Harvard Case - Going Digital? Mission Possible: Hawkers United - Dabao 2020's Takeaway from the Pandemic Fallout
"Going Digital? Mission Possible: Hawkers United - Dabao 2020's Takeaway from the Pandemic Fallout" Harvard business case study is written by Yi Meng Lau, Siaw Ling Lo, Thomas Lim. It deals with the challenges in the field of General Management. The case study is 8 page(s) long and it was first published on : Oct 28, 2020
At Fern Fort University, we recommend that Hawkers United adopt a digital transformation strategy focused on building a robust online presence and leveraging technology to enhance customer experience, streamline operations, and drive sustainable growth. This strategy should encompass a multi-faceted approach, integrating digital marketing, online ordering and delivery, data analytics, and customer relationship management (CRM) systems.
2. Background
Hawkers United, a vibrant network of street food vendors in Singapore, faced a significant challenge during the COVID-19 pandemic. The enforced social distancing measures and closure of physical dining spaces led to a dramatic decline in foot traffic and revenue. This case study explores how Hawkers United can adapt to the 'new normal' by embracing digital transformation, ensuring their survival and future growth.
The main protagonists are the Hawkers United leadership team, including the founders, key stakeholders, and individual hawkers. They need to navigate the complexities of digital adoption while maintaining the essence of their traditional street food culture.
3. Analysis of the Case Study
The case study presents a compelling scenario where traditional businesses face the urgent need for digital transformation. We can analyze the situation using a combination of frameworks:
SWOT Analysis:
- Strengths: Hawkers United boasts a strong brand reputation, loyal customer base, and established food quality.
- Weaknesses: Lack of digital infrastructure, limited online presence, and dependence on physical foot traffic.
- Opportunities: Growing online food delivery market, potential for expanded customer reach, and the ability to leverage technology for operational efficiency.
- Threats: Increasing competition from established food delivery platforms, potential for technological disruptions, and the need to adapt to evolving consumer preferences.
Porter's Five Forces:
- Threat of New Entrants: High, as the online food delivery market is attractive to new players.
- Bargaining Power of Buyers: Moderate, as consumers have a wide range of options available.
- Threat of Substitutes: High, with various food delivery platforms and alternative dining options.
- Bargaining Power of Suppliers: Moderate, as Hawkers United relies on suppliers for ingredients and equipment.
- Competitive Rivalry: High, with existing players and new entrants vying for market share.
Digital Transformation Framework:
- Customer Experience: Focus on enhancing the online ordering and delivery experience, offering personalized recommendations, and providing seamless customer service.
- Operations: Streamline operations through efficient inventory management, optimized delivery routes, and automated order processing.
- Data Analytics: Leverage data to understand customer preferences, identify trends, and make informed decisions about menu offerings and marketing strategies.
- Technology: Invest in user-friendly online platforms, mobile apps, and payment gateways to facilitate a smooth digital experience.
4. Recommendations
Hawkers United should implement the following recommendations to achieve a successful digital transformation:
1. Develop a Comprehensive Digital Strategy:
- Create a dedicated digital team: Hire or train individuals with expertise in digital marketing, e-commerce, and technology.
- Build a robust online presence: Develop a user-friendly website and mobile app for online ordering and delivery.
- Integrate with food delivery platforms: Partner with established platforms like GrabFood, Deliveroo, and Foodpanda to expand reach and customer base.
- Implement a CRM system: Track customer data, preferences, and order history to personalize marketing efforts and improve customer service.
2. Enhance Customer Experience:
- Offer a seamless online ordering experience: Ensure a user-friendly interface, clear menu descriptions, and multiple payment options.
- Provide accurate and timely delivery: Optimize delivery routes, partner with reliable delivery services, and offer real-time order tracking.
- Focus on customer service: Respond promptly to inquiries, address complaints efficiently, and build a strong online reputation.
3. Leverage Technology for Operational Efficiency:
- Implement inventory management systems: Track stock levels, minimize waste, and ensure efficient procurement.
- Optimize kitchen operations: Use technology to streamline food preparation, improve efficiency, and maintain food quality.
- Automate order processing: Integrate online ordering systems with kitchen and delivery operations for seamless order fulfillment.
4. Embrace Data-Driven Decision Making:
- Collect and analyze customer data: Use data to understand customer preferences, identify popular dishes, and tailor marketing campaigns.
- Monitor performance metrics: Track key performance indicators (KPIs) such as order volume, customer satisfaction, and revenue growth to assess the effectiveness of digital initiatives.
- Use data to inform future decisions: Continuously refine the digital strategy based on insights derived from data analysis.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The digital transformation strategy aligns with Hawkers United's mission to preserve traditional street food culture while adapting to evolving consumer preferences.
- External customers and internal clients: The recommendations cater to the needs of both external customers seeking convenient food delivery and internal clients (hawkers) seeking to enhance their business operations.
- Competitors: The strategy aims to position Hawkers United competitively by leveraging technology to differentiate themselves from other food delivery platforms and traditional street food vendors.
- Attractiveness - quantitative measures: The digital transformation strategy is expected to increase revenue, expand customer base, and improve operational efficiency, ultimately leading to a positive return on investment.
6. Conclusion
By embracing digital transformation, Hawkers United can overcome the challenges posed by the pandemic and emerge stronger than ever. A comprehensive digital strategy focused on customer experience, operational efficiency, and data-driven decision making will enable them to thrive in the evolving food delivery landscape.
7. Discussion
While the recommended digital transformation strategy offers a robust path forward, alternative approaches could be considered:
- Focus solely on partnering with existing food delivery platforms: This approach could be less expensive but would limit control over branding and customer experience.
- Develop a standalone digital platform: This approach would offer greater control but requires significant investment and expertise.
The key assumptions underlying the recommendations include:
- Consumer demand for online food delivery will continue to grow.
- Hawkers United can successfully adapt to the digital environment.
- The necessary technology and expertise will be available to support the digital transformation.
8. Next Steps
To implement the recommended digital transformation strategy, Hawkers United should follow these steps:
- Phase 1 (Short-term):
- Establish a digital team: Hire or train individuals with relevant skills.
- Partner with food delivery platforms: Integrate with existing platforms to expand reach.
- Develop a basic online ordering system: Create a website or app for online ordering.
- Implement basic data tracking: Start collecting customer data and order history.
- Phase 2 (Medium-term):
- Develop a comprehensive digital strategy: Define long-term goals and objectives.
- Invest in advanced technology: Upgrade online platform, CRM system, and inventory management tools.
- Build a strong online brand identity: Develop marketing campaigns and content to attract customers.
- Expand online ordering and delivery services: Offer wider menu options and delivery areas.
- Phase 3 (Long-term):
- Continuously innovate and adapt: Stay abreast of technological advancements and evolving consumer preferences.
- Develop a sustainable growth strategy: Expand operations, explore new markets, and diversify revenue streams.
By taking these steps, Hawkers United can successfully navigate the digital landscape, ensuring their survival and future growth while preserving the essence of their traditional street food culture.
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Case Description
Second-generation hawker Melvin Chew decided to set up the Hawkers United - Dabao 2020 Facebook group after the Singapore government announced that dining in at hawker centres, and all other food and beverage (F&B) establishments would be banned, following the imposition of the circuit breaker (partial lockdown) on April 7, 2020, in view of the worsening Covid-19 pandemic in Singapore. The group would allow hawkers to post their offerings, promotions, and takeaway or delivery options. Customers could also join it to pre-order food from these hawkers. The key reasons for Chew's decision to start the Facebook group included his desire to help his fellow hawkers, the need to devise alternatives to food delivery platforms that charged prohibitive commissions, and the necessity to save the hawker trade. There were however several barriers preventing hawkers from going digital, such as practical difficulties encountered when trying to adopt digital tools, as well as digital and verbal illiteracy among the more elderly hawkers. Nonetheless, various players in the ecosystem like the government, delivery platforms and software developers have stepped in to help coax hawkers to embrace digitalisation through various initiatives.
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