Write a 8 page essay on Strategic Marketing Management.Download file to see previous pages... The group was founded in the year 1968 and its first restaurant was opened up in the district of Causeway

Write a 8 page essay on Strategic Marketing Management.

The group was founded in the year 1968 and its first restaurant was opened up in the district of Causeway Bay of Hong Kong in the year 1969. At present, the group has over 540 retail outlets all over the world with its several brands. This paper will deal with the study and analysis of the fast food industry in Hong Kong and accordingly will penetrate into one of the strategic business units of Cafe de Coral. The strategic business units of Cafe de Coral consist of fast food, specialty restaurants, institutional catering, food processing and distribution and overseas. In this research paper, the fast food unit of Cafe de Coral at Hong Kong will be taken up for evaluation. With respect to the analysis of the industry and strategic business unit of Cafe de Coral, specific strategic direction and relevant execution explanation will be provided (Cafe de Coral, 2011). 2.0 Industry Competition The fast food industry competitiveness in Hong Kong will be discussed in this section with reference to the Porter’s Five Forces Model. The forces of the model consist of barriers to entry into the Hong Kong’s fast food industry, bargaining power of the buyers in the industry, bargaining power of the suppliers, threat of the substitutes in the industry and the rivalry among the existing players in the industry. 2.1 Threats of New Entrants The threats of the new entrants have to be described in terms of a few aspects for evaluating the factors totally. The aspects are the economies of scale, capital requirements, product differentiation and cost disadvantages. Taking the advantage of the economies of scale, the new entrants interested in the class of limited service restaurants can seek certain favour to economies of scale. But these advantages get weakened by the alleviation of founding a restaurant that provides quick service. Differentiating the products or the fast food being provided is a difficult task in the industry, but for private start-ups this is not a difficulty and thus not a barrier to entry. The requirements of initial capital might repress the development of nation. The cost disadvantages stem from the fact that the established companies in the fast food industry already enjoy the advantage of innovative technology, favourable sites, access to raw materials, experience and government subsidies. There is stiff competition in the Hong Kong fast food industry due to the presence of an enormous number of fast food chains and restaurants. In spite of all these facts, the strategic business unit of Cafe de Coral perceives a high future growth as the receipts of food and beverages have showed upward trend during the past years. From all these analysis, it can be inferred that the entry barriers in the Hong Kong fast food industry is not high and according to the current market condition, the SBU expects growth (ACCA, 2010). 2.2 Bargaining Power of Buyers The Hong Kong fast food industry is characterised by several individual customers who place pretty small orders.