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Managing In golbal market - Essay Example

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Brands subsidiary, Taco Bell, is seeking growth by entering new international markets. Historically, Taco Bell has found moderate success in some new markets whilst also being forced to exit certain markets for various situations and conditions. Taco Bell currently only…
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Managing In golbal market
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This internationalisation strategy report identifies two viable markets for entry, Kuwait and Brazil. In Kuwait, consumers are experiencing increased disposable income levels and consumer behaviour factors represent favourable conditions for consumer acceptance of Taco Bell and its diverse product lines. Brazil maintains stable economic conditions and also encouraging consumer behaviour which can enhance Taco Bell’s ability to improve its internationally-based revenue stream. With the chain’s intention of opening one new store, internationally, every few days (Wong 2014), Brazil and Kuwait can ensure this goal is achieved and market conditions in these two countries represent stability upon market entry.

This strategy report utilises many strategic models to analyse market conditions in Brazil and Kuwait as viable markets for the chain’s growth. The report’s deliverables include a full understanding of the political, economic and social factors of both markets, the competitive environment, and specific strategic initiatives that must be established to make market entry a success and ensure profit longevity. The threats and risks in both markets are also identified that might contribute to challenges upon market entry with appropriate recommendations for overcoming any barriers to entering both markets.

The Kuwaiti government recognises the opportunities for attracting foreign investment. Recently, Kuwait has established a Free Trade Zone in the city of Shuwaikh, a region closely adjacent to the Iran border, a region sustaining an important international airport, and sustaining a shipping port that facilitates recurring movement of goods via water transport systems. This Free Trade Zone provides foreign companies with complete tax exemption on earnings for 10 years upon market entry (Singh 2010).

Hence, the endeavours of the Kuwaiti government to entice foreign investment provide Taco

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