November 11, 2013
Case Studies (2)
1. In the United States, about two-thirds of Starbucks outlets are company owned; the remaining one-third are operated by licensees. Outside the United States, the proportions are reversed: about two-thirds are run by licensees or partnerships in which Starbucks has equity stakes. What is the explanation for the two different market expansion strategies? When conducting business abroad, multi-national companies can use different market expansion strategies. The strategy of licensing is a contractual agreement where company A (the licensor) makes a legally protected asset available to company B (the licensee) in exchange for some form of compensation. Companies typically …show more content…
Honda’s Fit and Toyota’s Scion iQ are the two vehicles that could be directly compared to the Smart Car, yet the Smart Car still remains the most affordable. The U.S. launch was not too late--Smart should position itself as a niche market and fully market themselves to people who would be interested. To maximize success, Smart should seek partnerships and endorsements from popular eco-friendly companies that already have an array of brand loyal customers. Cars like the Smart Car and the scion iQ will never be extremely successful because overall, Americans love big cars. However, there will always be a group of people interested in the eco-friendly alternative.
4. As noted in the case, Penske Automotive Group is no longer the distributor for Smart USA. How will this affect Smart’s fortunes in the United States? Penske Automotive Group discontinued their relationship for Smart USA due to stagnant sales. This has neither negatively, nor positively affected Smart’s fortunes--as sales have neither increased nor decreased drastically since the split. The Smart Car is a commodity in which the economies current state determines the amount of interest.
5. Evaluate Smart USA’s social media strategy. What additional channels or tactics would you recommend? Smart USA uses social media to relay their brand promise--to produce fuel-efficient, eco-friendly