A Case Study Of Xianglongzhuazhua Company's Value Innovation On The Perspective Of Blue Ocean Strategy

Under the background of the Dual Initiative,various new industries,new models and new formats have emerged,effectively inspiring social activities,releasing a huge creativity,and has become a bright spot in economic development.This situation is particularly evident in catering enterprises.Among them,the store taking sales of snacks as the main business mode has the fastest growth year-on-year.Snacks as an important component for the Chinese catering industry has activated the Chinese economy and solved some employment problems.At the same time,it has opened up many families and individuals to start a business and become rich,which will contribute to the social stability.Sichuan Xianglongzhuazhua Catering Co.,Ltd.is a company founded and rapidly growing under the background of the Dual Initiative.Its founders started their business with a small store of 10 square meters.It is worthwhile to explore the core factors why the company could be established,survive,makes profits and develop rapidly in the fierce catering competition in Sichuan province.These factors will be of reference for new ventures,while it is more necessary to explore how to maintain the sustainable competitive advantage of the company so as to create a real Blue Ocean under the background of the relatively low industry barrier and a definite appearing of imitators in very short time as the company encountered problems which are conflicting with its corporation value demands during its rapid development such as failing to fully implement the company's standardization of the franchisees,or chasing short-term interests.Based on real enterprise cases,by reviewing the strategic evolution path and describing various typical phenomenon in the process of rapid development of Sichuan Xianglongzhuazhua Catering Company,this paper make it clear that,on the one hand,the company positions itself precisely as “a leading brand of hot brine snacks”,and has established a direct sale +franchise business model.The company is exploring the "blue ocean" road of maintaining product differentiation while trying to reduce costs.The key to its rapid development and creation of Blue Ocean is to generate value innovation and follow the reasonable sequence of creation of Blue Ocean.On the other hand,it should still try to find a value curve to maintain continuous competitive advantage.Based on 4C marketing theory,this paper draws the current value curve of Xianglongzhuazhua Catering Company from the perspective of consumers,analyzes its existing problems,and presents the strategic overall situation that Xianglongzhuazhua Catering Company should have in the future through the industrial layout.Finally,according to the theory of Blue Ocean strategy sustainability and combining the industry characteristics of Xianglongzhuazhua Catering Company,the author found the three propositions of coordinating value,profit and personnel,so as to strengthen the strategic coordination barriers of the enterprise and create the real blue ocean countermeasures.Based on the vision of blue ocean strategy,this paper focuses on how such catering enterprises as Xianglongzhuazhua Catering Company can find sustainable competitive advantages through value innovation to create a Blue Ocean in the case of low industrial barriers,and meanwhile provides reference significance for new enterprises or small and medium-sized enterprises to create a Blue Ocean.