Toronto University: Irie's Competitive Challenges Case Study Analysis

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Case Study
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This case study examines the competitive challenges faced by Irie Caribbean Restaurants and Caterers, located near the University of Toronto. The analysis highlights key issues, including the lack of an illuminated signboard, an inadequate restaurant layout, and, most critically, a weak competitive strategy that neglects the importance of online food ordering platforms. The assignment explores potential solutions, such as opening accounts on online food delivery services and offering ready-to-cook dishes to compete with supermarkets. The BCG matrix and Canadian GDP data are used to analyze the market and justify recommendations. The study recommends that Irie establish an online presence, renovate its premises, and implement an action plan to allocate funds, open online accounts, update its website, and monitor sales. The conclusion emphasizes the importance of an online presence and renovation for enhancing customer satisfaction and revenue generation.
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Running head: IRIE’S COMPETITIVE CHALLENGES
Irie’s Competitive Challenges
Name of the Student:
Name of the University:
Author Note:
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IRIE’S COMPETITIVE CHALLENGES
Introduction and summary of main facts:
The position of restaurants, their layouts and even their online presence play important
role in the enhancing customer satisfaction. The researcher would study these aspects in the light
of a case study, which mentions an arbitrary restaurant called Irie Carribbean Restuarants and
Caterers.
Main facts:
Irie Carribbean Restuarants and Caterers was situated on the College Street near the St.
Georges Campusof the Toronto University, a position which was highly advanatgeous. The
restaurant did not use a lighted signboard advertising its name and its intrenal layout needed
renovation. The biggest issue was the weak competitor analysis and startegy, which included not
considering online food ordering platforms as important business aspects. The issue would form
the primary problem, which would require the management to decide alternatives and implement
measures to enforce them (Choi & Oyunbileg, 2016).
Analysis of the data:
An analysis of the case study reveals several issues in the operations of Irie, which would
imapct its customer satisfaction enhancement and profit generation. First, the restuarant in spite
of being sitauted on the advantageous position on the College Street did not use illumated
signboard. The customers were not able to locate the restaurant, which caused inconvinience to
them. Second, the layout of the restaurant was that of a pizerria with not sitting arrangement.
Moreover, the customers had to wait in the narrow passage, which caused inconvinience to the
other customers (Doub et al., 2015). The biggest issue was the competitive startegy, which did
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IRIE’S COMPETITIVE CHALLENGES
not consider the increasing importance of online food-ordering portals. This was the most serious
issue of the three because lack of online presence actaully curbed the capacity of the restaurant to
accept orders and process them to generate revenue. Moreover, the restuarant did not consider
the supremarkets, which sold ready-to-cook restaurant preparations as its secondary competitors.
Considering the increasing trend among the Canadian customer base to use services of online
portals to order food, it can be inferred that the competitor restuarants had online presence. This
lack of online presence of Irie resulted in less revenue generation, which aggravated the issue
(See-Kwong et al., 2017).
Problem statement:
The competitive strategy of Irie required urgent decision-making right at the apical
management level to include online presence and its own ready-to-take range of items as parts of
its competitive strategy.
Generations of alternatives:
The following are the two alternatives, which the apex management of Irie can consider
as the solution to its grave third issue:
Alternative 1: Opening account on online food delivery services:
The top management of Irie should consider opening account on online food ordering
system like Oddle (oddle.me, 2018). The strategy would require huge initial investment to enter
into contract with online food order-processing companies and change in technology to accept
orders online.
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IRIE’S COMPETITIVE CHALLENGES
Alternative 2: Making available ready-to-cook dishes to customers:
The case study does not mention the supermarkets, which sell packaged ready-to-cook
food items as the secondary competitors. The apex managent of Irie requires considering these
super markets as secondary competitors. This is because the restuarants sell ready-to-cook
packaged food, which customers prefer in order to avoid waiting at the restaurant counters. Thus,
these supermarkets deserved consideration in the competitve strategies of the restaurants. Irie in
response to this competition from super markets should sell its own range of ready-to-take way
dishes at its counter (Kraak et al., 2016).
Key decision criteria:
As pointed above the key decision criteria which Morrison can consider are entering the
online food ordering platforms and offering its own range of ready-to-eat food items. The third
option is revamping the restaurant premises to meet the requirements of the customers like
extended waiting area. The apex management need to decide between the different options by
comparing the cost they attract and the benefits they would bring the organisation.
Alternative analysis:
The analysis of these two alternative strategies, which Irie can consider, can be studied
through the following frameworks:
BCG matrix:
The online food service is a fast developing market globally which is backde by
increasing prferences of customers order food online. The advancement of science has enable
customers to view and order food from various restaurants even while travelling. Moreover, food
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IRIE’S COMPETITIVE CHALLENGES
portals are available on diverse digital divices like laptops and smart phones. These factors have
led online food portals emerge as profitable markets, which is generating high revenue (Hurwitz
et al., 2016). This growing market demand has placed online food portals in the star position as
shown above.
Market growth rate
High
Star(Online
food portal)
?
Low
Cow (Inhouse
dining facilities
)
Dog (Ready
made
restaurant
items)
High Low
Relative market share
Figure 1. BCG matrix showing position of online food ordering systems compared to takeways
and traditional inhouse dining
(Source: Author)
GDP of Canada graph:
The graph below shows that increasing GDP per capita in Canada which means that the
people in the country have more disposable income. Canada is technologically very advanced
which means the people in the country have more access to online food order placement portals
using their mobile phones. These favaourable economical and technolpogical factors have
encouarged most of the restaurants to invest in online food ordering portals to enhance their
competitive advantages (Novatorov, 2016).
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IRIE’S COMPETITIVE CHALLENGES
.
Figure 2. Graph showing GNP per capita of Canada
(Source: tradingeconomics.com, 2018)
Recommendations:
One can recommend the following changes in the light of the above analysis:
Online presence:
Irie must open account on online portal to be able to accept more orders for its food
items. This would enable the restaurant generate demand among customers in other localities as
well which boost its revenue generation. The online portal would also enable the firm to promote
its products before a large number of customers simultaneously. The restaurant would as a result
strengthen its revenue generation and goodwill by extending its online presence.
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IRIE’S COMPETITIVE CHALLENGES
Renovation:
The necessity to strengthen competitiveness requires the firm to renovate its premises
since it plays important role in the marketing of the firm. The present premises of Irie was had
the design of a pizza outlet with no sitting arrangement. The premises had insufficient space for
large number of customers, which caused inconviniece to customers. The firm should renovate
its premises or acquire a new premise with sufficient space for customers. This would also
enable the firm to market its business and maximum customer satisfaction, thus generating more
profit.
Action and Implementation of the plan recommended:
The following are the actions, which the apex management of Irie would take to
implement its strategy of extending its presence on the digital online portal:
Allocation of funds:
The management of the Irie should allocate funds towards opening an account with
online food ordering portal.
Opening account with online food ordering portal:
The restaurant would then open an account with an online order proccessing portal. This
would require both the restaurant and the portal owner enter into contract, decide on the menu
which the portal to make available to the customers and decide on various other business terms.
Updation of wesbite with app and software information:
The company must update its present website and make this online food ordering
information available to all customers. The firm should also extend its presence in form of
applications, which would be accessible to customers on their smart phones.
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IRIE’S COMPETITIVE CHALLENGES
Evaluation of increase in sales and goodwill to test success of plan:
The company on regular basis should monitor and review the profit generated after the
adoption of online food ordering portal. It should kepe on revamping the features and
presentations on the portal available to customers to stimulate more business gemeration.
Conclusion:
One can conclude from the discusion that Irie should extend its presence on the online
food-ordering portal. This would extend it to process more orders and generate more revenue.
However, adoption of the startegy would require alllocation of funds and training of staffs to
operate in the new way. The restaurant should also renovate its present premises to enhance
customer convinience and satisfaction. The firm should align its appeal with its business
objective and increase its revenue generation.
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IRIE’S COMPETITIVE CHALLENGES
References:
Businesswire.com. (2018). Online On-demand Food Delivery Services Market - Growth Analysis
and Forecast| Technavio. [online] Available at:
https://www.businesswire.com/news/home/20171213006080/en/Online-On-demand-
Food-Delivery-Services-Market-- [Accessed 16 Mar. 2018].
Canada Gross National Product | 1961-2018 | Data | Chart | Calendar.
(2018). Tradingeconomics.com. Retrieved 16 March 2018, from
https://tradingeconomics.com/canada/gross-national-product
Choi, N. H., & Oyunbileg, T. (2016). Interaction Effects of Arousal Level of Positive Ambient
Emotion and Advertisement Type on Product Evaluation. Asia Marketing Journal, 18(1),
37-53.
Doub, A. E., Levin, A., Heath, C. E., & LeVangie, K. (2015). Mobile app-etite: Consumer
attitudes towards and use of mobile technology in the context of eating
behaviour. Journal of Direct, Data and Digital Marketing Practice, 17(2), 114-129.
Hurwitz, L. B., Morales, E. D., Montague, H., Lauricella, A. R., & Wartella, E. (2016). Mobile
marketing to children: a content analysis of food and beverage company apps. Public
health, 141, 241-244.
Kraak, V. I., Vandevijvere, S., Sacks, G., Brinsden, H., Hawkes, C., Barquera, S., ... &
Swinburn, B. A. (2016). Progress achieved in restricting the marketing of high-fat, sugary
and salty food and beverage products to children. Bulletin of the World Health
Organization, 94(7), 540.
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IRIE’S COMPETITIVE CHALLENGES
Novatorov, E. (2016). Marketing social innovations concept: an appeal for methodological
pluralism.
Online Ordering System Built for Restaurants | Oddle. (2018). An All-in-One Food Ordering
System. [online] Available at: https://oddle.me/our-product [Accessed 16 Mar. 2018].
Podoprigora, M. G., & Nazvanova, I. A. (2015). Territory Marketing: Its Notion, Specific
Features and Implementation Stages. Mediterranean Journal of Social Sciences, 6(3 S4),
165.
See-Kwong, G., Soo-Ryue, N., Shiun-Yi, W., & Lily, C. (2017). Outsourcing to Online Food
Delivery Services: Perspective of F&B Business Owners. Journal of Internet Banking
and Commerce, 22(2).
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