A Diagonal Analysis Of Restaurant H In Chengdu

This paper focuses on the problems Restaurant H is currently facing, the author endeavors to analyze the industry environment, trace the sources of the problem, and propose strategic amendment suggestions after employing strategic analysis tools. During the period between 2000 and 2008, the author deeply investigated every department of firm H and found:on the surface, the problems were reflected in the inconsistence of the firm's high reputation with its low market share and in the failure of its high grade hot pot restaurants to survive in the non-local market; from the aspect of the whole industry, impacted by the debate on the adverse health effect of hot pot, space for further development lessened dramatically. A bunch of evidences have shown that the firm is at stake at present. It is imperative, therefore, to seek for a strategy with bright prospect.On the three problems addressed above, the author analyzes the environment of the whole industry. In order to provide suggestions, the author focuses on applying the theory and methodology of management to trace the sources of these three problems. ProblemⅠ:by using brand, core competence and the Porters five forces theory and tools, the author reveals that the firm's core competence was explored insufficiently and mismatched. In addition, the competition environment was not well analyzed, thereby leading to the decrease of market shares. Thus it is suggested that the firm need to clearly recognize the pyramid of its brands, sufficiently utilize its core competence and execute the appropriate marketing strategies to enhance market share under present competition environment. ProblemⅡ:employing competitor classification and identification methods, product life cycle theory and target customer group analysis, the author find that the reason could be that the firm did not pay enough attention to important factors in macro environment and failed to cope with the intensive competition outsider the local province. It is suggested, therefore, when selecting location outside the local province, the firm should highly concern the key factors in macro environment, identify main competitors and execute corresponding marketing strategies on the basis of product life cycle and target customer groups. ProblemⅢ:the underlying reason rests on the fact that classical hot pot emphasizes the oil and the taste and customers are not familiar with related knowledge. Product improvements, feature services targeting at different customer groups are necessary to amend the subordinate position of the hot pot. Among other things, according to the analysis, the author offers amendment suggestions to the overall strategies, hoping that the firm can overcome its current bottle-neck in development and succeed eventually.