A Business Strategy for a Chinese Restaurant, Correcting Its Marketing Gaps, and Developing Internal Integration Free Essay Example, 2250 words

New entrants pose a high threat in the food industry. The food industry is mainly associated with high profits if planned strategically. The start-up cost for setting up new ventures is also medium to low. This leads to high chances of new entrants which affect the market share of an already established restaurant like Hai Di Lao Hot Pot. Threats of substitutes: There is a medium threat that arises from substitute goods and services in the food industry and for a restaurant like Hai Di Lao Hot Pot. Similar products by other Chinese fast food restaurants act as substitutes. The customers recognize the brand value of this restaurant and the pricing and quality of the product suit the consumer s requirements. Bargaining power of suppliers: The bargaining power of the suppliers is low as the industry is subjugated by large supplies and the operations of the restaurant like Hai Di Lao Hot Po is significant enough to dominate over the price margins of the suppliers. Bargaining power of b uyers or customers: The bargaining power of the customer is medium as many similar goods and services are available in the industry. We will write a custom essay sample on A Business Strategy for a Chinese Restaurant, Correcting Its Marketing Gaps, and Developing Internal Integration or any topic specifically for you Only $17.96 $11.86/page The following points should be focussed on: The restaurant enjoys a sustainable competitive advantage in case of customer response time. Then restaurant highly values and ensures customer satisfaction (Hai Di Lao hot pot, 2014). It provides high-quality food and personalized services.