CrossScott - MBA 673 - Chick-fil-A Memo

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University Of Charleston *

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210

Subject

Marketing

Date

Feb 20, 2024

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docx

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2

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1.) Does it make sense for this popular US Brand to begin venturing abroad? Yes. Chick-fil-A's decision to venture abroad is strategically sound for compelling reasons. Firstly, having achieved remarkable success in the US market and expanded domestically in recent years, the brand is on the verge of maximizing its potential within the country. Simultaneously pursuing international expansion offers a lucrative opportunity to tap into untapped markets, broaden its consumer base, and diversify revenue streams. Additionally, Chick-fil-A's renowned commitment to customer service, a key aspect of its brand identity, can be effectively harnessed in international markets. Piggybacking logistical challenges, market research, and cultural adaptations from previous fast-food chains, Chick-fil-A can intensify its focus on maintaining exceptional customer service. While international fast-food chains are commonplace, Chick-fil-A's unique market position, driven by strong brand recognition and elevated status, indicates that the demand for the brand is likely to exceed typical franchise expectations. This strategic move positions Chick-fil-A to meet a distinct market demand and further establish its global presence. 2.) What is it about the Chick-fil-A product and business model that may have caused the company to wait over 40 years before making a foreign move? Chick-fil-A's approach to fast food aligns with evolving societal norms towards healthier eating, offering a healthier alternative compared to typical fast-food chains. One of the cornerstones of their brand identity is their unwavering commitment to exceptional customer service, a characteristic that sets them apart in the industry. Implementing practices like mandatory
Sundays off for all employees and fostering face-to-face interactions with a customer-centric attitude is a complex feat that requires time to perfect and establish as a foundational element for franchisees to emulate. The 40-year domestic focus, I believe, was primarily driven by these two critical aspects. The shift towards prioritizing healthier eating habits gained widespread acceptance only about a decade ago. Moreover, the extensive time invested domestically was essential for Chick-fil-A to experience robust growth and establish a firm foundation. This foundation is imperative for maintaining all pillars of success and preserving their brand identity, especially before venturing into international markets where new challenges are likely to emerge. 3.) Did Chick-fil-A miss an opportunity by waiting to expand internationally, or did they do the right thing by focusing solely on the US market until just recently? The strategic decision to concentrate on the US market until recently is not a missed opportunity but rather a deliberate choice. Chick-fil-A's success in nurturing a dedicated customer base and upholding quality standards domestically underscores the brand's commitment to excellence and strong recognition. In my perspective, brand reputation often yields long-term benefits compared to the short-term gains of hastily entering the international market, and potentially encountering issues. Chick-fil-A's status as one of the most successful American fast-food chains, continually growing globally, supports this approach. While some might argue it was a missed opportunity, it appears that Chick-fil-A prioritized building a robust brand for long-term success over immediate global expansion. The focus on being the best rather than the biggest reflects a strategic move, waiting until all aspects within the brand, business, and organization are harmonized before venturing into international markets.
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