Bsp, T6.docx

(a) Analyse the strengths, opportunities, and threats to assess the strategic position of Ipoh Kopitiam.

weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational assessment model that measures what an organization can and cannot do, and its potential opportunities and threats.

SWOT analysis is a framework used to evaluate a company's competitive position by identifying its strengths,

SWOT analysis is a basic, analytical framework that assesses what an entity — usually a business, though it can be a place, industry or product — can and cannot do, for factors both internal and external. Using environmental data to evaluate the position of a company, a SWOT analysis determines what assists the firm in accomplishing its objectives, and what obstacles it must overcome or minimize to achieve desired results: where the organization is today, and where it may go.

SWOT of IPOH KOPITIAM Strengths 

Product differentiation: Ipoh Kopitiam successfully distinguishes their products in the global market by offering uniqueness and specialty of their products, in terms of innovative fusion menu that mixes western and eastern ingredients. - Provides fusion cuisine - Introduce something new to customers – Along with desire for familiarity, people carve new experience. For instance, you are biting into a classical burger, but with Asian 5 spices introduced; or enjoy the familiarity texture of grilled chicken, but with delicious Thai flavours.

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Good branding: - Creative advertising, marketing and promotion strategies. - Ways: engaged local celebrities, online discount vouchers, won culinary competition - Organised kitchen challenge competition to select talented chefs.

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Wise management: - Actively involves in CSR & embeds the culture of giving in its management. - E.g. Charity Marathon Run: employees and outsiders having chance to engage with each other. (build bonding while doing charity) - Maintain good hygiene in both personal and environment (represents an important element particularly for food & beverage industry)

Opportunities 

Vast Expansion: Well-known full service restaurant in Malaysia with: - Rapid growth through franchising - over 200 outlets nationwide - 5 oversea new ventures in Indonesia, Singapore, Australia. - It can acquire new market shares around the world with expansion globally. - Since there is limited market in one region if it only operates in Malaysia.

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Changing of Malaysian lifestyle urges the demand for dining out especially the dualincome family. - Convenience of saving time and energy in preparing meals. - Nowadays, food is consumed not only for survival, but also for higher-order purposes (convenience, health, entertainment) - Reason: Dual-income family is having o Higher purchasing power o More money to spend on dining outside o Less/no time to prepare food

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Growing economy in Malaysia - offers high growth potential - In this case, people are having jobs and thus possess higher disposable income which encourage them to spend more on outside food.

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Emerging market shares: - Gain 40% market shares in 2013. - Able to turn its internal strengths and competencies into competitive advantage. - Provide unique and high quality fusion food.

Threats 

The industry and market is saturated and fragmented with many foreign and local competitors of all sizes. - Since demand increases, more and more new entrants come into the market in order to gain market shares. - Increasing new entrants enter into the industry will raise the bargaining power of customers as well. - When customers in the market are powerful, they can determine the price paid for the sellers. This indicates that the customers may choose among the numerous restaurants which can provide similar food and beverage for lower price. - This situation will worsen off due to the intensive price war among the competitors. - Sensible pricing is essential for business; however, price wars can be disastrous and usually mean that everybody loses.

In conclusion,    

While most restaurant consumers are price-conscious, they are not only focused on consumer cost. Restaurants that are perceived as providing a higher-value offering are more likely to succeed than those that are just inexpensive. Customers have demonstrated a willingness to pay a little bit more for a meal that is significantly higher quality or has health benefits. Therefore, Ipoh Kopitiam is recommended to continue serving unique and differentiated and high quality fusion food in order to maintain existing customers and attract new market shares in both locally and globally. By providing differentiated or unique products, Ipoh Kopitiam might stand out from its competitors.