Hong Kong is known as being a very multinational and diversified city not only in Asia but also in the world. Not only is Hong Kong a paradise from a financial perspective, but it is also a great country in terms of the standard of living.
As Hong Kong has a very diversified culture and a mix of various ethnicities, there isn’t a lack of food options and results suggest that 1 to 4 Hong Kong respondents prefer to dine out and prefer to spend up to HKD$1500 a month. Which looking at the results creates the ideal opportunity in opening a relatively new fast food concept, which provides a different cuisine from the current trends in a fast food format into the Hong Kong market.
1. Established a huge brand awareness and loyalty. Tremendous amounts of consumer satisfaction.| 1. Local consumer tastes need to be adapted towards Mexican cuisine.| 2. High Quality products, at relatively reasonable prices.| 2. Property prices are relatively expensive, high operating costs.| 3. Quite new concept could create attention and buzz. | 3. Not a very health conscious menu could be unappealing to target users.| 4. Sole Mexican cuisine fast food concept chain.| |
Opportunities | Threats|
1. Introduce Home/Office delivery services.| 1. Existing well established fast food chains, e.g. McDonalds, KFC, Subway, Café de Coral etc.| 2. Experiment with local needs/taste, incorporate local flavors and delicacies. | 2. May not be appreciated by the Hong Kong public.| 3. Possibility to develop drive through, to create ease of accessibility for consumers. | 3. Existing Mexican restaurants that have established brand loyalty amongst Hong Kong customers.| 4. Establish chains where students and working people can easily access. E.g. office buildings, university campuses, shopping malls etc.| |
The political condition in Hong Kong is relatively stable, hence introducing an American based fast food chain, wont have any impacts or create any problems from a political aspect. As Hong Kong isn’t facing any political distress or disturbances domestically or internationally.
There are several economical impacts that will incur as Taco Bell starts its operations in Hong Kong. First of all, starting a new fast food chain would create domestic employment, as jobs will be opened up towards the local citizens. Furthermore everyone earning will then pay taxes that will result in an increase in government revenue as the company gradually starts to increase its operations within Hong Kong premises.
The social factor also goes on to play a huge role when establishing a new fast food chain, as this acts upon the consumers’ values and beliefs. Many people are known to be relatively health conscious, hence therefore an aspect that Taco Bell will have to consider is the quality and the healthiness of the food that will be served to the local consumers. If the quality of food is compromised it could then impact the demand for the food and could hinder the company growth.
Furthermore besides the food element, Taco Bell will also have to consider its Corporate Social Responsibility factors of treating their employees in an adequate manner and rewarding them with what they deserve, and also the environment factor and to maintain the clean environment Hong Kong stresses, and to reduce waste and place heavy emphasis on packaging their food with recyclable and biodegradable materials.
Technology is shown to be developing and rapidly changing all around the world. Hong Kong is known to be a very technology based country, where majority of the business is done all over technology, hence therefore there are some technological factors to which Taco Bell could adapt to in order to bring positive impacts to the chain. One method would be to adapt company websites on...