Question

short answer questions:

Expanding U.S. Models Abroad - consider this when posting on the cases, particularly for Uber and Haagen Daz.

Does the U.S. model always work abroad? Can/will it work for Uber? How are they doing today?

Price elasticity and branding issues - consider how pricing and willingness to pay premium pricing affects Haagen Daz. How do they deal with high prices (i.e., landed costs, etc.) in the market? Can they charge a drastically different price than other markets

Answer 1

The US model of business is applicable only in countries which are either developed or is an emerging economy in which the consumers have a high propensity to pay. That being said it is important to understand that the amount of premium that a company can command in a certain market would be very different from the US market.

This is where the whole play is and that is pricing. Consumers in emerging markets are willing to pay a premium if they are certain that they are deriving value out of a particular transaction.This is different from US markets where most of the purchases made by people are impulsive in nature.The businees model of Uber is unique and provides a usp to the consumers but also the technology is easily replicable and a source of threat. So a good distribution along with a differentiation in service is something which cannot be stressed enough.

Hagen Daz is in such a segment targetting such customers who are relatively insensitive to price easiest of demand and its more about presence and the overall services that consumers get from the brand.The price that they charge however cannot work in isolation and needs to a function of the local spending patterns and the economy and mentality of the markets they operate in.