Comparative Analysis of 2 Businesses of Similar Industry in Different Geographical Location

Group Members: Pui Chun Shian ( 0323470 ) Brandon Liaw ( 0323467)

Loon Jing Wei (0322074) Dixon Kee ( 0323944 )

Cryslyn Tan ( 0324249 ) Ching Pei Woon ( 0323842 )

Lau Hui Ming ( 0323827 )

CONTENT• What is Hainanese Chicken Rice? • Brief Description of the Business -Singapore Chicken Rice -Prosperity Bowl Restaurant • Similarities & differences• Comparative• Recommendation• Conclusion • Reference

HISTORY OF CHICKEN RICE

What is it?The Hainanese chicken rice is a dish that

consists of succulent steamed white chicken that is cut into bite-size pieces and served on fragrant rice with some light soy sauce

Origin1. Adapted from

early Chinese immigrants from Hainan Island, off the

southern coast of China2. Locals call it Wenchang

chicken3. Evolved through the Hainanese immigrants in the region and gained from local

influences such as the Cantonese

Brief description of the both business

SINGAPORE CHICKEN RICE

Main headquarters:Lot 7488-7489, Ground Floor.

Block 16, Taman Timberland, 3rd Mile,93200, Kuching, Sarawak

About the founders:

1. 3 founders 2. Opened the first shop, at Jalan

Song Thian Cheok, in 19873. Started due to popular

demand of chicken rice

Dishes sold:

1. Chicken Rice2. Variety of noodle and rice

dishes3. Side dishes

1. One of the largest chicken rice industry in East-

Malaysia.2. Currently has 52 branches

inclusive of 12 franchises all around East- Malaysia.

Exterior

Chicken Rice

Interior

Side dishes

PROSPERITY BOWL RESTAURANT

About Mr.Khoo:

1. He is the founder.2. He has the passion for

cooking.3. He did not have much capital

to start the business until 2006.

4. Opened his one and only shop in 2006.

Location:No.19, Jalan SS2/30, 47300,

Petaling Jaya, Selangor

Dishes sold:

1. Chicken Rice2. ‘Kueh Tiaw’ soup

3. Pork ball soup4. Fried beansprouts

1. GST is not included2. Opens daily from 7am-9pm3. Peak hours are during lunch

and dinner

Exterior Interior

Chicken Rice Side dishe

SIMILARITIES AND DIFFERENCES BETWEEN BOTH SHOPS

Prosperity Bowl Restaurant Similarities Singapore Chicken Rice

Reasonable and affordable Prices Reasonable and affordable

Advertised using newspapers Advertising Media Advertised using newspapers

High Shop cleanliness High

Chicken Rice Main product Chicken Rice

Prosperity Bowl Restaurant

Differences Singapore Chicken Rice

One Number of founders Three

Selangor Location Kuching

1 Number of shops 52

The founder has a passion for cooking

What prompted them to start the business?

At that period of time, there was a

recession so starting a business

was more profitable than working as an

employer

5 workers Employees per shop 10 workers

Monday to Sunday

7.00am-9.00pm

Business Hour Monday to Sunday

10.00am-10.00pm

- Annual Revenue Approximately RM1.8 mil

More than 100 customers per day

Number of Customers More than 200 customers per day

Opening more branches around

Selangor

Future Plan They want to go international

No Halal Yes

Comparative between Singapore Chicken Rice and Prosperity Bowl

Restaurant

SINGAPORE CHICKEN RICE • Economy is in a recession, customer prefer to save cost. • Sugarban is their biggest competitor - Because they have the same equivalent standard of their operation- Specialized in selling fried chicken- Also sells side dishes- Is one of the famous fast food restaurant in Kuching.• To compete with their competitors - Lower down their operation cost, that is to reduce unnecessary manpower.- Training and improving their staff productivity to improve their service

and food quality.• Set their gross profit 50% and above.

• Provides more choices of dishes in Malaysia - Vietnamese, Indonesia and Thai food.- Can be found in one of their most recent development which is the

Singapore Food Street.• Nature of the market - Very oligopoly due to the food types sold. - There are a variety of foods with different kinds of styles such as oriental

and western.- The proximity of the locals to the shop plays an important role to regulate

their routine there as a lunch and dinner spot.

PROSPERITY BOWL RESTAURANT

• Kar Heong is the only competitor of Prosperity Bowl Restaurant.- Has 3 branches located in ss14, ss4 and Setia Alam- Sells mainly chicken rice, kueh tiaw soup and pork balls• Didn’t care about competitions- What matters to him is the quality of his food- Was already interested in the food industry so he is very passionate about

his cooking- Managed to create his own recipe by using organic chickens - Also stew his chicken soup for at least 2 hours a day before serving- By doing so, he can maintained or improve his food quality which his

business will then gain more loyal customers

• Would not advertise his business with any cost only if it’s free• In 2013, The Star Newspaper titled Prosperity Bowl Restaurant as the best

chicken rice in Klang Valley. - This was a free advertisment offered by the newspaper company• According to Mr.Khoo, his loyal customers would provide advertisement

for him if he maintain his quality of his food- As the saying goes, success is the result of perfection, hard work, learning

from failure, loyalty, and persistence • The only action that he would take to compete with his competitors is to

expand his business by opening the second branch- Most probably would open end of the year 2016- Would be operated by a family member of his• Nature of his market is actually perfect competition- Because its barrier to entry is weak - Has only one branch

PROSPERITY BOWL RESTAURANT NAME OF SHOP SINGAPORE CHICKEN RICE

Located at SS2. The rental expense in that any area in Selangor would actually reduce the revenue of the business, which then cause problems in earning more profit.

The parking space is also limited at that location. It is usually very packed with cars and it may cause jams and inconvenience for other especially during peak hours.

Obstacles faced by new businesses who wish to enter their markets today? Are they easy or difficult to overcome?

As stated by the interviewee, chicken rice is a common and famous food in East Malaysia. There are many other chicken rice business in Kuching which will increase the competition rates, which in turn reduces the profitability of the business.

Since the business has franchises, it is hard to keep the reputation of the business intact. To maintain the reputation, more expenses will be required to provide trainings and other services which will also reduce the amount of profit earned.

COMPARATIVE ANALYSIS SUMMARY TABLE

COMPETITIVE TRAITS PROSPERITY BOWL RESTAURANT

SINGAPORE CHICKEN RICE ( KUCHING)

1. Number of competitors 1 Less than 5 2.Barrier to Entry Weak barrier to

entry

Entering the market of foods and bevarages in Subang Jaya is easy due to a few factors

1. Subang Jaya is a busy city.

2. Chicken rice is a common food.

Storing barrier to entry

Entering the market of foods and beverages in Kuching is difficult

due to few factors: .

1. Kuching is a small city2. Many variety of foods.

COMPETITIVE TRAITS PROSPERITY BOWL RESTAURANT

SINGAPORE CHICKEN RICE ( KUCHING )

3. Other Characteristics Prosperity Bowl Restaurant focus on the originality of the chicken rice recipe. Also sells Kueh Tiaw Soup and other side dishes.

Singapore Chicken Rice has a variety of dishes with a fusion of both oriental and western style. For example, chicken rice, Cantonese ‘Kuew Tiaw’ , Sandwiches, Chicken chop rice and others.

4. Verdict Perfect Competition

Oligopoly

CONCLUSION

Based on our analysis, Singapore Chicken Rice is more successful.1. Has 52 branches compared to Prosperity Bowl Restaurant which has only

1 branch.2. Has expanded throughout East Malaysia while Prosperity Bowl

Restaurant has only one branch.3. It has franchising whereas Prosperity Bowl does not.4. SCR are pursuing to expand until it is internationally recognized while

Prosperity Bowl Restaurant recently only decides to open the second branch.

5. More customers since it has branches all around the East Malaysia.

RECOMMENDATIONSSINGAPORE CHICKEN RICE PROSPERITY BOWL RESTAURANT

1. Make sure food quality is at the most optimum state

2. Make sure the waiters are attentive

1. They should make more ventilation2. It should have the air conditioning

service for the customers to have their meal more comfortably.

3. The owner of Prosperity Bowl Restaurant should have the mind to expand his business.

4. Prosperity Bowl Restaurant should focus on more advertising strategies to promote his dishes.

REFERENCESProsperity Bowl Restaurant:-http://my.openrice.com/klangvalley/restaurant/restoran-prosperity-bowl-petaling-jaya-north/224983-http://constance-ant.com/2013/12/klang-valley-lunchy-restoran-prosperity-bowl-ss2/-http://www.thestar.com.my/news/community/2014/07/05/newbie-wins-best-chicken-rice-twoyearold-eatery-proves-to-be-fast-favourite-among-foodies/http://www.hungrygowhere.my/dining-guide/best-picks/12-best-chicken-rice-in-klang-valley-*aid-965b3101/

Singapore Chicken Rice-http://allrecipes.com/recipe/70667/singapore-chicken-rice/-http://abshost.com/scr/the-business.phphttps://en.wikipedia.org/wiki/SCR_(restaurant)http://en.yelp.my/biz/singapore-chicken-rice-kuching-3https://www.facebook.com/SCRCorporation