Hai Di Lao Case Study

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Introduction Hai Di Lao was founded in 1994 by Zhang Yong with a starting capital of RMB 10,000, the organization’s culture started from Zhang Yong’s personal value of kindness, (Marquis, 2014). The company today has owned more than 130 restaurants in China and a total of 7 in South Korea, Japan, Taiwan and Singapore with a total of approximately 20,000 staff. The company serves Sichuan style hotpot while blending other style of hot pot, the company top priority is customer satisfaction hence providing top notch service together with the freshest food to the customers. The company has earned many notable rewards in China and has also been voted as the most famous hotpot restaurant. Based on his growing empire of 137 restaurant the company…show more content…
Business strategy 1: Differentiation Strategy Differentiation strategy is a strategy used by the firm that seek to develop unique product or service which stands out among the competitors that customers are willing to pay premium price for a product or service (Porter, 1985). Hence the uniqueness in service and taste of Hai Di Lao has gained massive popularity in Singapore and has a strong customer loyalty that customer are willing to pay premium price for. Thus the advantages of differentiation strategy is that its uniqueness takes a longer time for competitors to replicate and thus would likely lead to more competitive advantage among competitors. According to Banker et al (2014), “firms adopting the differentiation strategy achieve a competitive advantage by investing in developing products or services that offer unique qualities desirable to customers which allow the firm to command a price premium”. This is true and has proven to be effective, its service is beyond imaginations as its service exceed its customer expectations for example while customers are waiting in a queue, Hai Di Lao invested heavily in its waiting areas such

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