Introduction
In the drive to maximize profits, companies are fast realizing the importance of business expansion in tapping hitherto unexhausted markets. Bruegger’s Bagel Bakery plan to expand to Seattle, WA, Dallas, TX, and Charleston Sc is a timely decision that must be pursued if the company is to become a market leader in the industry.
In choosing a suitable geographical location during expansion, several factors are worth looking at, the first consideration is if the company has the financial ability to invest in the new market (Lesikar-Flatley-Rentz, p. 432). Financial ability is very important while making investments decision considering the fact that of all resources a company has at its disposal, it is capital base that determines the final decision. If a company has other vital resources such as human resources, technological capacity as well as know-how, the above resources still cannot enable a company to expand to new locations.
Main body
Another important factor that Bruegger’s Bagel Bakery will have to look at is the suitability of each geographical location before making the final decision on whether to set up a branch or not. In assessing the suitability of a given location, the following factors must be considered: demands, infrastructure, accessibility of raw materials, cost of production, economic environment, political environment as well as competitor activity. Careful SWOT analysis, as well as PESTEL analysis, must follow so as to identify needs, challenges, threats, and opportunities at hand. Dallas is the most attractive location for Bruegger’s Bagel Bakery since there are fewer competitors in Dallas than other potential locations such as Seattle, WA, TX, and Charleston Sc.
The fact that there are fewer competitors in Dallas implies a potential for a higher demand for Bruegger’s Bagel Bakery products hence better chances of success. In addition, Dallas is a favorable destination for Bruegger’s Bagel Bakery because of its relatively higher population compared to Seattle, WA, TX, and Charleston Sc. A higher population although not guaranteed portends a greater potential for market activity. However, Bruegger’s Bagel Bakery must undertake the necessary needs analysis of the population to ascertain why there are fewer players in the town compared to other nearby locations.
Until Bruegger’s Bagel Bakery ascertains the reasons why other industry players have kept away, it would be unwise for the company to venture into the new location. However, according to the evidence available Dallas remains the most viable expansion destination.
Upon identification of growth opportunities in Seattle, WA, TX, and Charleston Sc a decision can be arrived at on whether Bruegger’s Bagel Bakery should go ahead and expand by opening a new branch in any of the above locations.
While it may be true that, the above locations have some potential, there is a need for Bruegger’s Bagel Bakery to carefully carry out an analysis so as to fully understand the potential for growth considering the fact that there are too many players operating in the said markets. In line with industry activity, it appears that the growth opportunity in the above-mentioned towns cannot guarantee an automatic success hence the need for Bruegger’s Bagel Bakery to postpone its intentions of expanding to a new market location further.
Conclusion
In conclusion, this report highly recommends that Bruegger’s Bagel Bakery should go ahead with the plans to open new branches but only intermittently. First, Bruegger’s Bagel Bakery should open a branch in Dallas where there is a big opportunity for growth and subsequently open new branches at Seattle, WA, TX, and Charleston Sc as the situation may dictate and depend on the prevailing situation.
Work Cited
Lesikar-Flatley-Rentz: Business Communication: Making Connections in a Digital World, 11th Edition McGraw-Hill. ISBN: 0390811912.