Question

I am doing some reserch on international marketing, I picked buffalo wild wings as my company. (at least 450 words).

Bufflao wild wings recently went golbally In mexico and more contires. Here is a website for it

https://www.export.gov/

I need basic informations on strenths and weakness for their internatiol marketing or going globally.

b.       Strengths of the Company/Products for International Markets

c.       Weaknesses of the Company/Products for the International Markets

Answer 1

Buffalo Wild Wings is a prominent American casual dining restaurant. Serving American food enthusiasts industriously for over three decades now, this franchise became a hot favourite shortly after starting operation. Soaring growth rates, profit margins and popularity made the chain consider expanding globally and thus began its first step into the international market through Canada in 2010. Since then there was no looking back and many stores opened in various other countries like Mexico, Dubai, etc.   

Considering Buffalo’s global popularity growth and expansion, let us first browse through some factors that worked to its strengths in international marketing.

• Firstly, the fame of spicy Buffalo-style chicken wings through customer reviews and word of mouth, made its mammoth task of attracting customers relatively easy. People of Canada had already heard about the franchise and Buffalo didn’t have to make much effort to pull its first set of customers. As the first few customers started rolling in, their demands snowballed with time. It made sense to start with a country neighbouring to USA for pragmatic reasons. Before expanding into farther countries, Canada served as the patch test for a new cosmetic. With more than satisfactory results from Canada’s store, Buffalo Wild Wings decided to increases stores in other countries.
• Secondly, what could be better than expanding one’s business by utilizing capital and manpower of other countries? The inbuilt risks of expansion were reduced to a large extent. It was now the responsibility of outlet owners or investors to invest capital and undertake risks and overhead expenses. Expansion allows the brand to operate efficiently by utilizing economies of scale which otherwise wouldn’t have been possible.
• Thirdly, when one was investing in taking up the responsibility of a Buffalo Wild Wings outlet in another city, the responsibility of maximizing sales and profit also fell on him. The larger profits each outlet could make, the more they could retain after paying their share of brand fee to the Buffalo name. Thus, efficient operation became the interest of every outlet's investor instead of that one original Buffalo outlet's.
• Fourthly, high expenses on advertising the brand name are now shared by the outlets. Each outlet contributes a fixed percentage towards raising advertisement funds. Bigger and better campaigning is done as the budget of advertising increases through the contribution of several outlets as opposed to one outlet earlier.
• Lastly, expanding into a new and international market has some hidden advantages which are unfamiliar to the regular business model in originating cities. These advantages can take many forms, for example, a new product like buffalo style wings might be very well accepted in regions which never had tasted something like this before. Also, some countries offering favourable regulations might also result in the franchise paying lower taxes. These dormant potentials can be realized only after operation starts in other countries.

However, along with strengths came various challenges for Buffalo Wild Wings as it grew from a small outlet in to a global chain.

• To begin with, it was taking a huge financial risk because unfavourable exchange rates could be very damaging. Meals that are more affordable in America might be very costly in developing countries, which might reduce demand altogether.
• Then there is loss of ownership. Trade secrets have to be given away for product development which might result in the birth of competitors if divulged to wrong partners. Also, the franchisor’s return in the form of a fee is very limited when compared to such a huge risk of losing its uniqueness.
• Thirdly, cultural and political differences might affect the sales of Buffalo adversely. A meal that is a hot favourite in America might not be well received in Dubai because people’s tastes and preferences vary with change in composition of population. Also, regulations in the newly expanded countries might not always work in favour of the franchise.
• Lastly, although the quality of products and services are aimed to be standardized, there will be inevitable operational and behavioural differences that creep into each country's outlets and set each outlet’s service apart from the other. Thus, though inherently serving the same meals, customers might end up concluding “outlet A is not as good as outlet B”. Worse still, if Buffalo Wild Wings is operating beside a KFC, then unsatisfactory services from a particular Buffalo outlet will push its customers to the neighbouring KFC with no fault of the owners of Buffalo Wild Wings.

In conclusion, these were just a few of the strengths and weaknesses that could be identified with international marketing. However, one needs to weigh out the pros and cons and build a good strategic planning process after doing thorough survey on the areas on intended expansion. In the era of globalization, there is no reason to shy away from international marketing. One can always opt out of it if the venture is not profitable. However one must have enough business acumen to withdraw the brands out of unfavourable markets at the right time so as to not be driven to a point of total shutdown.