different food preferences, religious customs and other characteristics that define the locality. Companies choose to follow this strategy because their products will be better received by local customers, rather than seen as something unusual that is produced by a foreign company.

Transnational Startegy : In Transnational Strategy of expansion Roi choi can also sell their products in multiple countries across the globe. This strategy differs, however, in the way the product is marketed in each country. A transnational product keeps its same characteristics, regardless of the country in which it is sold.

Global strategy : If Roi Choi plans to enter to global market, he should market his  products through the use of the same coordinated image/brand in all markets. Generally one corporate office that is responsible for global strategy. Emphasis on volume, cost management and efficiency.

Since Roi Choi deversifying his market segment/ Entering into Internation market, he should consider the Global Strategy since he would be able to gain much profit accross the globe due to his good celebrity status as one of the country’s most famous chefs and the inspiration for the recent movie Chef