Business Strategy INTRODUCTION

   

Added on  2020-07-23

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Business Strategy
Business Strategy INTRODUCTION_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Porter five forces..........................................................................................................................1Mapping strategic group in HK restaurant..................................................................................2Value chain analyse.....................................................................................................................5RECCOMENDATION....................................................................................................................7Market segment...........................................................................................................................7Extent branding............................................................................................................................8Quality.........................................................................................................................................8Marketing efforts.........................................................................................................................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
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INTRODUCTIONBusiness strategy is an ideal for those who are approaching strategies for the first time intheir business. This strategy provides many tools and techniques to analyse both internal andexternal factors so that organisation can identify appropriate strategies for the obstacles. In thisassignment TsuiWah restaurant is taken (Aldehayyat, 2011). This restaurant is mainly famous fortea and they are having more than 25 branches in China, it was established in 1960. Some ofthese tea houses are providing 24 hours’ service and they are focused to improve their businessby making strategy for each and every small thing like; sitting arrangement and locations. In thisreport porter five forces have been explained in regard to restaurant. Along with this mappingstrategic group in regards to HK eatery. Further, recommendation has been provided in regardsto extent branding, marketing efforts, segments and many more. TASKPorter five forcesPorter’s five forces analyses is a framework in analysing the characteristics which isaffecting competition within same industry. This analysis is best suited for company to evaluateindustry competition. It will also help to restaurant in establishing an appropriate strategy. Ifthere is a less competition in same industry, then there will be a high chance to earn high profit.These forces model is having three components which help to organisation in measuringcompetition (Azar, 2011). External forces include threat of new entry, substitutes, rivalry amongexisting firms. Whereas internal force includes bargaining power of supplier and customers. Thecombination of these both forces determines the level of competition which will affect tocompany goals and objectives. Tsuiwah restaurant have to analyse these forces which will helpthem to analyse their position in competitive market. Bargaining power of customer – The more pressure from customer choice in regards totaste and preferences which also exert on restaurant. Bargaining power of customer gives benefitto organisation in increasing their profitability. For example, if queue is too long on one outlet,then buyer can probably go to another restaurant which is suited across the road or in newlocation. If there is high bargaining power of buyer, then it will disadvantage to restaurant tooperate their functions at new location. 1
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Bargaining power of supplier – The main dealer in fast food industry are dairyproducts, meat vendors and many more. Their bargaining power is low if there are less numberof customers. If there is less number of supplier, then it will show lack of differentiation amongproducts. The manager Tsuiwah have to deal with number of suppliers in order to operate theirrestaurants in other country also. It will also help them in attracting new celebrities in othermarket. Competitive rivalry among competitors – There are many competitors of this companyis Café de Coral who is also serving different varieties of food (Ban, 2012). If there is highcompetition, then there will be high of eateries who are also selling quality of products. This canbe disadvantage for Tsuiwah restaurant to retain in market for a long period of time. It is alsogauges level of competition between revivals and existing company which directly impact on theprice and quality of food. For example, low cost of storage and low exit barriers. Threats of substitutes – The availability of substitute product may increase the chanceof loss of customers from own restaurant. So, cited restaurant has to properly analyse the taste ofcustomers to retain them for a long period of time. The competitors of this company is alsoselling different type of foods to target other customers (Moreno-Izquierdo, Ramón-Rodríguezand Perles-Ribes, 2016). So, it is responsibility of Tsuiwah manager to provide those disheswhich can retain the customers for a long period of time. Threat of new competitors – New competitors are giving opportunity to existing frim toearn more profits. In current scenario, it become difficult for new company to beat existingorganisation in terms of providing high quality of services. It can also become barrier for them inretain in market (Cheng, 2013). If there is an increase in competition in same industry, then therewill be a lower chance of earning more profit. If there will be new entry company who is beatingTsuiwah restaurant, then they have to maintain their quality of food and price to keep thecustomers happy. Mapping strategic group in HK restaurant Strategic groups are set out by firms which are following similar strategies. The analysisof strategic group can offer a significant insight to executives to run their operations smoothly.For example, restaurant industry can be divided into several strategic groups which including fastfood, coffee and teas, fine-dining. These variable are based on pricing, presentation andpreparation time. TsuiWah restaurant comes under retailer sector and their competitors are2
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