Strategic Marketing Management Essay Example | Topics and Well Written Essays - 2000 words

Strategic Marketing Management - Essay ExampleThe group was founded in the socio-economic class 1968 and its first restaurant was opened up in the district of Causeway Bay of Hong Kong in the division 1969. At present, the group has over 540 retail outlets all over the world with its several brands. This paper bequeath deal with the study and analysis of the loyal food patience in Hong Kong and accordingly pass on get over into one of the strategic business social units of Cafe de precious coral. The strategic business units of Cafe de Coral consist of prompt food, specialty restaurants, institutional catering, food processing and distribution and overseas. In this research paper, the fast food unit of Cafe de Coral at Hong Kong will be taken up for evaluation. With respect to the analysis of the diligence and strategic business unit of Cafe de Coral, specific strategic direction and relevant execution translation will be provided (Cafe de Coral, 2011). 2.0 Industry Compet ition The fast food industry competitiveness in Hong Kong will be discussed in this section with reference to the Porters Five Forces Model. The forces of the model consist of barriers to ledger entry into the Hong Kongs fast food industry, bargaining power of the buyers in the industry, bargaining power of the suppliers, threat of the substitutes in the industry and the rivalry among the existing players in the industry. 2.1 Threats of New Entrants The threats of the new entrants have to be described in terms of a few aspects for evaluating the factors totally. The aspects are the economies of scale, capital requirements, product differentiation and cost dis usefulnesss. Taking the advantage of the economies of scale, the new entrants interested in the class of limited service restaurants can seek certain privilege to economies of scale. But these advantages get weakened by the alleviation of founding a restaurant that provides quick service. Differentiating the products or the f ast food being provided is a difficult task in the industry, but for private start-ups this is non a difficulty and thus not a barrier to entry. The requirements of initial capital might avoid the development of nation. The cost disadvantages stem from the fact that the established companies in the fast food industry already enjoy the advantage of innovative technology, favourable sites, access to raw materials, experience and government subsidies. There is askew competition in the Hong Kong fast food industry due to the presence of an enormous number of fast food chains and restaurants. In spite of all these facts, the strategic business unit of Cafe de Coral perceives a high future growth as the receipts of food and beverages have showed upward style during the past years. From all these analysis, it can be inferred that the entry barriers in the Hong Kong fast food industry is not high and according to the current market condition, the SBU expects growth (ACCA, 2010). 2.2 Bar gaining Power of Buyers The Hong Kong fast food industry is characterised by several individual customers who place pretty small orders.