The Market Expansion On Example Of Saigon Pete’s Essay

Today, the fast and aggressive business development is pivotal because companies that fail to conduct the business expansion fast are often doomed to failure. The competition in the contemporary business environment tends to grow. Therefore, Saigon Pete should consider the possibility of the business expansion by the introduction of new trucks. In actuality, it is not just the matter of obtaining some extra profits but also and mainly it is the matter of the company’s survival in a long-run perspective because the enhancement of government regulations and the stiffening competition will raise substantial barriers on the way of the company in the future.

The company has a strategic advantage that opens great opportunities for the market expansion because, at the moment, the company is the only one that has trucks serving Vietnamese food restaurants. Therefore, if the company decides to expand now, the expansion will be fast and easy. On the contrary, if the company fails to expand now, rivals are likely to appear and take a larger share of the market that will force the company to expand but, in such a case, the expansion will be costlier because the company does not have rivals and, hence, the company does not need to overcome barriers raised by rivals. Saigon Pete’s is the first truck company supplying non-Mexican food. Therefore, the company holds the different position compared to other truck companies delivering ethnic food.

Moreover, the company is likely to confront the growing competition, as the number of trucks delivering specialties and various food increases. In such a situation, even the differentiation may not help the company to maintain its competitive position, unless Saigon Pete’s expands. The daily performance of company’s trucks is better compared to rivals. Therefore, the company can expand to increase its revenues and invest into the further business expansion. In fact, the company has the potential to grow as the target market has not been saturated so far.

Furthermore, the expansion of the company will contribute to the growth of sale rates. The company will not only increase sales but also expand its market share. The company has to enhance monitoring of local events to obtain more information on locations, where the company’s trucks can rip off maximum profits. At the same time, a larger amount of trucks will help to cover more locations. Therefore, the improvement of events’ monitoring will help the company to increase its revenues and optimize its performance as more trucks will reach locations, where events take place and where sales are high. Vietnamese restaurants are still popular in the city and they have a large number of loyal customers. At any rate, Vietnamese restaurants are not new in the city. Therefore, they have a stable customer group with the stable demand, which Saigon Pete’s will match, but three trucks are not enough and the introduction of new trucks will help to match the current demand in the market.

At the same time, the market expansion and increase of the number of trucks will raise certain challenges. First, each truck has to obtain licenses and permits to be admitted to transporting food products. Second, the company will need to enhance its management to improve the marketing performance and keep business running. Furthermore, the company’s trucks are not new and the public has accustomed to them. Therefore, the company cannot count on the exclusiveness of their trucks to succeed in the market anymore. Instead, the market should focus on the routine expansion to win the market not by exclusiveness but also and mainly by the quantity and large market share of the company. The early success passes away and the company has to introduce new strategies and marketing policies to stay competitive in the market. In this regard, the business expansion opens new ways for the successful marketing and enhancement of the competitive position of Saigon Pete’s in the market.

In addition, the company is likely to face the problem of tightening regulations concerning food trucks because of their negative impact on parking space. Nevertheless, the company can gain a strategic advantage as it expands fast before any regulations are introduced because the government should not impose sanctions on existing food trucks but would rather limit the appearance of new ones. Hence, the company should take the full advantage right now or it will lose its position and any further attempt to expand the number of trucks will be costlier than now.

Finally, the company can count on the lobby from the part of Roseanne Diaz, a councilperson, whom Pete supported during her electoral campaign. Therefore, the company can count on her support but the company has to act fast because, in the future, the pressure on Saigon Pete’s and Roseanne Diaz will grow stronger as regulations will grow tighter and competition will grow stiffer. In such a situation, the decision to increase the number of trucks is the only plausible solution that the company may take in current conditions.

Thus, Saigon Pete’s should consider the further business expansion by the acquisition and introduction of new trucks to operate in the market. The market expansion is essential because of the growing rivalry in the industry, decrease of the exclusiveness of its trucks and the prospect of the introduction of strict government regulations. Hence, the company should introduce new trucks to keep progressing and succeeding in the market in a long run.