A SWOT Analysis is actually a tool that identifies the strengths, weaknesses, opportunities and threats of the organization. This basic, easy model assesses what a company can and cannot do as well as its potential chances and dangers.
The method from the SWOT analysis is to take the information by an environmental analysis and separate this into inside (strengths and weaknesses) and external issues (opportunities and threats). Once it is completed, SWOT research determines what may support the firm in accomplishing its aims, and what obstacles should be overcome or minimized to offer the desired outcomes. Strengths 2. Brand Approach and placing.
The Group’s branding approach focuses on company differentiation to cater a wide range of customers. The most up-to-date brand of the group, SUBU focuses on ground breaking healthy food intended for younger and more fashionable office workers, the LAN Club is a luxury company that targets the upper-class dining part of successful businesspeople aged over forty five years, and South Beauty, the Group’s flagship manufacturer that focuses on upper-middle school segment of businesspeople older from 30 to forty-five years. No competitor in the Chinese cafe market offers such company format.
The majority of them operate their one brands without clear brand positioning so their manufacturer image is pretty inferior to the Group’s. 5. Consistent manufacturer identities. The business has built constant brand details by introducing some outdoor and produce advertisement. The business also explore cooperation with certain worldwide airlines, including Air Portugal and KLM Royal Nederlander airlines, to supply business travellers flying among China and Europe with South Beauty-branded Chinese dishes. * Creativity.
The company is regarded as an innovative firm, with 55 percent gross annual growth. The South Splendor restaurant as well introduced a lot of innovations and improvements to find traditional Sichuan food, not only in terms of recent raw materials, yet also the process of preparing the bathroom and the buyer experience. The Group created a range of innovations to find Sichuan cuisine but likewise added particular Cantonese dishes and other flavours to the menu.
One of the group’s biggest and most committed innovations may be the combination of Chinese language and American cuisine that breaks with tradition and creates first new flavours. It is the first Chinese cafe to offer Chinese food in a western style, and the initial to mix foodstuff presentation with artistic opinions. * Differentiation in delicacies. Some of the elements that make the Group’s food different from other folks are the tight requirements added to raw ingredients, the development on traditional cuisine, the exacting standards placed on a dish’s nutritional value, and the solid emphasis on the visual appeal of each and every dish.
5. Location and Pricing. The Group’s restaurants are located in top-notch office buildings in key metropolitan areas. Meals are expensively costed to cover costs, but because of the brand’s reputation and photo, consumers are willing to pay the high prices.
This combination of expensive location and high charges were attractive developing the upper-middle course brand picture. * Home decoration and ambience. Every single South Natural beauty restaurant had a different interior decoration, designed by well-known artists during a call. It is Zhang Lan’s belief that people will need to come for the restaurant not merely for the meals but also for the ambience. 2. IT applications.
Advanced THIS applications enhanced the image in the restaurant and improve performance. For example , the Group built its own CRM system to record customer details and work with that info to provide tailor-made services and make advertising communications. These IT applications give the Group an edge because they are quite impressive for the standard Chinese catering industry as most restaurants continue to be committed to their very own old methods of operating their businesses. * People supervision. Zhang Lang was a firm believer that the dedicated labor force could defeat challenges pertaining to financial capital and marketplace potential, hence the Group strove to apply performance management methods with regard to the management team.
It also worked with a talking to firm to design a new people management system to motivate employees. The group also initiated a considerable training program intended for the staff. 5. Synergies.
The company’s central management to achieve synergies offers caused the South Magnificence Group to formulate functional administration expertise at its head office with a view to complementing the management of its restaurants, all of this helps come up with ideas ways to distinguish the Group from its competition to capture market share. * Growth. South Magnificence Group is not only looking to grow further in China lace is also trying to find an international existence. * Correct target group. Because of the thriving economy in China, the business meals acquired more potential than the various other segments because they could absorb bigger prices.
These types of business-people weren’t satisfied with simple eating and drinking- that they required more in terms of the restaurant’s environment or atmosphere. These businesspeople are the focus on consumers with the South Magnificence Group. 5. Leader inside the niche market of high-end Oriental dinner: Southern region Beauty’s share was a lot more than 7% Weaknesses 5. Ranking inside the high-end Chinese language dinner part. Among the top 100 restaurant companies in Cina in 2007, 10 had been in this portion, with the head being Shanghai in china Jingiang (ranked 4) and Beijing Shunfeng (Ranked 18). South Beauty’s ranking was 72.
2. Poor diversity on types of cuisine. The high-ranked competitors centered on various Oriental cuisines, yet South Magnificence only dedicated to Sichuan cuisine, so it could not compete with these restaurants when it comes to cuisine. 5. Fake Eating places and failure to protect the brand.
The most crucial issue to get South Natural beauty was that of restaurants professing to be South Beauty franchisees. In 2006, there were at least sixteen fake restaurants in urban centers South Splendor has not penetrated. The imposters used precisely the same Chinese identity as South Beauty with one or two additional Chinese heroes to attract blameless customers and provided associated with poor service and atmosphere. The unsatisfied customers nevertheless , complained for the real To the south Beauty.
This hurts the brand name image and reputation of the Group. 2. Authenticity of Sichuan meals. In towns with bigger incomes (where South Beauty’s target buyers are mainly located), consumers got more different types of restaurants to make selections based on word of mouth. 63 percent of consumers obtained restaurant information by word-of-mouth advertising, so when a restaurant review website state that Southern region Beauty advertised Refined or Improved Sichuan Food, consist of places, such as Chengdu, the birth host to Sichuan meals, customers had been of the judgment that the Sichuan food offered by South Splendor was not while spicy factory-like cuisine.
Various other did not look at South Splendor as a authentic Sichuan foodstuff restaurant. If consumers were hoping to find authentic Sichuan food, following hearing these kinds of opinions on the street, they were more likely to pick another restaurant. 5. Inability to perform things within a standardized approach to cut down costs and improve productivity.
The supervision team did not halt their efforts to boost the Group’s operational effectiveness through standardization, which was likewise the foundation to get scaling up. * Minimal market share in the Chinese Restaurant Market. Industry share in South Splendor in the total industry was less than zero. 1 percent. Opportunities * Expansion. The Group is trying to expand the operations in the existing 20 restaurants in China to a total of 100 globally (35 in China and 65 inside the international market) over the next three years.
5. Standardization. The standardization with the process of organizing the dishes can be described as big possibility to increase efficiency and top quality. * Access into new businesses. The Group wants to diversify into business of partially cooked frosty foods for retail outlets and airline catering. The Group’s market share inside the Chinese supper category was an estimated a couple of percent in 2006. There is wonderful to area to increase this market share.
2. Ability to commit heavily in various elements, interior decorating being one of these. No competition is able to make investments so intensely. * Food diversity. Southern region Beauty simply offers Sichuan cuisine. While a typical Chinese restaurant offers one or two repas, expanding in more than two different repas could supply the Group a source of differentiation. * Getting an international brand.
According to Zhang Local area network () Now is the time to expand. We have met success in Chinese suppliers, and now we wish to build an international manufacturer, which will have got a existence in Ny, Paris, Greater london, Milan, Geneva, Tokyo and also other important international cities of the world. it truly is projected that the Group may have 30 restaurants in short term and 75 outlets in the next three years, that 35 restaurants would be positioned in China and 65 in the international marketplace in cooperation with proper partners in Tokyo, Nyc, and other metropolitan areas.
Threats * Some competitors of Southern region Beauty have been able to defeat the hurdle of creation and make Chinese dishes in a standardized way faster than To the south Beauty, thus they are able to decrease costs and realize larger profits. 2. Belief amongst certain consumers that the Sichuan food that South Beauty serves is not authentic because this might cause consumers to look for more authentic options in competitors. 5. Fake To the south Beauty restaurants.
They make the brand name look poor and downsize the brand’s reputation and positioning. 2. With this sort of large ideas for expansion, in the event the capital required is certainly not raised, this could pose a threat not only for foreseeable future expansion also for future development in China. * Detailed efficiency that should improve: the management group did not cease their efforts to improve the Group’s functional efficiency through standardization, which was also the building blocks for climbing up. Every single South Natural beauty restaurant transported 380 products on the key menu.
Unprocessed trash depended on local suppliers, as well as the quality of each dish counted on the experience of the gourmet. Although there was obviously a team with three main chefs at the head office to develop new meals and control the quality, the process of standardization remains to be in its beginning phase. In the event that standardization is usually not achieved soon, the Group may lose a few of its business to opponents that do accomplish it soon because they shall be able to decrease costs which will translate into cheaper prices.