Tsui Wah
Tsui Wah’s Future in Hong Kong
Introduction
From Tsui Wah’s 2013 annual report, it has just implemented the service of “Tsui Wah Delivery”. This movement reflects that it intends to provide more variety in addition to its main stream of business. However, what can Tsui Wah still undertake in future to make more diversification? In the following parts, a SWOT analysis is prepared by reference to the PESTEL model, Porter’s Five Forces Competition Framework and Resource-based View model. Based on the analysis, several recommendations are also suggested for Tsui Wah to incorporate more variety into its business. Finally, a brief conclusion is drawn.
SWOT Analysis
1. Opportunities
1.1. Increasing Mainland Visitors
Due to the introduction of “Individual Visit Scheme” in 2003, the number of Mainland visitors increases significantly year by year. According to a report released by Savills (Hong Kong) Limited on hospitality industry in Hong Kong, the number of Mainland visitors in 2012 soared by 543% compared with that in 2004. Visitors normally want to try some indigenous foods. Tsui Wah is just where they want to go because it is one of the restaurants representing Hong Kong’s traditional foods.
1.2. Prevalent Trend of Dining Out
Nowadays, working women is a prevalent phenomenon. A lot of families would choose dining out instead of cooking themselves. In a survey conducted by the Public Opinion Programme of The University of Hong Kong on Hong Kong people’s eating habits, it is revealed that on average an interviewee dines out 5.1 times per week. This is really conducive to the catering industry as a whole.
2. Threats
2.1. Tough Industrial Environment
In the catering industry, there are a lot of substitutes such as Café de Coral, Fairwood and Maxim's MX. People can easily switch to any restaurant. With regards to rivalry, in spite of keen competition, competitors are competing on non-price dimensions. Each restaurant is slightly different from
Introduction
From Tsui Wah’s 2013 annual report, it has just implemented the service of “Tsui Wah Delivery”. This movement reflects that it intends to provide more variety in addition to its main stream of business. However, what can Tsui Wah still undertake in future to make more diversification? In the following parts, a SWOT analysis is prepared by reference to the PESTEL model, Porter’s Five Forces Competition Framework and Resource-based View model. Based on the analysis, several recommendations are also suggested for Tsui Wah to incorporate more variety into its business. Finally, a brief conclusion is drawn.
SWOT Analysis
1. Opportunities
1.1. Increasing Mainland Visitors
Due to the introduction of “Individual Visit Scheme” in 2003, the number of Mainland visitors increases significantly year by year. According to a report released by Savills (Hong Kong) Limited on hospitality industry in Hong Kong, the number of Mainland visitors in 2012 soared by 543% compared with that in 2004. Visitors normally want to try some indigenous foods. Tsui Wah is just where they want to go because it is one of the restaurants representing Hong Kong’s traditional foods.
1.2. Prevalent Trend of Dining Out
Nowadays, working women is a prevalent phenomenon. A lot of families would choose dining out instead of cooking themselves. In a survey conducted by the Public Opinion Programme of The University of Hong Kong on Hong Kong people’s eating habits, it is revealed that on average an interviewee dines out 5.1 times per week. This is really conducive to the catering industry as a whole.
2. Threats
2.1. Tough Industrial Environment
In the catering industry, there are a lot of substitutes such as Café de Coral, Fairwood and Maxim's MX. People can easily switch to any restaurant. With regards to rivalry, in spite of keen competition, competitors are competing on non-price dimensions. Each restaurant is slightly different from