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Business Strategy: Cheesecake Factory, Ford, Blockbuster & D

Hello,

I have been studying various case studies and have some questions about businesses and their strategies. I was wondering if you could help me understand about some of these cases a little more.

1. Hypothetically, if the Cheesecake Factory did not have any international operations and only their 165 stateside locations, how would the Cheesecake Factory go international? What are the various options they have and ways they could become successful internationally?

2, Blockbuster was a chain of video rental physical stores, with more than 9,000 stores at its peak. It lost in the strategic competition to Netflix and in September, 2010 the chain filed for bankruptcy Dish Network bought the remaining 1,700 Blockbuster stores. In November 2013 Dish announced they are shutting the remaining 300 stores. Why did they pay $300 million for the firm and why are they closing it now?

3. Ford offers many different versions of its full-sized, F-150 truck, to meet the needs and price point of many different consumer segments. What is another product and firm that shows how a single product can be adapted to meet the needs of different market segments including issues of price, product features, positioning and perceived quality? How do these different segments have different consumer needs? Is this a strategy that should be more broadly used, or is it one that only applies in a few, limited circumstances?

Thank you so much!

Solution Preview

Thanks for requesting me. I like these questions, they are interesting. Please let me know if you have any questions that I may clarify. Good luck!

1. Hypothetically, if the Cheesecake Factory did not have any international operations and only their 165 stateside locations, how would the Cheesecake Factory go international? What are the various options they have and ways they could become successful internationally?

International expansion can be executed in different ways. The Cheesecake Factory could expand by partnering with an established restaurant chain, by acquiring an existing operator, or through sequential market entry. Outback Steakhouse expanded by starting with new locations close to the continental U.S., and then expanding to Asia and Britain, insisting upon local ownership. Cheesecake Factory must decide if it wants to keep its existing name and format as it expands or try a format that might be better suited (more easily translated) into local culture. The benefits of partnering with an existing operator are the familiarity with local culture as well as the ability to use an existing supply chain. In this manner the chain could use its existing competencies (efficient provider of quality food, American brand name) but gain more familiarity with local conditions faster. The Cheesecake Factory must consider ...

Solution Summary

This detailed solution looks at how Cheesecake could expand internationally, why Dish Network bought Blockbuster stores and then closed them, and if companies other than Ford use the same brand name with variations to target different customers.

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