Ruth's Chris Steak House |
Case Analysis |
Ruth's Chris Steak House is the largest upscale steak house company in the world, with over 130 restaurant locations around the globe. Founded in New Orleans, Louisiana USA by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."
In regards to the market variables and their order of importance, I would rank them accordingly:
1. Legal/Ease of import of U.S. beef
2. Population/high urbanization rates
3. Beef eaters
4. High disposable income
5. Eating out habits
6. Affinity for U.S. brands
However, some variables are given higher ...view middle of the document...
Limited per capita GDP could also provide some challenges because the menu items are expensive and the company does not want to lower prices and decrease its overall worth.
Population/urbanization and customer dining habits should be last on the list. A country can have a relatively small population, but also have high living standards and consume large amounts of meat. In this scenario, Ruth’s Chris would receive a return on investment despite the population rate. Lastly, customer dining habits can be created and/or assumed. For instance, if a country has great per capita beef consumption, high GDP, and significant urbanization, it can be assumed that most customers dine out.
In addition, the other variables that are not in place, but should be added are: competition and ease of doing business. For Ruth’s Chris, Porter’s Five Forces would provide additional criteria that would aid in potential market assessment. Before proceeding with development, Hannah should address competition and more importantly, substitutes. Ruth’s Chris should analyze the other types of meat that consumers choose, as well as other popular dining options in the region. For instance, more customers may prefer quick service when they dine out. By evaluating its...