Haidilao

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[Word][Grp 4] Haidilao
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A/ INTRODUCTION 9
1. BRAND STORY 9
2. BRAND VISION 9
3. BRAND PHILOSOPHY 9
4. FEATURE SERVICES 9
5. IMPRESSIVE NUMBERS 9
B/ EXTERNAL ENVIRONMENT 10
I/ MACRO ENVIRONMENT (PESTEL) 10
1. POLITICAL 10
1.1. Government stability 10
1.2. Tax policies 10
1.3. Competition regulations 10
1.4. Trade blocs 10
2. ECONOMIC 11
2.1. GDP trends and rate of economic growth 11
2.2. Inflation Rate 11
2.3. Government Spending 11
2.4. Demand Shifts from Goods Economy to Service Economy 11
2.5. Interest rate 11
2.6. Unemployment rate 11
3. SOCIAL 11
3.1. Demographics 11
3.2. Education level 12
3.3. Attitude 12
4. TECHNOLOGICAL 12
4.1. Technological infrastructure 12
4.2. Internet penetration 12
4.3. Investment in R&D 12
5. ENVIRONMENTAL 12
5.1. Environmental regulations 12
5.2. Waste management 12
5.3. Customers’ awareness 13
5.4. Renewable technologies 13
6. LEGAL 13
6.1. Business Laws 13
6.2. Transparency in Judiciary System & Processes + Time Taken for Court Proceedings 13

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6.3. Consumer Protection Laws 13

6.4. Employment Protection Laws 13
6.5. Intellectual Property Rights Protection 14
6.6. Health & Safety Laws 14
II/ MICRO ENVIRONMENT (PORTER’S 5 FORCES) 14
1. RIVALRY AMONG COMPETING SELLERS 14
2. SUPPLIERS 15
3. BUYERS 17
4. SUBSTITUTES 19
5. NEW ENTRANTS 19
C/ INTERNAL ENVIRONMENT 20
I/ ORGANIZATIONAL CULTURE 20
1. BRAND IMAGE 20
1.1. Name <Haidilao= 20
1.2. Logo 20
1.3. Slogan 20
2. BRAND MISSION 21
2.1. Philosophy 21
2.2. Vision 21
3. CORPORATE SOCIAL RESPONSIBILITY 21
3.1. Devotion to communities 21
3.2. Bingwen library 21
3.3. <Beauty in Kindness= 22
3.4. Jianyang Tongcai Experimental School 22
II/ RESOURCES 22
1. TANGIBLE RESOURCES 22
1.1. Finance 23
1.2. Physical assets 23
2. INTANGIBLE RESOURCES 23
2.1. Technology 23
2.2. The brand 24
2.3. Customer relationship 24
3. HUMAN RESOURCES 24
3.1. Training and development 24
3.2. Employee well-being 25
III/ CAPABILITIES 25
1. VALUE CHAIN & VALUE SYSTEM 25
2. PRIMARY ACTIVITIES 25

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2.1. Inbound Logistics 26

2.2. Operations 27
2.3. Outbound Logistics 27
2.4. Marketing and Sales 28
2.5. Services 28
3. SUPPORTING ACTIVITIES 29
3.1. Firm Infrastructure 29
3.2. Human Resources Management 30
3.3. Technology Development 31
3.4. Procurement Activities at Haidilao 32
D/ SWOT ANALYSIS 32
I/ SWOT 32
1. STRENGTHS 32
2. WEAKNESSES 34
3. OPPORTUNITIES 36
4. THREATS 38
II/ SWOT STRATEGIES 40
1. SO STRATEGY 40
2. WO STRATEGY 40
3. ST STRATEGY 40
4. WT STRATEGY 41
E/ REFERENCES 41

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HAIDILAO
A/ INTRODUCTION
1. BRAND STORY
The brand Haidilao was founded in 1994. With over 20 years of development, Haidilao
International Holding Ltd. has become a world-renowned catering enterprise. (20)
2. BRAND VISION
Communication is a must in establishing trust among people and Chinese hot pot is a perfect
choice for enhancing social networking at table. Haidilao is committed to encouraging more
people to chat with each other and enjoy their food at table, and creating a kind of table culture
favored by young people around the world. (20)
3. BRAND PHILOSOPHY
We are always committed to the mission of creating happy hot pot time and spreading healthy
hot pot culture to foodies all over the world through selected products and innovative services.
As a large restaurant chain with global outreach, following the business principle of integrity,
Haidilao seeks to provide consumers with more thoughtful services and healthier, safer and
better food with more nutrition, while enhancing the stability and safety of food quality. (20)
4. FEATURE SERVICES
Taking customer experience as our top priority, we always provide innovative and pleasant
services to our customers. All the personalized services offered by our restaurants are derived
from the innovative ideas of our staff. These warm and personalized services turn every meal
into a happy experience. (20)
5. IMPRESSIVE NUMBERS
In 2021: 1,443 restaurants in total in China, Hongkong, Macao, Taiwan and other 11 countries
with more than 378 million customers. (6)

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B/ EXTERNAL ENVIRONMENT
I/ MACRO ENVIRONMENT (PESTEL)
1. POLITICAL
1.1. Government stability

- No imminent threats from terrorists and military issues in existing markets. (1)
- Political stability in existing markets: China, HongKong, Malaysia, Singapore, VietNam,
South Korea, Japan, The USA, Australia… → support business’s growth expansion. (2)
- China has good records of consistently adhering to international treaties, specifically WTO’s
regulations on Restaurant Industry. (3)
- Enhance trade relations with other countries + attract FDI → equity for business to upgrade
infrastructure + brand image. (4)
1.2. Tax policies

High domestic tax rate : <It is understood that Singapore has to pay a very low tax, no
matter whether it is personal income tax or corporate income tax, it will not exceed 20% ,
but it is different in China. It needs to pay 50% of the tax.= (5)
1.3. Competition regulations

China’s comprehensive system of competition law (came into effect on 1 August 2008) with
key rules against monopoly -> ensure fair play among competitors, monitor and regulate
import and protect rights and benefits of stakeholders. (6)
1.4. Trade blocs

China maintains 17 Free Trade Agreements (FTAs) and is implementing additional 8 FTAs
→ Business can lower resource costs, increase supply of talented labor, and benefit from
gaining advanced technology and knowledge from foreign experts. (7)

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2. ECONOMIC
2.1. GDP trends and rate of economic growth

- GDP growth rate increases signals growth in demand -> Business leverages this trend by
expanding its product range and targeting new customers (by identifying changes in
consumption patterns -> emerging value proposition).
- The Gross Domestic Product (GDP) in China was worth 17734.06 billion US dollars in
2021. GDP in China is expected to reach 16700.00 USD Billion by the end of 2022.
2.2. Inflation Rate

Impose impact on the demand of products → High inflation can cause an increase in prices
(→ lose brand loyalty and constant endeavors to manage costs.) and decrease in disposable
income (→ lower purchasing power).
2.3. Government Spending

The government of the country is running deficit budgets → Business may expose currency
depreciation risks in the medium term.
2.4. Demand Shifts from Goods Economy to Service Economy
2.5. Interest rate

Moderate interest rate helps businesses take loans for development and expansion.
2.6. Unemployment rate

Will affect purchasing power as well as cost of production. (Unemployment rate high → lower
disposable income, unqualified labor force → high cost of production → high price , work
productivity is high → employ skilled workers at competitive price).
3. SOCIAL
3.1. Demographics
Gender roles, power structure in society, portion of youngsters, birth rates…

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3.2. Education level

Indicator of quality of labor force, consumption decisions and preferences.
3.3. Attitude
Towards authority, savings, health, leisure experience…
4. TECHNOLOGICAL
4.1. Technological infrastructure

Evaluation of technology infrastructure is imperative before entering a new market to assess
how technology affects the firm’s value chain → deciding efficient production process and
effective approaching strategies.
4.2. Internet penetration

Leverage social media and e-commerce to increase direct retail to consumers and sales;
leverage Internet’s trends to expand awareness among customers, increase customers’ loyalty.
4.3. Investment in R&D

Technological innovation can boost technological upgradation in business’s policies in
management, cost-effective marketing, and upgrade production procedure. potentials of 5G →
Invest more in R&D to improve customers’ experience with increased delivery speed and
available access.
5. ENVIRONMENTAL
5.1. Environmental regulations

Have a great impact on business performance, national budget’s allocation and cost advantage
in the Restaurant Industry: Need to adhere to all environmental regulations, norms, especially
in countries with strict environmental law systems.
5.2. Waste management

Many countries have strict norms of waste management and sustainability → Associate to the
waste management authorities and institutions to be able to follow regulations on hygiene and
disposal and avoid any future environmental scandals.

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5.3. Customers’ awareness

How customers evaluate green lifestyles and eco-friendly products directly impact business’s
performance → altering product innovation priorities, develop sustainable products → cater
traditional value proposition.
5.4. Renewable technologies
Some countries offer subsidies to stimulate investment in renewable technologies → Business

can leverage opportunities to invest in renewable technologies to ensure long-term
sustainability → enhance brand image → increase stakeholder satisfaction and expand the
customer base.
6. LEGAL
6.1. Business Laws

Before entering into a new market: Business needs to assess what the business laws are and
how they are different from the home market.
6.2. Transparency in Judiciary System & Processes + Time Taken for Court Proceedings
Knowing these laws is essential for fair and consistent decision making + protect business’s
rights.
6.3. Consumer Protection Laws
Be aware of what are the consumer laws in the country, what is the rate of enforcement, what
is the attitude of authorities towards consumer protection laws → Align its policies and
protection for customers’ private information.
6.4. Employment Protection Laws
Know clearly what employment laws and discrimination laws are in the country and are they
consistent with the business model → Providing a secure, fair, equal work environment for the
workforce → increase productivity and attracting talented labor.

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6.5. Intellectual Property Rights Protection
Haidilao should assess the level of protection that intellectual property rights get under the
legal system of the country → protect business’s innovations and patents.
6.6. Health & Safety Laws

Different countries have different attitudes towards health and safety → business conducts
thorough research and needs to comply with the health and safety laws in the country, provide
training, guidelines for physical and emotional safety for employees.
II/ MICRO ENVIRONMENT (PORTER’S 5 FORCES)
1. RIVALRY AMONG COMPETING SELLERS

Competitive Landscape China
- Chinese Cuisine Market - Haidilao Leading in a Highly Fragmented Market
● The Chinese cuisine market in the PRC is highly fragmented, with the five largest
players holding only 0.8% of the total market share in 2017.
● Haidilao ranked first in the Chinese cuisine market in the PRC in 2015, 2016 and 2017
in terms of revenue.
● Haidilao also had the highest annual guest traffic at approximately 103.2 million guests
in 2017.
● In 2017, Haidilao was one of the fastest growing restaurant groups among major
Chinese restaurant groups.
● Haidilao ranked first among major Chinese cuisine brands in terms of certain key
performance indices, including but not limited to table turnover rate, annual sales per
restaurant and annual guest traffic.
● Gross revenue of Haidilao is more than 2 times higher than the 2nd company.
- Hot Pot Restaurant Market 4 Haidilao the Clear Leader
● Players in the hot pot restaurant market are intensely competitive with respect to food
quality and consistency, the value of money, ambiance, service, location, supply chain,
and availability of trained employees.
● The five largest players in the hot pot restaurant market in the PRC only held an
aggregate market share of 5.5% in terms of 2017 revenue. Haidilao ranked first in the
hot pot restaurant market in the PRC in 2015, 2016 and 2017, with a 2.2% market share
in terms of 2017 revenue.

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Global Chinese Cuisine Market - Haidilao the Clear Leader in Overseas Expansion.
- In order to take advantage of the growth of the global Chinese cuisine market, a number of
China-based restaurant groups have expanded overseas in the past few years.
- The five largest players only held a 0.6% share of the global market in terms of 2017
revenue. Haidilao was the largest Chinese cuisine company globally in 2015, 2016, and 2017
in terms of revenue.
2. SUPPLIERS
We primarily procure:
- Soup base for our hot pot Yihai Group has been our primary supplier of soup base
- Food ingredients, including meat, seafood and vegetables.
- Decoration materials and renovation services, decoration project management services,
equipment and consumables used in our restaurants.
- We procure food ingredients that do not require processing from third-party suppliers and
Processed Ingredients from Shuhai Group.
We procured warehousing and storage services and logistic services and food ingredients from
Shuhai Group.
- Decoration materials, renovation services and decoration project management services from
Shuyun Dongfang.
- Soup base and instant hot pot products from Yihai Group.
- Lamb products from Jarud Qi Haidilao.
- Human resources management and consulting services from Weihai Consulting.
We have entered into long-term framework agreements with these parties to secure a stable
supply of goods and services.
Our purchase amount from our five largest suppliers amounted to RMB 1,948.1 million, RMB
2,530.5 million, RMB 4,928.6 million and RMB 2,288.7 million in 2015, 2016 and 2017 and
the six months ended June 30, 2018, representing 63.3%, 68.2%, 81.7% and 51.7% of our total
purchases in the respective periods.
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(Haidilao Global Offering, page 5)
We generally have more than two qualified suppliers for each type of major food
ingredient to reduce reliance on a single supplier. Through our years of operations, we have
identified and established stable business relationships with high quality suppliers for our
major food ingredients → Suppliers are not too concentrated.
Have <Qualified Supplier List=. Since 2017, Our Group has been identifying alternative
suppliers for the Haidilao Customized Products in case the supply from the Yihai Group
cannot meet its requirements and demand, and has entered into an agreement with an
independent third-party supplier to procure a specific type of soup base product which the
Yihai Group is currently unable to manufacture → Substitute of ingredient products are
available.
We rely on certain connected persons for supplies and services and any shortage or
interruption in supply could slow our growth and reduce our profitability.
Difficulty in finding reliable suppliers of food ingredients meeting our quality standards at
acceptable prices and quantities → Switching cost is high.
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(Haidilao Global Offering, page 212)

→ Have strong relationships with suppliers.
3. BUYERS
- Brand recognition. Haidilao had the strongest brand recognition and was the most popular
dine-out option among Chinese cuisine brands.
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- Dining experience. Haidilao ranked first in terms of dining experience among Chinese
cuisine restaurant brands. Approximately 99.3% of participants who have dined at Haidilao
left satisfied, among which over 50% of participants were very satisfied with the dining
experience.
- Service. Haidilao was considered to have the best service attitude among major Chinese
cuisine brands.
- Differentiating factors. Participants considered Haidilao’s enthusiastic and intimate service,
tasty dishes, hygiene and healthiness of the food and menu variety to be the key factors when
choosing Haidilao. In particular, participants considered enthusiastic and intimate service to be
the most differentiating factor in Haidilao’s dining experience.
- Repeat guests. 68.3% of the participants who have dined at Haidilao visit at least once every
month and 98.2% of the participants who have dined at Haidilao would visit again.
- Hot pot is the most popular dine-out option in the PRC within the Chinese cuisine
segment. Hot pot is popular because of the diverse food ingredients available, the ability to
personalize taste preferences, the fresh and healthy cooking method and the social element of
the cuisine.
- Sichuan style hot pot accounted for approximately 64.2% of the PRC hot pot restaurant
market in terms of revenue in 2017 and is the most popular hot pot style in the PRC, according
to the F&S Survey.
- The popularity of Chinese cuisine in overseas markets is increased → Buyer demand is high.
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(Source: National Bureau of Statistics, Frost & Sullivan Analysis)
- Buyer cost of switching to competing products is low.

- After Covid-19, buyers’ income is lower → more price-sensitive.
4. SUBSTITUTES
- Haidilao’s substitutes are:
+ Other restaurants: BBQ, noodles, steamed hot pot...
+ Self-cooking.
- There are too many substitutes → increase competitive pressure.
- Haidilao targets the high-end customer segment. After Covid-19, customers are more likely
to be concerned about their health and diet. → increase the possibility that they cook their own
meal at home.
- Overall, the threat of substitutes is strong for the following reasons:
+ High availability of substitute products.
+ Low switching cost.
5. NEW ENTRANTS
- Entry barriers and challenges: Although there may not be significant entry barriers in
operating and managing a single restaurant, there are significant entry barriers in becoming a
large-scale chain restaurant group with multiple restaurant locations.
- Ability to manage growth. A large-scale chain restaurant generally has a large number of
restaurant staff. Despite comprehensive internal policies, due to the labor-intensive nature of
the restaurant business, it is more difficult to ensure that all of the staff comply with laws and
regulations of multiple jurisdictions, especially the detailed and stringent regulations in
relation to food safety.
- Supply chain management. The quality and the taste of hot pot depend significantly on the
freshness and quality of food ingredients. For a large-scale chain restaurant group, it is crucial
to have the ability to procure fresh and high quality food ingredients at favorable prices from
reliable suppliers and manage the inventory and logistics for food ingredients across all of its
restaurants. It is also important to ensure high quality food ingredients are available at
restaurants located in different regions and countries. New entrants with less supply chain
management experience may not be able to manage their supply chain effectively, which may
result in higher costs as well as have an adverse effect on the guest’s dining experience.
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- Initial set-up capital expenditure. Operating a large-scale chain restaurant group requires a
large amount of initial investment for rental costs, decoration costs, equipment costs and staff
costs, among others. For new entrants with less capital and less bargaining power, the initial
set-up capital expenditure required for large-scale operations may be too significant and
insufficient revenue generated from newly operating restaurants may create cash flow
problems.
- Increasing labor costs and high employee attrition. Employee attrition is a pain point of
the catering industry at large. Like other restaurants, hot pot restaurants require a large number
of service personnel. Low attrition rates allow restaurants to maintain their service quality and
continued growth. As a result, restaurants may need to offer higher salaries in order to retain
experienced personnel.
C/ INTERNAL ENVIRONMENT
I/ ORGANIZATIONAL CULTURE
1. BRAND IMAGE
1.1. Name <Haidilao=

The name "Haidilao" originally came from Sichuan mahjong, which is a term used in mahjong
where the player wins the game with the last tile drawn by himself. When Haidilao was
founded, the founder did not have extra money to advertise, so to achieve a better publicity
effect, the only way to start is with the name, one is to remember, and the other is to have a
good meaning. It goes without saying that Sichuan people like to play mahjong, so "Haidilao"
is not only memorable, but also can be evoked at any time in life scenes. As for the good
meaning, besides the good luck of winning the game, the name is also associated with the
action of "fishing for food" from the pot, which is a vivid image. Therefore, the founders
decided on the name "Haidilao".
1.2. Logo
In 2019, based on the mid-to-high-end brand positioning and international market
development strategy, Haidilao adjusted its corporate image logo, one is to change the Chinese
pinyin "HaiDiLao" to English "Hi", in line with Haidilao's strategy of simultaneous
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high-speed expansion at home and abroad. "Hi" not only harmonizes with the first word "Hai"
of "HaiDiLao", but also serves as a global symbol, which can refer to a mutual greeting of "
Hi", can also be interpreted as "High" for having a good meal, which can make foreign friends
easy to read and remember at the same time and better understand China's unique hot pot
social culture; The second is to simplify and merge the Haidilao's pattern and characters,
deleting the original wing-like pattern and simplifying the long series of pinyin characters, and
merging them together into a concise combination of the circle "Hi" and the Chinese
characters "Haidilao", which gives people a simple, high-end, international feeling. The "i" is
designed in the shape of a chili pepper, representing the identity of Haidilao, which is known
for its spicy Sichuan-style hot pot.
1.3. Slogan
<KHÁCH HÀNG HÀI LÒNG – NHÂN VIÊN TẬN TÂM=
2. BRAND MISSION
2.1. Philosophy
We are always committed to the mission of creating happy hot pot time and spreading healthy
hot pot culture to foodies all over the world through selected products and innovative services.
As a large restaurant chain with global outreach, following the business principle of integrity,
Haidilao seeks to provide consumers with more thoughtful services and healthier, safer and
better food with more nutrition, while enhancing the stability and safety of food quality.
2.2. Vision
Communication is a must in establishing trust among people and Chinese hot pot is a perfect
choice for enhancing social networking at table. Haidilao is committed to encouraging more
people to chat with each other and enjoy their food at table, and creating a kind of table culture
favored by young people around the world.
3. CORPORATE SOCIAL RESPONSIBILITY
3.1. Devotion to communities

While ensuring steady operation, we genuinely appreciate everyone who has supported us and
never forgot our original aspiration. We actively fulfil our corporate social responsibilities,
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encourage our employees to participate in charity and volunteer work, contributing to local
communities.
3.2. Bingwen library

The name <Bingwen= is taken from the grandfather of Mr. Zhang Yong, Chairman of Haidilao
in honor of the old gentleman and as a way of giving back to society. Our motto is <Think and
aspire, read and learn=. The public library project was initiated to boost cultivation of the
mind, encourage people to read more and better and build a place for permanent learning.
Located on the third floor of Xuhai Times Square, the library fosters a dynamic modern space
across an area of 1,080 square meters, which are divided into several sections by an entire
GRG decorative material and book shelves. It employs the Chinese Library Classification
(CLC) or Classification for Chinese Libraries (CCL) scheme to classify over 30,000 books
into 26 categories. Visitors can read e-books, borrow printed books, and enjoy interactive
reading sessions and public lectures.
3.3. <Beauty in Kindness=

Through the cooperation with the 5A-level foundation, Ai You Foundation, we have collected
and auctioned children’s paintings at our restaurants nationwide. And the money we raise will
be used to improve the living conditions and healthcare services of children struggling in
poverty. We aim to provide long-term assistance to the welfare and healthcare projects of
children aged 0-14.
3.4. Jianyang Tongcai Experimental School

Jianyang Tongcai Experimental School is a private boarding school established in June 2001
by Sichuan Haidilao Catering Co., Ltd. Provided with the funds from Haidilao, the School is
growing rapidly due to the hard work of all faculty and students, under the support of the
municipal Party committee and people’s government of Jianyang City and competent
education administrations at different levels.
The name of Tongcai School was inspired by <Tongcai Academy=, the predecessor of
Jianyang Middle School. The term <Tongcai=, literally versatile talents in Chinese, represents
the mission and goals of the school that seeks to train every student to be successful with
widely developed skills.
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II/ RESOURCES
1. TANGIBLE RESOURCES
1.1. Finance
- Profit before tax of Chinese restaurant chain Haidilao Group from 2015 to 2021(in billion
yuan) (7)
- According to Haidilao's annual report of 2021:

+ Total equity was 7,928,625 000 RMB.
+ Non current assets: 16,615,985 000 RMB.
+ Current assets: 11,405,502 000 RMB.
→ Sustainable financial position.
1.2. Physical assets

- 1400+ restaurants globally.
- 30 sub-warehouse across Mainland China.
2. INTANGIBLE RESOURCES
2.1. Technology
Haidilao smart restaurant employs the newly self-developed IKMS System (Intelligent
Kitchen Management System) to achieve integrated kitchen management:
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As the intelligent brain of the intelligent kitchen, IKMS is able to collect the data of all links in
the intelligent kitchen and conduct multi-dimensional analysis, so as to monitor the overall
status of the kitchen’s operation, production, stock and expiration date of food to achieve
unified management.
Combined with the technologies of machine learning and AI, IKMS aims to realize automatic
production management process, intelligent and accurate inventory management, informative
and visualized production data, and whole life cycle monitoring of dishes to ensure product
quality.
Intelligent Serving: Scientific and technological innovation helps improve food safety
standards.
2.2. The brand

Haidilao brand value $4,656M in 2022, ranking 10th in top 25 restaurant chains in the world.
(brandirectory)
2.3. Customer relationship

Hai Di Lao is a well-known brand in China (Liang, Interview, 2020), so in order to acquire
new customers, it is dependent on word-of-mouth. Thereafter, it attracts the customers to come
back by its customer centric and employee-centric approaches. The empowered frontline
employees are strong initiators for the first steps of customer relationship creation.
3. HUMAN RESOURCES
3.1. Training and development

- The company provides in-house training specific for different job roles and job designs to its
employees which helps them in achieving their desired job responsibilities.
- The training and investment by the company in individuals leads to strong organizational
commitment, and is a valuable competency in allowing the Haidilao Selling Hot Pot or Selling
Service to benefit through a strong and committed workforce.
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- The training provided by the company refines individuals not only for their job roles and
professional growth, but also towards personal growth and development.
- Haidilao focuses on providing employees with lifelong learning opportunities, cultivating
employees’ ability to explore their own potential, and promoting the growth of the Company’s
talent team. As an important platform for the Company to comprehensively cultivate talents
and empower employees to grow, Haidilao Learning and Development Center constantly
improves training methods and forms to help employees develop in an all-round way and
achieve win-win development for the Company and employees.
3.2. Employee well-being

- Employees are the valuable resources and wealth of an enterprise.
- Haidilao pays attention to employees’ sense of achievement and happiness, and is committed
to providing employees with a safe and warm working environment, providing complete
welfare guarantees and a high degree of humanistic care, and enhancing the Company’s
cohesion and centripetal force.
- Provide employees with welfare assurance, Employee care, Parent-child companionship for
employees and a safe and healthy work environment.
III/ CAPABILITIES
1. VALUE CHAIN & VALUE SYSTEM

- Haidilao Haidilao's value chain is part of a larger value system of the industry that includes
companies either upstream (suppliers) or downstream (distribution channels), or both.
Managers at The Haidilao Company need to see each activity as part of that value system and
how adding each activity or reducing each activity impacts the The Haidilao Company value
chain. The decision is regarding where to sit in the value system.
- Value Chain Activities 3 Primary Activities & Support Activities: As per the Value Chain
model there are broadly two generic categories of activities 3 Primary Activities and
Supporting Activities.
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2. PRIMARY ACTIVITIES
As illustrated in the Value Chain diagram, Haidilao has five generic categories of primary
activities:
2.1. Inbound Logistics
- These activities of Haidilao are associated with receiving, storing and disseminating the
inputs of the products. It can include material handling, warehousing of physical products, as
well as architecture to receive and store customer information for digital media companies.
Haidilao at present has outsourced most of its inbound logistics activities.
- The Haidilao Selling Hot Pot or Selling Service is valued globally for its distribution system.
- The company has also successfully provided products, and made them extremely accessible
for countries where operating units do not exist.
- This has been made possible through the highly efficient distribution system of the company
that supplies products globally.
- The company’s relation with dealers and suppliers is particularly string and based on
strictly followed standards and criteria.
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- This is a valuable resource for the company that allows the Haidilao Selling Hot Pot or
Selling Service Company to exploit further opportunities in different regions and countries
globally.
- The Haidilao Selling Hotpot or Selling Service makes substantial investments in research
and development.
- The research and development function at Haidilao Selling Hot Pot or Selling Service
enables it to stay abreast of market trends and consumer behavior.
- With knowledge of changing consumer tastes and preferences, Haidilao selling Hot Pot or
Selling Service Company is able to make use of its research and development function to
develop offerings that meet the changing tastes and demands.
- Investment in articulate and focused R&D is a resource for the Haidilao that has
allowed the business to maintain competitive focus and exploit other resources
effectively.
2.2. Operations
- Activities that help the organization to transform raw material into finished products. For the
purpose of this article the definition is broad 3 it can mean using customer data to serve
advertisements based on usage behavior to clients, moulding plastic to make products etc.
- The Haidilao Selling Hot Pot or Selling Service has high production capacities.
- The brand supplies products globally at different locations, in over a hundred countries.
- The streamlined production process that employs effective and efficient operational
costs and inventory management systems provides a unique edge and competitiveness to
the Haidilao Selling Hot Pot or Selling Service Company.
- This in turn becomes a non-substitutable advantage for the company that allows it to
explore new regions efficiently as well.
2.3. Outbound Logistics

- Haidilao undertakes these activities to distribute the finished products to channel partners
and final buyers. Outbound logistics activities include 3 processing, scheduling, warehousing,
wholesalers and retailers order fulfillment, and distribution network.
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- One of the greatest strengths and resources enjoyed by the Haidilao Selling Hotpot or Selling
Service Company is its control over, and development of distribution channels.
- The company’s distribution system, and the supply chain comprises a number of different
distribution channels 3 that are agent and dealer based, and also owned and controlled
by the company.
- The mix of distribution channels allows the Haidilao Selling Hot Pot or Selling Service to
have access to, and penetrate different markets, and increase the number of sales and
consumption of its products.
- The articulate and intricately designed distribution network has proven to be an inimitable
resource for the company that has developed with time through strong relations with suppliers
and distributors.
2.4. Marketing and Sales

- These activities are undertaken by Haidilao to create means through which the buyer can buy
a firm’s products. These activities include 3 marketing, channel selection, sales force
management, advertising and promotion, pricing etc.
- The Haidilao Selling Hot Pot or Selling Service has made use of marketing
communications strategically to induce higher consumption.
- The strategic focus of the business is enveloped by the organizational culture, and the
business vision under the strategic leadership – which in turn is inimitable.
- The marketing communications for the company are thus an inimitable resource that have
allowed the brand to maintain long term competitive advantage internationally.
2.5. Services
- Haidilao Haidilao's needs to provide after sales services and maintenance for successful
usage of the product. Service activities of Haidilao can include 3 training, installation services,
part supply, post sales maintenance, and product forward and backend alignment of software.
- The Haidilao Selling Hot Pot or Selling Service provides a unique customer experience
to the customers.
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- The company offers customers high brand engagement with the experience that is
memorable, and relevant for the target groups.
- The company engages with the customers at multiple touchpoints, and offers a holistic
experience that leads to customers wanting repeat purchases.
- The engagement and brand experience for customers for the Haidilao Selling Hot Pot or
Selling Service has also expanded beyond the basic product offering, and evolved into
offering and engaging consumers with relevant content generation that allows the brand
to increase its equity.
- This is thus a non-substitutable advantage enjoyed by the Haidilao Selling Hot Pot or
Selling Service.
3. SUPPORTING ACTIVITIES
As the name explains, Support Activities of Haidilao are the one that supports the firm’s
Primary Activities. Porter divided the Support Activities into four broad categories and each
category of support activities is divisible into a number of distinct value activities that are
specific to the industry in which Haidilao operates. The four generic support activities are:
3.1. Firm Infrastructure

- Firm infrastructure support activities at Haidilao consists of activities such as 3 finance and
accounting, planning, general management, quality management and legal services.
- Firm infrastructure activities at Haidilao supports the entire value chain though the scope
varies given that Haidilao is a diversified company even within the industry. For example the
finance and planning at Haidilao are managed at corporate level while quality management,
accounting and legal issues are managed at business unit level.
- Haidilao Selling Hotpot or Selling Service enjoys substantial financial strength in addition to
its brand strength.
- The financial strength supports the company in exploring opportunities for new product
developments and launches.
- The financial strength is also important in allowing the company to evaluate potential
mergers and acquisitions for gaining competitive advantage.
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- The financial strength has also been a source of value for the company in helping it focus on
innovation in product offerings, and maintaining consistent quality throughout different
countries where it operates.
- The financial strength is also valuable because of the support it offers to the company’s vast
and well managed distribution system.
- The financial strength is particularly important for the Haidilao Selling Hot Pot or Selling
Service in enabling it to realize possibilities and opportunities 3 internally as well as
externally.
- The Haidilao Selling Hot Pot or Selling Service is valued globally for its distribution system.
- The company has also successfully provided products, and made them extremely accessible
for countries where operating units do not exist.
- This has been made possible through the highly efficient distribution system of the company
that supplies products globally.
- The company’s relation with dealers and suppliers is particularly strong and based on strictly
followed standards and criteria.
- This is a valuable resource for the company that allows the Haidilao Selling Hot Pot or
Selling Service Company to exploit further opportunities in different regions and countries
globally.
3.2. Human Resources Management

- In an environment where each organization is striving to become a learning organization,
Human Resources Management is key to the success of any organization. HRM support
activities include 3 Recruiting, Training & Development, Selection, Hiring, People Planning,
Skill Assessment and Compensation at both business unit level and corporate level.
- Human resource management affects competitive advantage in any firm, but in some
industries it is a defining factor. For example in the consulting companies HR is the main
source of competitive advantage.
- The company provides in-house training specific for different job roles and job designs to its
employees which helps them in achieving their desired job responsibilities.
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- The training provided by the company refines individuals not only for their job roles and
professional growth, but also towards personal growth and development.
- The training and investment by the company in individuals leads to strong organizational
commitment, and is a valuable competency in allowing the Haidilao Selling Hot Pot or Selling
Service to benefit through a strong and committed workforce.
- The Haidilao Selling Hotpot or Selling Service invests substantially in its human resources.
- The human resource function of the brand is important in building the competitive advantage
for the company by providing it with improved talent.
- The human resource function at the Haidilao Selling Hot Pot or Selling Service is
responsible for all employee related activities 3 from recruiting to compensation management
to succession planning and training.
- The human resource function is also important for maintaining the supportive organizational
culture at the Haidilao Selling Hot Pot or Selling Service.
- The human resource function is important for the Haidilao Selling Hot Pot or Selling Service
to grow and develop further, and exploit other resources with smoothness.
- The Haidilao Selling Hotpot or Selling Service enjoys a supportive and innovative
organizational culture.
- The organizational culture at the company allows growth and development of not only the
business at large, but also of individual employees.
- The organizational culture is free sharing of information, and supports teamwork and
synergy.
- This is an important competency and resource for the Haidilao Selling Hot Pot or Selling
Service which allows it to grow internationally, and support various diversifications as well.
3.3. Technology Development

- Technology supports almost all activities in modern day organization. In the technology
industry, technology development has become a source of competitive advantage. Technology
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development at Haidilao may include activities such as - process engineering, feature design,
technology selection, field-testing, and component design.
- The technological advancements and integration at the Haidilao Selling Hot Pot or Selling
Service are also an important resource for developing competitive advantage
- The technological advancement allows the Haidilao Selling Hot Pot or Selling Service to
maintain effectiveness and efficiency in its various business processes and operations.
- The technological advancement and integration also allows a smooth management of global
operations for the company which is important to maintain effective logistic management.
- The technological advancements and systematic integration is a competency that allows the
Haidilao Selling Hot Pot or Selling Service to build long term competitive advantage over
competition.
3.4. Procurement Activities at Haidilao

- Procurement activities at Haidilao include activities that are undertaken to purchase inputs
that are used by Haidilao Haidilao's’s value chain. It doesn’t include purchase inputs
themselves. Purchased inputs may include - raw materials, supplies, machinery, laboratory
equipment, office equipment, and buildings.
- Like all other value chain activities, procurement also employs technology for things such as
3 procedures, vendor management, information system, and supply chain partner qualification
rules and ongoing performance evaluation.
D/ SWOT ANALYSIS
I/ SWOT
1. STRENGTHS (10)
a, Human
- Learning organization: Haidilao is a learning organization. It has inculcated three key
characteristics of learning organization in its processes and operations 3 exploration,
creativity, and expansiveness. The work place at Haidilao is an open place that encourages
instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in
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The Haidilao Company Harvard Business Review case study emphasize 3 knowledge,
initiative, and innovation.
- Highly skilled collaborators: Haidilao has a highly efficient outsourcing and offshoring
strategy. It has resulted in greater operational flexibility and bringing down the costs in the
highly price sensitive segment. Secondly, the value chain collaborators of the firm in The
Haidilao Company HBR case study have helped the firm to develop new products and bring
them quickly to the marketplace.
- Cross disciplinary teams: Horizontal connected teams at the Haidilao are driving
operational speed, building greater agility, and keeping the organization nimble to compete
with new competitors. It helps organizations to ideate new ideas, and execute them swiftly in
the marketplace.
- Ability to recruit top talent: Haidilao is one of the leading recruiters in the industry.
Managers in The Haidilao Company are in a position to attract the best talent available. The
firm has a robust talent identification program that helps in identifying the brightest.
b, Strategy
- Sustainable margins compared to other players in Strategy & Execution industry: The
Haidilao Company firm has clearly differentiated products in the marketplace. This has
enabled Haidilao to fetch a slight price premium compared to the competitors in the Strategy
& Execution industry. The sustainable margins have also helped Haidilao to invest into
research and development (R&D) and innovation.
- Effective Research and Development (R&D): Haidilao has an innovation driven culture
where significant part of the revenues are spent on the research and development activities.
This has resulted in, as mentioned in case study The Haidilao Company - staying ahead in the
industry in terms of 3 new product launches, superior customer experience, highly competitive
pricing strategies, and great returns to the shareholders.
- Organizational Resilience of Haidilao: The covid-19 pandemic has put organizational
resilience at the center of everything that Haidilao does. Organizational resilience comprises -
Financial Resilience, Operational Resilience, Technological Resilience, Organizational
Resilience, Business Model Resilience, and Reputation Resilience.
- High switching costs: The high switching costs that Haidilao has built up over years in its
products and services combo offer has resulted in high retention of customers, lower
marketing costs, and greater ability of the firm to focus on its customers.
c, Technology
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- Digital Transformation in Strategy & Execution segment: Digital transformation varies

from industry to industry. For Haidilao Haidilao's digital transformation journey comprises
differing goals based on market maturity, customer technology acceptance, and organizational
culture. Haidilao has successfully integrated the four key components of digital transformation
3 digital integration in processes, digital integration in marketing and customer relationship
management, digital integration into the value chain, and using technology to explore new
products and market opportunities.
- Innovation driven organization: Haidilao is one of the most innovative firms in the sector.
Managers in The Haidilao Company Harvard Business Review case study can use Clayton
Christensen Disruptive Innovation strategies to further increase the scale of innovations in the
organization.
d, Product
- High brand equity: Haidilao has strong brand awareness and brand recognition among both
- the existing customers and potential new customers. Strong brand equity has enabled
Haidilao to keep acquiring new customers and building profitable relationships with both the
new and loyal customers.
- Successful track record of launching new products: Haidilao has launched numerous new
products in the last few years, keeping in mind evolving customer preferences and competitive
pressures. Haidilao has effective processes in place that help in exploring new product needs,
doing quick pilot testing, and then launching the products quickly using its extensive
distribution network.
2. WEAKNESSES (10)
a, Human
- Compensation and incentives: The revenue per employee as mentioned in the HBR case
study The Haidilao Company, is just above the industry average. Haidilao Haidilao's needs to
redesign the compensation structure and incentives to increase the revenue per employee.
Some of the steps that it can take are 3 hiring more specialists on project basis, etc.
- Employees’ incomplete understanding of strategy: From the instances in the HBR case
study The Haidilao Company, it seems that the employees of Haidilao don’t have a
comprehensive understanding of the firm’s strategy. This is reflected in a number of
promotional campaigns over the last few years that had mixed messaging and competing
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priorities. Some of the strategic activities and services promoted in the promotional campaigns
were not consistent with the organization’s strategy.
b, Strategy
- Capital Spending Reduction: Even during the low interest decade, Haidilao has not been
able to do capital spending to the tune of the competition. This has resulted in fewer
innovations and companies facing stiff competition from both existing competitors and new
entrants who are disrupting the industry using digital technology.
- Slow decision making process: As mentioned earlier in the report, Haidilao has a very
deliberative decision making approach. This approach has resulted in prudent decisions, but it
has also resulted in missing opportunities in the industry over the last five years. Haidilao,
even though it has strong showing on digital transformation in the first two stages, has
struggled to capitalize the power of digital transformation in marketing efforts and new
venture efforts.
- High dependence on existing supply chain: The disruption in the global supply chains
because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile
nature of Haidilao Haidilao's supply chain. Even after a few cautionary changes mentioned in
the HBR case study - The Haidilao Company, it is still heavily dependent upon the existing
supply chain. The existing supply chain brings in cost efficiencies but it has left Haidilao
vulnerable to further global disruptions in South East Asia.
- High bargaining power of channel partners: Because of the regulatory requirements, F.
Warren McFarlan, Zheng Xiaoming, Ziqian Zhao suggest that Haidilao is facing the high
bargaining power of the channel partners. So far it has not been able to streamline the
operations to reduce the bargaining power of the value chain partners in the industry.
c, Product
- Products dominated business model: Even though Haidilao has some of the most
successful products in the industry, this business model has made each new product launch
extremely critical for continuous financial growth of the organization. firm in the HBR case
study - The Haidilao Company should strive to include more intangible value offerings along
with its core products and services.
- High operating costs: Compared to the competitors, firm in the HBR case study The
Haidilao Company has high operating costs in the. This can be harder to sustain given the new
emerging competition from nimble players who are using technology to attract Haidilao's
lucrative customers.
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- Slow to strategic competitive environment developments: As The Haidilao Company

HBR case study mentions - Haidilao takes time to assess the upcoming competitions. This has
led to missing out on at least 2-3 big opportunities in the industry in the last five years.
- No frontier risks strategy: After analyzing the HBR case study The Haidilao Company, it
seems that the company is thinking about the frontier risks that can impact Strategy &
Execution strategy. But it has very little resources allocation to manage the risks emerging
from events such as natural disasters, climate change, melting of permafrost, tackling the rise
of artificial intelligence, opportunities and threats emerging from commercialization of space
etc.
- Low market penetration in new markets: Outside its home market of Haidilao Haidilao,
firm in the HBR case study The Haidilao Company needs to spend more promotional,
marketing, and advertising efforts to penetrate international markets.
3. OPPORTUNITIES (10)
a, Human
- Remote work and new talent hiring opportunities: The widespread usage of remote
working technologies during Covid-19 has opened opportunities for Haidilao to expand its
talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in
fields such as finance, information technology, can continuously work from remote local post
Covid-19. This presents a really great opportunity for Haidilao to hire the very best people
irrespective of their geographical location.
b, Strategy
- Increase in government spending: As the United States and other governments are
increasing social spending and infrastructure spending to build economies post Covid-19,
Haidilao can use these opportunities to build new business models that can help the
communities that Haidilao operates in. Secondly it can use opportunities from government
spending in the Strategy & Execution sector.
- Using analytics as a competitive advantage: Haidilao has spent a significant amount of
money and effort to integrate analytics and machine learning into its operations in the sector.
This continuous investment in analytics has enabled, as illustrated in the Harvard case study
The Haidilao Company - to build a competitive advantage using analytics. The analytics
driven competitive advantage can help Haidilao To build faster Go To Market strategies, better
consumer insights, developing relevant product features, and building a highly efficient supply
chain.
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- Developing new processes and practices: Haidilao can develop new processes and
procedures in Strategy & Execution industry using technology such as automation using
artificial intelligence, real time transportation and products tracking, 3D modeling for concept
development and new products pilot testing etc.
c, Technology
- Leveraging digital technologies: Haidilao can leverage digital technologies such as
artificial intelligence and machine learning to automate the production process, customer
analytics to get better insights into consumer behavior, realtime digital dashboards to get better
sales tracking, logistics and transportation, product tracking, etc.
- Lowering marketing communication costs: 5G expansion will open new opportunities for
Haidilao in the field of marketing communication. It will bring down the cost of doing
business, provide a technology platform to build new products in the Strategy & Execution
segment, and it will provide faster access to the consumers.
- Buying journey improvements: Haidilao can improve the customer journey of consumers
in the industry by using analytics and artificial intelligence. The Haidilao Company suggests
that firms can provide automated chats to help consumers solve their own problems, provide
online suggestions to get maximum out of the products and services, and help consumers to
build a community where they can interact with each other to develop new features and uses.
- Use of Bitcoin and other crypto currencies for transactions: The popularity of Bitcoin
and other crypto currencies as asset class and medium of transaction has opened new
opportunities for Haidilao in the consumer business. Now Haidilao can target international
markets with far fewer capital restrictions requirements than the existing system.
d, Products
- Loyalty marketing: Haidilao has focused on building a highly responsive customer
relationship management platform. This platform is built on in-house data and driven by
analytics and artificial intelligence. The customer analytics can help the organization to fine
tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage
on mainstream advertising spending, build better pricing strategies using personalization, etc.
- Creating value in data economy: The success of the analytics program of Haidilao has
opened avenues for new revenue streams for the organization in the industry. This can help
Haidilao to build a more holistic ecosystem as suggested in the The Haidilao Company case
study. Haidilao can build new products and services such as - data insight services, data
privacy related products, data based consulting services, etc.
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- Better consumer reach: The expansion of the 5G network will help Haidilao to increase its
market reach. Haidilao will be able to reach out to new customers. Secondly, 5G will also
provide a technology framework to build new tools and products that can help more
immersive consumer experience and faster consumer journey.
- Finding new ways to collaborate: Covid-19 has not only transformed business models of
companies in Strategy & Execution industry, but it has also influenced consumer preferences.
Haidilao can tie-up with other value chain partners to explore new opportunities regarding
meeting customer demands and building a rewarding and engaging relationship.
- Harnessing reconfiguration of the global supply chains: As the trade war between US and
China heats up in the coming years, Haidilao can build a diversified supply chain model
across various countries in - South East Asia, India, and other parts of the world. This
reconfiguration of the global supply chain can help, as suggested in case study, The Haidilao
Company, to buy more products closer to the markets, and it can leverage its size and
influence to get better deals from the local markets.
4. THREATS (10)
a, Human
- High level of anxiety and lack of motivation: The Great Resignation in the United States is
the sign of broader dissatisfaction among the workforce in the United States. Haidilao
Haidilao's needs to understand the core reasons impacting the Strategy & Execution industry.
This will help it in building a better workplace.
- Aging population: As the populations of most advanced economies are aging, it will lead to
high social security costs, higher savings among the population, and lower demand for goods
and services in the economy. The household savings in the US, France, UK, Germany, and
Japan are growing faster than predicted because of uncertainty caused by the pandemic.
- Increasing wage structure of Haidilao: Post Covid-19 there is a sharp increase in the
wages especially in the jobs that require interaction with people. The increasing wages can put
downward pressure on the margins of Haidilao.
- Learning curve for new practices: As the technology based on artificial intelligence and
machine learning platform is getting complex, as highlighted in case study The Haidilao
Company, Haidilao may face a longer learning curve for training and development of existing
employees. This can open space for more nimble competitors in the field of Strategy &
Execution.
b, Strategy
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- Capital market disruption: During the Covid-19, Dow Jones has touched record high. The
valuations of a number of companies are way beyond their existing business model potential.
This can lead to capital market correction which can put a number of suppliers, collaborators,
value chain partners in great financial difficulty. It will directly impact the business of
Haidilao.
- New competition: After the dotcom bust of 2001, the financial crisis of 2008-09, the
business formation in the US economy had declined. But in 2020 alone, there will be more
than 1.5 million new business applications in the United States. This can lead to greater
competition for Haidilao Haidilao in the Strategy & Execution sector and impact the
bottomline of the organization.
- Instability in the European markets: European Union markets are facing three big
challenges post Covid 3 expanded balance sheets, Brexit related business disruption, and
aggressive Russia looking to distract the existing security mechanism. Haidilao will face
different problems in different parts of Europe. For example, it will face inflationary pressures
in the UK, France, and Germany, balance sheet expansion and demand challenges in Southern
European countries, and geopolitical instability in the Eastern Europe.
- Trade war between China and the United States: The trade war between two of the
biggest economies can hugely impact the opportunities for Haidilao in the Strategy &
Execution industry. The Strategy & Execution industry is already protected from local
competition in China, with the rise of trade war the protection levels may go up. This presents
a clear threat to the current business model in the Chinese market.
- Easy access to finance: Easy access to finance in Strategy & Execution field will also
reduce the barriers to entry in the industry, thus putting downward pressure on the prices
because of increasing competition. Haidilao can utilize it by borrowing at lower rates and
invest it into research and development, capital expenditure to fortify its core competitive
advantage.
- Environmental challenges: Haidilao Haidilao's needs to have a robust strategy against the
disruptions arising from climate change and energy requirements. The EU has identified it as a
key priority area and is spending 30% of its 880 billion Euros European post Covid-19
recovery funds on green technology. Haidilao can take advantage of this fund but it will also
bring new competitors in the Strategy & Execution industry.
c, Technology
- Backlash against dominant players: US Congress and other legislative arms of the
government are getting tough on big business especially technology companies. The digital
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arm of Haidilao Haidilao's business can come under increasing regulations regarding data
privacy, data security, etc.
- Technology disruption because of hacks, piracy etc: The colonial pipeline illustrated how
vulnerable modern organizations are to international hackers, miscreants, and disruptors. The
cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the
organization.
d, Product
- Shortening product life cycle: it is one of the major threats that Haidilao is facing in the
Strategy & Execution sector. It can lead to higher research and development costs, higher
marketing expenses, lower customer loyalty, etc.
II/ SWOT STRATEGIES
1. SO STRATEGY (9)
- The geographic presence of The Haidilao Company in different regions can help the
organisation to get into the international market and target the geographically dispersed
customer base.
- Strong online presence on different social networking sites of The Haidilao Company can
allow the organisation to exploit opportunities offered by the growing e-commerce trend.
- The well-developed and efficiently integrated IT infrastructure of The Haidilao Company
allows it to take advantage of emerging innovative technologies.
2. WO STRATEGY (9)
- Project management practices can be improved to exploit the opportunities offered by
emerging market segments. It will allow the organisation to successfully handle new product
development projects.
- The Haidilao Company can reduce the job stress and increase workers’ morale to launch new
and creative products by exploiting creative thinking capabilities of its workforce.
- The Haidilao Company can improve the customer service to generate positive word of mouth
on different social networking sites.
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3. ST STRATEGY (9)
- The Haidilao Company's access to the suppliers that offer raw material at a lower cost can
help it overcome the threat imposed by rising inflation.
- Competent and committed human capital of The Haidilao Company can overcome the labour
shortage problem in the market.
- Workplace diversity can help an organisation to take globalisation as an opportunity instead
of threat due to high cross-cultural intelligence.
4. WT STRATEGY (9)
- An organisation may increase the expenditure on the research and development activities to
cope with the competitive pressure due to the rising number of indirect and direct competitors.
- The organisation can improve waste management practices and integrate sustainability in
business operations. It will help the organisation to effectively handle environmental pressure.
- The pricing strategy can be resettled and realigned to maximise the value for money and
overcome challenges imposed by deteriorating economic conditions.
E/ REFERENCES
(1) Haidilao Intl (Hong Kong) PESTEL / PEST / STEP Analysis. Available at:
https://embapro.com/frontpage/pestelcoanalysis/8417-haidilao-intl?fbclid=IwAR1n7PCuERI
m3ArMXYgnaG9lZsUpZMbp_82D6HyWCNkdQ1NJMKNro9Xvf9E
(2) F. Warren McFarlan, Zheng Xiaoming, Ziqian Zhao, 2018, The Haidilao Company
Harvard Business Review Case Study, published by HBR Publications. Available at:
https://embapro.com/frontpage/pestelcase/14898-haidilao-haidilao-s?fbclid=IwAR0G236kq8
UTVcyFeXofvH2aMEIlrM0GA-HZoWiKcHBVEavjQvySus7KCwo
(3) China GDP. Available at: https://tradingeconomics.com/china/gdp
(4) Zander Henry, 2018, Haidilao Catering From a Hot Pot to Crisis Management PESTEL
Analysis. Available at:
https://www.case48.com/pestel-case/26875-Haidilao-Catering-From-a-Hot-Pot-to-Crisis-Man
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agement?fbclid=IwAR10zPLr6hTUUPlt6Jr6VH2V168sY4BMmZiCM43KCtdgKJ3ZXllljRev
Am0
(5) Kyle Wong, 2018, What Brands Can Learn About Customer Experience From Hot Pot
Chain Hai Di Lao. Available at:
https://www.linkedin.com/pulse/what-brands-can-learn-customer-experience-from-hot-pot-kyl
e-wong/?trk=pulse-article_more-articles_related-content-card
(6) Haidilao International Holding LTD, Annual Report 2021. Available at:
https://website-global.hdlcdns.com/website/file/c0ad505dda7b41e79246d708c974796d
(7) Agne Blazyte, 2022, Profit before tax of Chinese restaurant chain Haidilao Group from
2015 to 2021. Available at:
https://www.statista.com/statistics/999091/china-gross-profit-of-haidilao-group/
(8) Restaurant 25 2022 Ranking. Available at: https://brandirectory.com/rankings/restaurants/
(9) Jessica Byrne, 2018, The Haidilao Company SWOT Analysis. Available at:
https://www.case48.com/swot-case/14898-The-Haidilao-Company
(10) F. Warren McFarlan, Zheng Xiaoming, Ziqian Zhao, The Haidilao Company SWOT
Analysis / TOWS Matrix / Weighted SWOT Analysis. Available at:
https://oakspringuniversity.com/frontpage/swotcaseanalysis/14898-haidilao-haidilao-s
(11) Zhao Qiaoqiao, 2022, Haidilao Corporate Culture and Corporate Image Communication
Research Report. Available at: https://francis-press.com/papers/6266
(12) Zhang Yong, Chairman of Haidilao International Holding Ltd, 2022, Haidilao
International Holding Ltd: Announcement of annual results for the year ended December 31,
2021. Available at:
https://website.hdlcdns.com/website/file/24c6b85d3ee44eae8c5e55a95149fdb6
(13) Haidilao International Holding Ltd: Global Offering, 2018. Available at:
https://website.hdlcdns.com/website/file/fedbe0e48c6047b6ab96c48e4c30cbf7
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(14) F. Warren McFarlan, Zheng Xiaoming, Ziqian Zhao, The Haidilao Company SWOT
Analysis & Matrix / MBA Resources. Available at:
https://embapro.com/frontpage/swotcase/14898-haidilao-haidilao-s
(15) F. Warren McFarlan, Zheng Xiaoming, Ziqian Zhao, The Haidilao Company Porter Value
Chain Analysis & Solution/ MBA Resources. Available at:
https://embapro.com/frontpage/portervaluechainanalysis/14898-haidilao-haidilao-s
(16) F. Warren McFarlan, Zheng Xiaoming, Ziqian Zhao, What is PESTEL / PEST / STEP
Analysis? How you can use PESTEL Analysis for The Haidilao Company. Available at:
https://embapro.com/frontpage/pestelcase/14898-haidilao-haidilao-s
(17) PHÂN TÍCH CHIẾN LƯỢC MARKETING CỦA HAIDILAO. Available at:
https://www.navee.asia/kb/chien-luoc-marketing-cua-haidilao/
(18) Dieu Linh Nguyenova,2020, A study on the significance of core competencies in

enhancing customer experience. Available at:
https://research-api.cbs.dk/ws/portalfiles/portal/62173562/881489_Master_Thesis_NDL.pdf.
(19) Aligned Interest and Discipline Management - The Key to Haidilao's High Quality
Growth. Available at :
https://www1.hkexnews.hk/listedco/listconews/sehk/2018/0926/a15334/ehih-20180516-17.pdf
(20) Haidilao International Holding Ltd: About Haidilao. Available at:

https://www.haidilao.com/sg/about/brand
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Quản Trị Học (Trường Đại học Ngoại thương)

Studocu is not sponsored or endorsed by any college or university

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6.3. Consumer Protection Laws 13

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2.1. Inbound Logistics 26

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I/ MACRO ENVIRONMENT (PESTEL)

1.1. Government stability

1.2. Tax policies

1.3. Competition regulations

1.4. Trade blocs

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2.1. GDP trends and rate of economic growth

2.2. Inflation Rate

2.3. Government Spending

2.4. Demand Shifts from Goods Economy to Service Economy

2.5. Interest rate

2.6. Unemployment rate

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3.2. Education level

4.1. Technological infrastructure

4.2. Internet penetration

4.3. Investment in R&D

5.1. Environmental regulations

5.2. Waste management

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5.3. Customers’ awareness

5.4. Renewable technologies

Some countries offer subsidies to stimulate investment in renewable technologies → Business

6.1. Business Laws

6.3. Consumer Protection Laws

6.4. Employment Protection Laws

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6.5. Intellectual Property Rights Protection

6.6. Health & Safety Laws

II/ MICRO ENVIRONMENT (PORTER’S 5 FORCES)

1. RIVALRY AMONG COMPETING SELLERS

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(Haidilao Global Offering, page 5)

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(Haidilao Global Offering, page 212)

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(Source: National Bureau of Statistics, Frost & Sullivan Analysis)

- Buyer cost of switching to competing products is low.

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1.1. Name <Haidilao=

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3. CORPORATE SOCIAL RESPONSIBILITY

3.1. Devotion to communities

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3.2. Bingwen library

3.3. <Beauty in Kindness=

3.4. Jianyang Tongcai Experimental School

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- According to Haidilao's annual report of 2021:

1.2. Physical assets

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