Harvard Case - Innovating Singapore's Chicken Rice
"Innovating Singapore's Chicken Rice" Harvard business case study is written by Pascale Crama, Chon Phung Lim, Cintia Kulzer Sacilotto, Jovina Ang. It deals with the challenges in the field of Entrepreneurship. The case study is 8 page(s) long and it was first published on : Mar 4, 2021
At Fern Fort University, we recommend that Hawker Chan pursue a strategic expansion plan focused on disruptive innovation and business model innovation to solidify its position as a global leader in the chicken rice market. This strategy will involve leveraging technology, building a strong brand, and establishing a robust supply chain to ensure scalability and sustainability.
2. Background
Hawker Chan, a Singaporean street food stall, achieved international recognition for its renowned chicken rice. The case study focuses on the challenges and opportunities faced by Chan Hon Meng, the founder, as he navigates the transition from a small, local business to a global brand. The success of Hawker Chan?s flagship stall led to the establishment of multiple outlets in Singapore and internationally, raising questions about scalability, brand consistency, and maintaining the essence of the original experience.
3. Analysis of the Case Study
Strategic Analysis:
- Competitive Advantage: Hawker Chan?s competitive advantage lies in its unique, flavorful chicken rice recipe and its association with Chan Hon Meng?s culinary expertise. However, this advantage is vulnerable to imitation and requires a strategic approach to maintain its distinctiveness.
- Market Segmentation: The target market for Hawker Chan is diverse, ranging from local Singaporeans to international tourists seeking authentic culinary experiences. This presents opportunities for market segmentation and tailored marketing strategies.
- Growth Strategy: The current expansion strategy relies on franchising, which poses challenges in maintaining quality control and brand consistency. A more strategic approach is needed to ensure sustainable growth.
Financial Analysis:
- Financing: The initial expansion was primarily funded through personal savings and loans. This approach may not be sustainable for large-scale expansion. Exploring alternative financing options, such as venture capital or angel investing, is crucial.
- Profitability: The profitability of each outlet depends on factors such as location, rent, and operational efficiency. A thorough financial analysis is needed to optimize profitability across the franchise network.
Marketing Analysis:
- Branding: Hawker Chan?s brand is currently associated with its founder and the authenticity of its original stall. Building a strong brand identity beyond this association is essential for global expansion.
- Marketing Strategy: The current marketing strategy primarily relies on word-of-mouth and media coverage. A more proactive and targeted approach is needed to reach a wider audience and build brand awareness.
- Digital Marketing: Leveraging digital platforms, web and mobile applications, and social media marketing can significantly enhance brand visibility and customer engagement.
Operational Analysis:
- Supply Chain Management: Maintaining consistent quality across multiple outlets requires a robust supply chain. This involves establishing reliable sourcing for key ingredients, standardizing preparation processes, and implementing quality control measures.
- Manufacturing Processes: The traditional cooking methods used at the original stall may not be scalable. Exploring alternative methods, such as technology and analytics, to ensure consistency and efficiency is crucial.
- Organizational Structure: As the business grows, a clear organizational structure and cross-functional management are essential to ensure effective communication, coordination, and decision-making.
4. Recommendations
- Disruptive Innovation: Hawker Chan should embrace disruptive innovation by leveraging technology to enhance the customer experience, streamline operations, and expand its reach. This could involve developing a digital platform for online ordering, delivery, and reservations, as well as implementing data analytics to optimize operations and personalize customer interactions.
- Business Model Innovation: Hawker Chan should explore alternative business models beyond traditional franchising. This could include partnerships with established food chains or creating a joint venture to leverage existing infrastructure and expertise.
- Brand Building: Hawker Chan should invest in building a strong brand identity that resonates with its target audience. This involves developing a clear brand message, creating a consistent brand experience across all touchpoints, and leveraging marketing channels to build brand awareness.
- Supply Chain Optimization: Hawker Chan should focus on building a robust and scalable supply chain. This involves establishing strategic partnerships with suppliers, implementing quality control measures, and leveraging technology to optimize logistics and inventory management.
- Financial Strategy: Hawker Chan should explore alternative financing options, such as venture capital or angel investing, to fuel its expansion plans. This requires developing a compelling business plan and pitching to potential investors.
- Global Expansion: Hawker Chan should prioritize strategic expansion into key markets with high growth potential. This requires conducting market research, identifying potential partners, and developing tailored marketing strategies for each market.
- Organizational Structure: Hawker Chan should establish a clear organizational structure with defined roles and responsibilities to support its growth. This involves attracting and retaining talented individuals with expertise in various areas, such as operations, marketing, and finance.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: The recommendations focus on leveraging Hawker Chan?s core competencies, such as its unique recipe and Chan Hon Meng?s culinary expertise, while simultaneously addressing the challenges of scalability and brand consistency.
- External Customers: The recommendations aim to enhance the customer experience by providing convenient access, personalized interactions, and a consistent brand experience across all touchpoints.
- Competitors: The recommendations aim to differentiate Hawker Chan from its competitors by embracing innovation, building a strong brand, and establishing a robust supply chain.
- Attractiveness: The recommendations are expected to increase profitability, expand market reach, and enhance brand value, ultimately leading to long-term growth and sustainability.
6. Conclusion
Hawker Chan has the potential to become a global leader in the chicken rice market. By embracing disruptive innovation, building a strong brand, and establishing a robust supply chain, Hawker Chan can overcome its current challenges and achieve sustainable growth.
7. Discussion
Alternatives:
- Continuing with the current franchising model: This approach may be less risky but could lead to inconsistencies in quality and brand experience.
- Focusing solely on local expansion: This approach may limit growth potential and miss out on opportunities in international markets.
Risks:
- Loss of brand authenticity: Rapid expansion could dilute the brand?s unique identity and authenticity.
- Competition: The chicken rice market is competitive, and new entrants could pose a threat.
- Operational challenges: Expanding operations can lead to logistical and management challenges.
Key Assumptions:
- Consumer demand for authentic Asian cuisine: The recommendations assume a continued strong demand for authentic Asian cuisine, particularly chicken rice.
- Ability to maintain quality and consistency: The recommendations assume that Hawker Chan can maintain quality and consistency across its expanding network.
- Successful implementation of technology: The recommendations assume that Hawker Chan can successfully implement technology to enhance operations and customer experience.
8. Next Steps
- Develop a comprehensive business plan: This plan should outline the strategic direction, financial projections, and key milestones for expansion.
- Secure funding: Explore various financing options, such as venture capital, angel investing, or bank loans.
- Develop a brand strategy: Define the brand message, create a brand identity, and develop a marketing plan to reach target audiences.
- Optimize the supply chain: Establish partnerships with reliable suppliers, implement quality control measures, and develop efficient logistics systems.
- Pilot new business models: Test alternative business models, such as partnerships or joint ventures, to assess their viability.
- Implement technology solutions: Develop a digital platform for online ordering, delivery, and reservations, and leverage data analytics to optimize operations.
- Expand into key markets: Conduct market research, identify potential partners, and develop tailored marketing strategies for each market.
- Build a strong team: Recruit and retain talented individuals with expertise in various areas to support the expansion.
By implementing these recommendations and taking proactive steps to address potential risks, Hawker Chan can successfully navigate its growth journey and solidify its position as a global leader in the chicken rice market.
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Case Description
This case is set in November 2020. Lao Hung Jia (LHJ) was a progressive chicken rice hawker stall that had embraced digital transformation and open innovation from e-retailing, e-payment, e-distribution to e-marketing. Even though these digital transformation initiatives had helped LHJ improve its customer service, productivity had remained an issue, especially when 50 percent of a hawker's work was spent on food preparation. CK Ng, the son of the founder of LHJ, reached out to the Food Innovation and Resource Centre (FIRC) at Singapore Polytechnic to conduct R&D to develop pre-mixed and pre-packaged sauces so that cooking chicken rice could be simplified. When the R&D at the FIRC was completed, Ng went to Sin Hwa Dee, a local sauce and paste manufacturer, to further develop and batch manufacture these three sauces, namely, the chicken stock, soya sauce and chilli sauce. Sin Hwa Dee was able to replicate the chicken stock and soya sauce, but it could not do so with the chilli sauce as the food retort production method used had altered the taste, colour and texture of the chilli sauce. Ng did not want LHJ to remain as a single chicken rice hawker stall. He had envisioned a LHJ franchise and dreamed about serving LHJ's chicken rice in vending machines or unmanned stalls so that more people in Singapore and abroad could savour the dish. But all these plans were dependent on getting the pre-mixed and pre-packaged chilli sauce right - without it, many Singaporeans would agree that the chicken rice was 'incomplete'. What should Ng do to make his dreams for LHJ a reality?
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