CinnZeo Strategic Expansion Plan Research Paper

CinnZeo Strategic Expansion Plan - Research Paper Example Accordingly a business venture may decide to pull out if its initial experience is not very positive or even negative. Alternatively it may decide to re-enter at another time, depending on the changes in the infrastructure and other conditions, such as the earning and spending capacity, receptiveness of the population for its products and services, and changes in cultural and other demographics that make for more favorable conditions. CinnZeo has entered Saudi Arabia in a modest way and in fact appears to have a planned strategy to cover most of the Middle Eastern region, seeing that it has a presence in Jordan, Syria, Egypt, Dammam, Dhahran, Yanbu and a host of other locations in the Gulf. It is now concentrating on locations within Saudi Arabia and Ha’il city in particular. The remainder of this paper will be geared towards determining whether it would be advisable to expand further in Saudi Arabia, using Ha’il City as an example. II. Demographics The demographics and psychographics of a native population play a very important part in whether a company or a business product or service is welcomed and tolerated in a region or a country. For example, it would be foolhardy to open a liquor store or one that sold pork meat in S. Arabia, or indeed anywhere in the Muslim world, as these products are frowned upon by the followers of Islam. The culture of a region also plays a very important part in the receptiveness or otherwise of a product or service. For example, Saudi women are not allowed to travel unless they are chaperoned by a male, or even to drive a car for that matter. It would thus make more sense for CinnZeo to cater to family style outlets, where there are seating arrangements for the whole family and they can sit in and enjoy to their heart’s delight. An alternative suggestion would be to create roadside cafe style locations where families can sit out, but this would be feasible only in the late evenings and cool of the night- the day heat is too stifling for it to be considered in the daytime (About.com, 1992). As far as the age factor is considered, there are no barriers that cannot be broken with good and culturally sensible advertising. Showing the whole Arab family enjoying mouthwateringCinnZeo creations in the fuzzy warmth of a CinnZeo outlet would give a very positive impression. This can be shot in different backgrounds at various times of the day-in the early morning, at midday, or the late evenings when other people are shown walking or relaxing outside. The CinnZeo logo should be associated with quality and comfort, so that the public is intrigued enough to try it out not only once but more than once. A group of college males, or even females enjoying a late afternoon brunch at a CinnZeo cafe while their driver waits patiently is sure to pique interest among the Arab youth population. Modern Saudi Arabia is full of locals turned into foreign educated graduates who eventually become more used to We stern style cultures abroad than their own. They are young and want to enjoy and experiment and get away once in a while. CinnZeo outlets would provide them with a good opportunity. Added to this let us not forget the worker migrants of Saudi Arabia that come from a host of other nations, among them Mexico, Canada and the USA where CinnZeo would already be known and appreciated. This population can therefore form a staple base for CinnZeo products with the local population hopefully not far behind. As regards the locations and ease of access in Ha’il City, this would depend on the already available infrastructure. Locating the CinnZeo flagship outlet in or near