Marketing Case Studies Paper on Expanding the Company’s Businesses to USA and Europe


TO: BTHR’s Management Team   



SUBJECT: Expanding the company’s businesses to USA and Europe

Question 5

Some of the possible challenges the company is likely to experience in USA, Middle East and Europe relate to cultural practices, the cost of doing business and labor related issues. In order to deal with these problems, the company should approach cultural practices in a different perspective. It should also re-evaluate its strategies to make them less expensive and understand the labor relations in each region.  

Brief overview

After successfully launching its businesses in Asia, BTHR Company is now considering expanding its businesses to other parts of the world. Although it has successfully done this in South America, North America and Europe are proving difficult for the company.    

Central problem    

From a broad perspective, the company is facing the following two challenges.

  1. The high cost of doing business in USA and Europe.
  2. The challenge of expanding in major cities given that they are also expensive.  

This should not discourage the company from venturing into the two regions, but it should help the management team to prepare in advance.

Possible options 

In order to address the possible challenges that the team might face in the regions in question, the team has the following three options to consider.

  1. The first option would be to change the strategies the team has been utilizing in Asia (Lovelock and Wirtz 482). This option implies that the team should consider developing new strategies and stop utilizing the old strategies altogether.
  2. The second option would be to continue with the strategies the team has been utilizing in Asia and in other regions. With regard to this option, the management team should proceed with the current strategies and probably address the high cost of doing business from another perspective.
  3. The third option would be to stop venturing into the two regions. In contrast to the other two options, this option discourages the team from expanding business into the two regions.

Strengths and weaknesses of the possible options      

A keen look at the merits and demerits of the three options indicates that the first option might help the company to overcome the possible cost challenges probably by minimizing the cost of doing business in the two regions. This implies that the team has the option of developing cost effective strategies that can be applied in the two regions. In contrast to this practice, the team might incur an extra cost developing these strategies and end up not utilizing them. At the same time, the strategies may as well fail to be efficient in the two regions.

With regard to the second option, the team will not have to develop new strategies; thus, unnecessary cost of developing new strategies will not be incurred. Nevertheless, the team might lose money for underrating the inefficiencies of the strategies it has been utilizing in Asia. Conversely, the third option will save the company money and the hustle of developing new strategies, but it will deny the company a chance to do business in the two regions.

Recommended course of action

In relation to the above analysis, the management team should consider adopting the first option because of the following reasons.  

  1. It gives the team an opportunity to evaluate the most viable strategies applicable in USA and Europe.
  2. It also gives the team an opportunity of evaluating why its current practices might not be applicable in the two regions thereby give the company a comparative advantage in the future.

Although the practice might look bothersome and probably tiresome, the team will end up developing efficient strategies that can enable it to compete effectively with existing businesses. It is outright that the company will incur an extra cost evaluating the possible strategies if it adopts the first option, but from a strategic viewpoint it is worth doing this than losing money for underrating this practice. Considering past records, it would be advisable for the management team to strive towards retaining the company’s comparative advantage in the two regions rather than risk losing it for overlooking the obvious fact that each region has its unique attributes (Lovelock and Wirtz 483). In relation to this fact, the management team should evaluate the most viable strategies in the two regions and apply them rather than stick to its current strategies that might not be applicable in the two regions.

Marketing metrics

Because the management team should consider reviewing its current strategies before starting doing business in Europe and USA, the team should develop the following marketing metrics.

  1. First, the team should develop an exhaustive business plan that outlines the way the company intends to reach its potential customers. This plan should indicate the probable methods the company intends to utilize to advance its CSR policies, to reach its customers and maintain its brand name among other things.
  2. Second, the team should develop a financial budget that indicates the amount of money the company is willing to spend on labor and opening up new hotels in the two regions.

If the company will be able to plan effectively before venturing into the two regions, then it will minimize the cost of doing business in the regions. 

Works Cited

Lovelock, Christopher, and Wirtz Jochen. Services marketing: People, technology, strategy. Upper Saddle River, NJ: Pearson, 2011.