Little Sheep Group Case Study

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Little Sheep Group
Little Sheep Group is employing a differentiation business strategy by offering a hot-pot recipe that is unique and untraditional. Their mission to build a global dining brand is supported by goals for quality, standardization and goodwill among customers. To this point, the key success factors (KSF) have been: •A systematic operation philosophy

Patent protected, secret soup recipe
People-oriented corporate culture
Standardization & experience in senior management
Attentiveness to attraction & retention of customers
Analysis of Strategic Approaches
Little Sheep expanded rapidly by employing franchising, export and joint venture strategies. These have allowed Little Sheep to break into foreign markets with minimal financial and resource risk. As discovered through trial-and-error, these strategies combined with a global competitive strategy have serious drawbacks to their KSF’s. The costs of shipping product to foreign markets is high, the ability to maintain consistent standard quality is low and a systematic operation is challenging as local market differences had little consideration. By thinking and acting globally, Little Sheep doubled or tripled their costs and are unable to address local needs precisely affecting their ability to attract and retain customers. Recommendation

Little Sheep has successfully developed a global dining brand, eliminated standardization issues by abolishing various franchises and became financially stable through joint ventures and alliances with other companies; therefore, in pursuit of continuing global expansion in a way that allows control over quality of product and service across foreign markets and considers local variations, Little Sheep should: 1)Seek competitive advantage through a transnational (think global, act local) approach 2)Employ a conjunction of greenfield venture and joint venture entry strategies. Little Sheep has developed to the point that they have the ability to...
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