Discovery Projects (individual)
Name: Sin Lee Ki, Angela
Main Resources and Capabilities
Strength of the Internal Environment &
Effectiveness of the Competitive Strategy
Arome Bakery is one of the famous bakery brands in Hong Kong. It is founded in 1985 as a Japanese style bakery, by now there are over 50 shops in Hong Kong located in stores ranging from MTR stations to shopping malls. In 2008, it was acquired by the Hong Kong’s largest food and beverage corporation, Maxim’s Catering.
This report focuses on the Arome Bakery in the lane in Hang Hau, Hong Kong. Observations and internal environment analysis on Arome Bakery’s main resources and capabilities and competitive strategies would firstly be made, followed by the analysis of target customers and the strength of the internal environment and effectiveness of its competitive strategies.
Main resources and capabilities
Arome Bakery has a unique business model. It core concept is to provide high quality breads and cakes with affordable price. Arome Bakery emphasizes it is a Hong Kong based Japanese style chain bakery, which differentiate from other Hong Kong based bakery. Arome Bakery also has three fundamental success elements involved in business: Capable of tracking the customers’ preference, extensive variety of products very season and heavy investment in communication and information technology.
Location in the mall
The store locates at the first floor of no. 143 of the mall, which is the concentration of the shopping mall. This is a strong distribution channel supporting high and constant flow of the population distribution. With these benefits, customers’ attention can easily be grasped and attract them to the store.
Accepting different payment methods ranging from cash, octopus card, EPS, VISA, MasterCard to gift vouchers of different credit, Arome Bakery has enhanced their customers’ convenience to a great extent for purchasing their products. Not only does Arome Bakery provide numerous payment methods, an online version of cakes’ catalogue with stated price is available on their website to allow customers to choose and have better understandings of the cakes for which they could purchase from shops. In addition, online purchase and delivery service are possible. After the confirmation of order and proper payment, chosen cakes would be available for customers. These user-friendly approaches enable customers to have their cakes purchased or ordered online but not have to access to the shop directly. Product/ Service offering
There are mainly four product lines in Zara – woman, man, TRF and kids. Its products include accessories, bags, shoe wears and clothes for each line. The qualities of products for the woman and man sections are relatively higher, thus they are priced higher than the TRF and kids sections comparatively. There are also areas in each product line which display discounted products, and they are mostly goods from the previous season and those that are running out of sizes or stocks. Besides, for each product line, there are around 3 to 4 staffs responsible for each section such as the fitting rooms and the T-shirt section, as well as around 4 staffs working in each of the 2 cashier counters respectively. Customers can get immediate response for any queries.
Décor of the shop
The entrance of Zara in New Town Plaza indicates a high level of publicity and openness as it shows the full transparency of the store to provide a direct vision of the store and attract customers. There are also some display models placed around the store showing all sorts of seasonal clothing and accessories, which are updated regularly. This can help to...
References: 1. Jim Riley, 23 September 2012, Competitive Advantage
2. Market Entry Strategy: Case Study of Zara Internationalization in China
3. Zara Official Website
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