Levendary Caf
Question 1: What is your evaluation of the way Levendary Cafe has entered the Chinese
market?
Levendary Caf decided to enter the Chinese market because China was conductive for
investment, population, and GDP growth, and more importantly, western fast food
companies attracted the most attention from Chinese middle class. The way that Levendary
Caf entered the Chinese market was opening a store in its central location, which was
important in its growth of success and proved that Chen had a strong market position in
China. Then, Chen used this initial and expanded broader market in China using credibility
from the US headquarters, which helped the caf gain larger customer base. Chen was an
expert in Chinese culture and its customer needs, so he was using the correct concept to
deal with customers, which was different from the US locations, to gain Levendary Caf in
China decent financial performance. The following Ben Franklin chart briefly includes the
pros and cons of Levendary Café’s leaping into China:
Pros Cons
Levendary China relies fully on Chen’s execution, as he has a strong market position in
China, and he is an expert in local market. Giving Chen the total control of the China
market allows him to have an attitude against reporting his decision to the US
management.
Chen’s knowledge about Chinese market makes the café’s adaption more flexible, with
more customization due to Chinese customer’s taste. Excess change of menu items and
store environment in China makes the brand lose its unity and standardization with the US
domestic chains.
