by Alyssa Giacobbe, Hemispheres-United Airlines, October, 2009, pages 51—52.
Abstract
Back in 2003, two twenty-something New Yorkers—Michael Kirban and Ira Liran discovered what will make them millionaires while drinking in a bar with two beautiful Brazilian women. They wanted to know what the women missed most about their homeland…”Agua de coco,” the women replied; the water inside young coconuts, which Brazilians drink practically from birth and revere as the most delicious and nutritious drink in the world.1
At the time, the United States was in the throes of specialty-beverage boom, with customers clamoring for “functional drinks” with ambitious names… and lofty promises of healthier, brainier, sexier lives. Looking into coconut water, Kirban and Liran learned it would fit in the category quite nicely: an 11-ounce serving…has more potassium than two bananas and 15 times more electrolytes than the average sports drink. As an added bonus, it happens to be a good hangover fix.
Vita Coco decided to bring coconut water to the US with a splash: shrew marketing was necessary in order to educate the virginal consumers. It deployed splashy vans decorated with beach scenes and no fewer than 2,000 real green coconuts. They prowl the streets of New York, Boston, Miami and Los Angeles, blaring reggae music and braking for dehydrated passerby. The company targets the younger, work-hard, play-hard types, who might enjoy what its website calls a “hydration vacation” where “bikinis are optional.”1
-----------------------------------------------------------------------------------
Perspective on International Entrepreneurship Aspects of “On the Water Front: How Did Coconut Water Become the Trendy New Miracle Beverage?” by Alyssa Giacobbe, Hemispheres-United Airlines, October, 2009, pages 51—52.
This article presents the all-too-familiar story of young entrepreneurial spirits (Kirban and Liran) who were restless and curious enough to not only stumble across an entrepreneurial opportunity, but most importantly, recognize it and capitalize on it. Their highly-successful $20-million coconut enterprise soon attracted followers (Zico, O.N.E.) who were eager to capitalize on the success of the two visionaries. The three competitors have masterfully segmented the market and so far exist in peace.
The story of the two New Yorkers has all the beautiful elements of a classic American entrepreneurial fairy-tale: to begin with thy are childhood friends, one of them already practicing the entrepreneurial gene by having started a software company, the other being a marketer who back in 2003 was probably rebranding himself while looking for a new job. And as it often happens in these industry “urban legends”, their inspiration for manufacturing and introducing a somewhat risky consumer product came unexpectedly and in the course of a casual social interaction (flirting to be precise.) This helps to discredit once again the popular myth that most entrepreneurs belong to the circles of crazy isolated scientists; on the opposite, having highly developed socialization skills is one of the most critical elements fro a successful entrepreneur.
Although coconut water under the “Vita Coco” brand is still sold only within the geographic frame of the United States, there is a definitely an international element to this entrepreneurial chronicle. The inspiration for the concept came from the notoriously beautiful and fit Brazilian women. Widely popular south of the equator, yet virtually unknown in the US, with only 60 calories in a 11-ounce serving and unprecedented rehydration quality, back in 2003 coconut water was the yet undiscovered frontier for the US “healthy living” fascination. Today, in big part thanks to the passion and determination of Michael Kirban and Ira Liran, coconut water has successfully entered the psyche of the US health-conscious consumer. “Coconut Water is our fastest-growing beverage segment,” says a rep for Whole Foods. “We’ve seen sales increases in the triple digits.”1
-------------------------------------------------------------------------------
1 Giacobbe, Alyssa, On the Water Front: How Did Coconut Water Become the Trendy New Miracle Beverage, Hemispheres-United Airlines, October, 2009, pages 51—52.
Wednesday, December 9, 2009
Sunday, November 15, 2009
Revolutionary Ferment: Cooking Up Craft Beer that Travels
Pasteurization, developed in the late 19th century , has made packaging and shipping of liquids long distances possible. Flash freezing processing has developed the frozen food market in a large global business. Beer manufacturers are trying to accomplish the same technology breakthrough in order to develop their entrepreneurial brewing into a global business. Especially in today’s society where micro-brews are ever popular and brands like Heineken, Guinness, and Stella Artois are readily available in corner stores through the United States. Belgian manufacturers are ready to enter the market and introduce the global market to their craft brews.
This article discusses how researchers in Belgium are helping small craft brewers vary their brewing techniques in order to increase shelf life. By increasing shelf life, the brewers are hoping to increase their markets to the US and other international locations. The current shelf life of their beer is only 3 months before the chemical processes make the beer taste like cardboard. Shipping to the US requires at least 5 weeks, which greatly reduces the beer manufacturers ability to distribute and sell the beer under favorable conditions. This research can greatly affect the ability of the international entrepreneur to develop their product into a true global product. What is also interesting to note in this article is that the Belgian government is supporting this research by providing a $1.7 million grant.
This article discusses how researchers in Belgium are helping small craft brewers vary their brewing techniques in order to increase shelf life. By increasing shelf life, the brewers are hoping to increase their markets to the US and other international locations. The current shelf life of their beer is only 3 months before the chemical processes make the beer taste like cardboard. Shipping to the US requires at least 5 weeks, which greatly reduces the beer manufacturers ability to distribute and sell the beer under favorable conditions. This research can greatly affect the ability of the international entrepreneur to develop their product into a true global product. What is also interesting to note in this article is that the Belgian government is supporting this research by providing a $1.7 million grant.
Tuesday, November 3, 2009
Putin Sounds Welcoming Tone to Foreign Investors
During Putin’s presidency the Russian government took over a number of oil companies. In what appears to be a reversal of earlier actions b the Russian government, Vladimir Putin has indicated that the government should step back from its involvement in the economy and allow private enterprise to help Russia out of the global recession.
In a speech at a banking forum Putin reinforced assurances by his ministers and economic advisors that Russia would be open to foreign investors. In addition he praised private enterprise and indicated at the economy stabilizes further that the Russian government would continue to cede ground to private enterprises. This could lead to new privatizations of businesses in Russia.
Most noteworthy is that Putin recognized that complete governmental intervention in economies “cannot fix everything and put everything in its place.” As a result Russia has extended an olive branch to the oil companies which it had taken over earlier in the decade. Additionally Russian may liberalize the natural gas trade. This reversal comes on the heels of the economic slowdown. Previously during the oil boom Russia was awash in money, now that the tide has turned it finds itself needing foreign investment like many emerging economies.
Read the full article here.
In a speech at a banking forum Putin reinforced assurances by his ministers and economic advisors that Russia would be open to foreign investors. In addition he praised private enterprise and indicated at the economy stabilizes further that the Russian government would continue to cede ground to private enterprises. This could lead to new privatizations of businesses in Russia.
Most noteworthy is that Putin recognized that complete governmental intervention in economies “cannot fix everything and put everything in its place.” As a result Russia has extended an olive branch to the oil companies which it had taken over earlier in the decade. Additionally Russian may liberalize the natural gas trade. This reversal comes on the heels of the economic slowdown. Previously during the oil boom Russia was awash in money, now that the tide has turned it finds itself needing foreign investment like many emerging economies.
Read the full article here.
Tuesday, December 2, 2008
Yum!
BY: Mark Nall – 10/28/08 – ENTP 6826
Abstract: The paper examines Yum! Brands, Incorporated’s strategy to drive profitable international growth for the company’s global portfolio by securing supply chains, increasing franchisees, and leading the world in restaurant multi-branding. Details of the importance of local context and the need to adhere to a global perspective on opportunities are discussed.
Citation: http://www.yum.com/
:Kotler, P. (2008).Marketing Management. Upper Saddle River: Pearson Prentice Hall
:Legace, M (2003).Around the World of Entrepreneurial Ventures. Harvard Working Knowledge
Yum! Brands, Incorporated, based in Louisville, Kentucky, is the world’s largest restaurant company boasting more than 35,000 restaurants in more than 110 countries and territories. This global chain includes Yum! Brands, Inc.’s International Division, as well as China Division, which alone homes more than 3,100 restaurants. Yum! Brand restaurants- KFC, Long John Silvers, Pizza Hut, and Taco Bell are the global leaders of the chicken, quick-service seafood, pizza, and Mexican-style food categories. Along with its acquisition of the longest running quick-service franchise in America, A&W Restaurants, Yum! Brands, Inc.’s restaurants combined for more than $10 billion in total revenue in 2007, including food sales and franchise fees.
With a huge opportunity for growth due to tremendous scale and economics, the China Division has been reported separately since 2005 due to its size, strength, and importance. While the International Division realized 2007 operating profits of more than $480 million, the China Division, alone, enjoyed 2007 operating profits of $375 million, making China Yum! Brands number one market for new company restaurant development worldwide.
Yum! Brands, Inc. is a successful venture which has combined the entrepreneurial efforts of those who created the restaurants Yum! Brands markets. Dating back to 1919 when A&W mixed up its first batch of creamy root beer, through the 1930’s depression when Harland Sanders blended special herbs and seasonings for fried chicken, to the 50’s Taco Bell inception and the 1960’s introduction of Long John Silvers and Pizza Hut, quick-service restaurants have shaped the evolution of the American diet. Now, as the global market is diversifying to meet the needs of a changing world, Yum! Brands is also diversifying to meet the needs of international expansion by incorporating local operating cultures, as well as varying menu items to different markets.
After becoming a public company in 1997, Yum! Brands has built an empire of global franchises. Over the past eight years, the company has opened more than 700 new restaurants outside the U.S., while more than doubling its operating profits. The company’s international business is one of the key factors that make them unique in the restaurant industry.
In an effort to build a vibrant global business, Yum! Brands is focusing on the following key growth strategies: building leading brands across China in every significant category; driving aggressive international expansion and building strong brands everywhere; dramatically improving U.S. brand positions, consistency and returns; and drive industry-leading shareholder and franchisee value.
There are a few central ideas which will continually aid in Yum! Brands enhancement of it global portfolio. By analyzing local context, the frequency and form of where markets and countries are headed will aid the company in developing extended performance trends. As economies are strengthened due to increased globalization, Yum! Brands positioning in the market place will also strengthen. With the introduction of more stable economies, comes more work force and more hungry workers, hence more opportunity for restaurant development.
This leads to another central idea of maintaining a global perspective on opportunities, by management, to enhance the performance of the company’s international expansion. By adhering to a global perspective on access to resources utilized by the 35,000 plus restaurants and enhancing their deal structures, Yum! Brands will decrease its costs in the supply chain, thereby increasing their operating margin. Developing international supply chains will aid in the strengthening of international economies, thus providing for increased opportunities in these areas.
In developing an expansion strategy, Yum! Brands has become the worldwide leader in restaurant multi-branding. The company has increased its presence in the restaurant market by offering consumers more choice, convenience, and value at one location by combining two restaurant brands under one roof. “Yum!’s formula for success is centered on putting people capability first because when we do that, we satisfy our customers and generate more profits”. (http:yum) In implementing this formula, the company has come to offer more than 4,000 company and franchise-owned multi-brand restaurants worldwide. This unique style has become a hit with customers as the increased menu items reveal increased customer satisfaction.
In adhering to its fore mentioned growth strategies, Yum! Brands, Inc. has become one of the fastest growing retailers in the world by opening up about three new restaurant locations outside of the U.S. everyday. Their growth strategies have aided the company in becoming a large, growing, profitable, high-return international business with a market presence which promotes strong growth opportunity. This company has become a model for international expansion by creating international operating cultures which deliver outstanding customer service including cleanliness, hospitality, accuracy, maintenance, product quality, and speed which drives sales growth around the globe. I believe other companies venturing internationally will benefit from studying this model.
Abstract: The paper examines Yum! Brands, Incorporated’s strategy to drive profitable international growth for the company’s global portfolio by securing supply chains, increasing franchisees, and leading the world in restaurant multi-branding. Details of the importance of local context and the need to adhere to a global perspective on opportunities are discussed.
Citation: http://www.yum.com/
:Kotler, P. (2008).Marketing Management. Upper Saddle River: Pearson Prentice Hall
:Legace, M (2003).Around the World of Entrepreneurial Ventures. Harvard Working Knowledge
Yum! Brands, Incorporated, based in Louisville, Kentucky, is the world’s largest restaurant company boasting more than 35,000 restaurants in more than 110 countries and territories. This global chain includes Yum! Brands, Inc.’s International Division, as well as China Division, which alone homes more than 3,100 restaurants. Yum! Brand restaurants- KFC, Long John Silvers, Pizza Hut, and Taco Bell are the global leaders of the chicken, quick-service seafood, pizza, and Mexican-style food categories. Along with its acquisition of the longest running quick-service franchise in America, A&W Restaurants, Yum! Brands, Inc.’s restaurants combined for more than $10 billion in total revenue in 2007, including food sales and franchise fees.
With a huge opportunity for growth due to tremendous scale and economics, the China Division has been reported separately since 2005 due to its size, strength, and importance. While the International Division realized 2007 operating profits of more than $480 million, the China Division, alone, enjoyed 2007 operating profits of $375 million, making China Yum! Brands number one market for new company restaurant development worldwide.
Yum! Brands, Inc. is a successful venture which has combined the entrepreneurial efforts of those who created the restaurants Yum! Brands markets. Dating back to 1919 when A&W mixed up its first batch of creamy root beer, through the 1930’s depression when Harland Sanders blended special herbs and seasonings for fried chicken, to the 50’s Taco Bell inception and the 1960’s introduction of Long John Silvers and Pizza Hut, quick-service restaurants have shaped the evolution of the American diet. Now, as the global market is diversifying to meet the needs of a changing world, Yum! Brands is also diversifying to meet the needs of international expansion by incorporating local operating cultures, as well as varying menu items to different markets.
After becoming a public company in 1997, Yum! Brands has built an empire of global franchises. Over the past eight years, the company has opened more than 700 new restaurants outside the U.S., while more than doubling its operating profits. The company’s international business is one of the key factors that make them unique in the restaurant industry.
In an effort to build a vibrant global business, Yum! Brands is focusing on the following key growth strategies: building leading brands across China in every significant category; driving aggressive international expansion and building strong brands everywhere; dramatically improving U.S. brand positions, consistency and returns; and drive industry-leading shareholder and franchisee value.
There are a few central ideas which will continually aid in Yum! Brands enhancement of it global portfolio. By analyzing local context, the frequency and form of where markets and countries are headed will aid the company in developing extended performance trends. As economies are strengthened due to increased globalization, Yum! Brands positioning in the market place will also strengthen. With the introduction of more stable economies, comes more work force and more hungry workers, hence more opportunity for restaurant development.
This leads to another central idea of maintaining a global perspective on opportunities, by management, to enhance the performance of the company’s international expansion. By adhering to a global perspective on access to resources utilized by the 35,000 plus restaurants and enhancing their deal structures, Yum! Brands will decrease its costs in the supply chain, thereby increasing their operating margin. Developing international supply chains will aid in the strengthening of international economies, thus providing for increased opportunities in these areas.
In developing an expansion strategy, Yum! Brands has become the worldwide leader in restaurant multi-branding. The company has increased its presence in the restaurant market by offering consumers more choice, convenience, and value at one location by combining two restaurant brands under one roof. “Yum!’s formula for success is centered on putting people capability first because when we do that, we satisfy our customers and generate more profits”. (http:yum) In implementing this formula, the company has come to offer more than 4,000 company and franchise-owned multi-brand restaurants worldwide. This unique style has become a hit with customers as the increased menu items reveal increased customer satisfaction.
In adhering to its fore mentioned growth strategies, Yum! Brands, Inc. has become one of the fastest growing retailers in the world by opening up about three new restaurant locations outside of the U.S. everyday. Their growth strategies have aided the company in becoming a large, growing, profitable, high-return international business with a market presence which promotes strong growth opportunity. This company has become a model for international expansion by creating international operating cultures which deliver outstanding customer service including cleanliness, hospitality, accuracy, maintenance, product quality, and speed which drives sales growth around the globe. I believe other companies venturing internationally will benefit from studying this model.
Wednesday, November 26, 2008
New York Eatery Looks for The Sweet Spot Overseas
Chocolate Bar, a
It all started when Ms. Ghorbial, a Dubai-based investor, called Ms. Nelson because interested in a partnership that would bring high-end chocolate to the region’s increasingly worldly consumer class. In spite of Ms. Nelson’s initial hesitation, Ms. Ghorbial succeeded in closing the deal. She explained how the Arabic consumer is becoming more and more globalized thanks to Internet and satellite TV. Middle-Easterners are also fascinated by the prestige of European and American brands. Besides, while Americans are cutting back on discretionary purchases because of the economic slowdown, the
After closing the deal, Ms. Nelson started to adapt her products to this new and unfamiliar market. She produced more milk and white chocolate, the favorites in the region. She created big platters for gift-giving, since Middle-Easterners use chocolate to celebrate important occasions. Because Muslims don’t eat pork, she also removed prosciutto from her menus. Furthermore, she adapted the stores to the local culture. So each store will have smaller and more distant tables to allow more privacy and will also provide isolated banquettes for women. Adjustments were also necessary in the way Ms. Nelson operates. She learned to do business the Arabic way, which requires long meetings, hours of phone calls and no internet search.
Despite the time-consuming set-up process, Ms. Nelson is sure she has made the right move.
Monday, November 24, 2008
HTC Corp on Asia's Fab 50 Companies (2008)
HTC Corp on Asia's Fab 50 Companies (2008); Forbes.com; 9/15/08; Joyce Huang
Abstract
HTC, a Taiwan based electronics and mobile device company, has recently become the largest producer of mobile phones that use the Microsoft Windows operating system. Their growth is largely due to their shift in strategy. Nearly two years ago, the company shifted its core focus to branding. Through innovation and key partnerships the company has been experiencing growth and success. While this growth has allowed their strengths to shine through and has created many opportunities, there are still many challenges and potential threats that lie ahead. Chou and his team are on the right path but need to remember that success requires a certain balance. With Chou’s experience and visionary leadership, it appears that the company should be able to overcome the challenges that lie ahead.
Gabbie Romano
International Entrepreneurship / ENTP 6826
October 28, 2008
Abstract
HTC, a Taiwan based electronics and mobile device company, has recently become the largest producer of mobile phones that use the Microsoft Windows operating system. Their growth is largely due to their shift in strategy. Nearly two years ago, the company shifted its core focus to branding. Through innovation and key partnerships the company has been experiencing growth and success. While this growth has allowed their strengths to shine through and has created many opportunities, there are still many challenges and potential threats that lie ahead. Chou and his team are on the right path but need to remember that success requires a certain balance. With Chou’s experience and visionary leadership, it appears that the company should be able to overcome the challenges that lie ahead.
Gabbie Romano
International Entrepreneurship / ENTP 6826
October 28, 2008
China’s Alibaba Expands to India, Japan
BusinessWeek.com; China’s Alibaba Expands to India, Japan; 9/5/08; Bruce Einhorn
Abstract
Alibaba, the China based e-commerce company, connects small and medium sized importers and operates certain Chinese web sites including Yahoo! China and Taobao.
The company has been profitable and successful. In November of 2007, they offered an IPO on the Hong Kong Stock Exchange and did very well. However, this trend did not continue. There are several factors contributing to this downturn. Chinese exports are declining since the RMB is currently so strong. In addition, labor costs in China are on the rise. These factors are directly affecting Alibaba’s customers and therefore affecting Alibaba. Under the solid leadership of Jack Ma they are using a strategy of market diversification to ensure that they are still players in the world of e-commerce for years to come. Currently, Alibaba is expanding into India, Japan and Korea.
Gabbie Romano
International Entrepreneurship / ENTP 6826
September 23, 2008
Abstract
Alibaba, the China based e-commerce company, connects small and medium sized importers and operates certain Chinese web sites including Yahoo! China and Taobao.
The company has been profitable and successful. In November of 2007, they offered an IPO on the Hong Kong Stock Exchange and did very well. However, this trend did not continue. There are several factors contributing to this downturn. Chinese exports are declining since the RMB is currently so strong. In addition, labor costs in China are on the rise. These factors are directly affecting Alibaba’s customers and therefore affecting Alibaba. Under the solid leadership of Jack Ma they are using a strategy of market diversification to ensure that they are still players in the world of e-commerce for years to come. Currently, Alibaba is expanding into India, Japan and Korea.
Gabbie Romano
International Entrepreneurship / ENTP 6826
September 23, 2008
Subscribe to:
Posts (Atom)