Thunder Rock Is a Small Microbrewery on the Outskirts of Toronto.Sales

question 57

Essay

Thunder Rock is a small microbrewery on the outskirts of Toronto.Sales have grown rapidly in the last two years mainly through word of mouth.Thunder Rock has a small brewery that is producing at full capacity at the moment.Thunder Rock has been written up in many business publications as an example of a well-run small business.As a result of the publicity they have received a lot of attention from venture capitalists and companies that want to buy them out.Thunder Rock wants to grow their business but is unsure which direction they want to take.They could expand in the Canadian market,but it is saturated with many microbreweries already.China is a huge untapped market that does not have a lot of foreign beers yet.There are a couple of large Chinese breweries like Tsingtao,that dominate the market but there are many foreigners now living in China that have a different taste for beer than Tsingtao.a.Describe in detail what would be your recommendation for how they should enter the Chinese market.b.Explain the reasons why you chose this entry strategy and the advantages and disadvantages compared to other possible methods a business might enter a country.

---

Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Price Floor

A government-imposed minimum price charged for a good or service, aimed at preventing prices from falling too low.

Legal Price

The price of a good or service as determined or influenced by law or regulation, often in the context of price controls or minimum wage laws.

Dynamic Pricing

Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demand.