ENTERING A

GLOBAL MARKET
CASE STUDY : BEIJING SAMMIES

PREPARED BY:
DIANA 202000020018
DEDY
YOSAFAT WINDRAWANTO
GABRIELLE ANGELINA
COMPANY OVERVIEW

Founded by a Canadian entrepreneur with the vision of “providing people with a place to
hangout and enjoy homemade western food.”
• SAMMIES sells Deli products (sandwich, bagel, etc) in a deli style cafes and kiosk as a
service-oriented business.

• Target market:
Expatriates communities, tourists, as well as trendy and young communities in Beijing.
• Revenue:
#1 Corporate Clients; #2 Local walk-in Customers.
• Operation:
Sammies operate a central kitchen that will deliver to its cafes and kiosk in Beijing area.
Allowing the cafes and kiosk to focus on customers service.
• Social Responsibility Program:
Charity sponsorships focused around the expat community in Beijing.
MACRO-ENVIRONMENT ANALYSIS
POLITICAL
• LOCATION : BEIJING, PEOPLE’S REPUBLIC OF CHINA
• COMMAND / SOCIALIST ECONOMIC SYSTEM. The owner (Goodman) is of foreign nationality. Which means, entering
this market was quite challenging in terms of bureaucracy.

ECONOMICAL
Operating in the capital city has made Beijing Sammies able to reach its target market better,
which focused on expatriates, tourists, as well as young and trendy Chinese customers within
the middle-to upper class segment.

SOCIAL / CULTURAL
Posed a significant challenge as Beijing Sammies found it hard to run its service-oriented
business, particularly with its own human assets.

TECHNOLOGICAL
The payment method at the time was adequately accommodated to allow debit card
transaction for corporate orders.
ENTRY STRATEGY ADOPTED BY
BEIJING SAMMIES (JOINT-VENTURES)
ADVANTAGE
Access to local knowledge 
Shared development costs and risks 
Politically Acceptable 

DISADVANTAGES
Lack of control over technology. 
Inability to engage global strategic coordination.
Inability to realize location and experience curve
economies.
PROBLEM ENCOUNTERED BY BEIJING SAMMIES

• Partner became oppressive to

Goodman in order to kick him
out of the business at the time
Sammies became successful.
• Significant difficulties
encountered when training its
own employee regarding service-
oriented business.

SOCIO-CULTURAL
ISSUE
HAS THE ENTRY STRATEGY CHOSEN
SERVED THE NEEDS OF SAMMIES’
BUSINESS OPERATION IN BEIJING?
WHERE IT WENT WELL

• As far as entering the market concerns, joint-venture was

the way to go, compared with the other entry mode.
• Tough Chinese bureaucracy could be coped with.

• Collecting capital fund was more doable since it was

shared with a business partner. Risks relating to cashflow
are divided between partners.
WHERE IT DID NOT GO WELL?
• Joint-ventures has made Sammies faced a backstab by its
own partner as the business went uphill and became a hit.
Thus, Sammies must go through a major hiccup at the time
(bad-faith from its business partner & tenants).
• The exposure of cultural differences for businesses that
chooses local presence as their business operation mode
choice.
As Sammies is a service-oriented business, the quality of
human resource is at high-stake. However, the lack of
understanding of the sales assets continuously posed a
challenge for Sammies business operation.
 IS THERE ANY FOREIGN OPERATION MODES
AVAILABLE TO BE ADOPTED AND MAY BETTER
SERVE SAMMIES IN ITS OPERATION?
 FOREIGN OPERATION MODES ANALYSIS
FOREIGN
ADOPTION POSSIBILITY EXPLANATION
OPERATION MODE
EXPORT/IMPORT NO Sammies sells perishable goods and is service-oriented in
nature.
FRANCHISING / POSSIBLE with a drawback. Yes. The entire business operation can be handed to its
LICENSING franchisee or licensee. Less scrutiny placed on the
business (by the government or by other competitors as
the operation is handled by local people).

Challenge. Quality control in service and products are

arguably harder to maintain as much as it could be in
joint-venture, considering the cultural (values)
differences.

LOCAL PRESENCE POSSIBLE with more effort. Yes. More hands-on to quality control (needed to
maintain Sammie’s competitive advantage: service and
product excellence).

Challenge. More effort made upon entry.

CONCLUSIONS & RECOMMENDATION