(a) Analyse the strengths, opportunities, and threats to assess the strategic position of Ipoh

Kopitiam.

weaknesses, opportunities and threats.

SWOT analysis is a framework
used to evaluate a company's competitive
position by identifying its strengths,
Specifically, SWOT analysis is a
foundational assessment model that
measures what an organization can and
cannot do, and its potential opportunities
and threats.
SWOT analysis is a basic, analytical
framework that assesses what an entity —
usually a business, though it can be a place,
industry or product — can and cannot do,
for factors both internal and external. Using
environmental data to evaluate the position
of a company, a SWOT analysis determines
what assists the firm in accomplishing its
objectives, and what obstacles it must
overcome or minimize to achieve desired
results: where the organization is today, and
where it may go.

SWOT of IPOH KOPITIAM

Strengths
 Product differentiation: Ipoh Kopitiam successfully distinguishes their products in the
global market by offering uniqueness and specialty of their products, in terms of innovative
fusion menu that mixes western and eastern ingredients.
- Provides fusion cuisine
- Introduce something new to customers – Along with desire for familiarity, people carve
new experience. For instance, you are biting into a classical burger, but with Asian 5
spices introduced; or enjoy the familiarity texture of grilled chicken, but with delicious
Thai flavours.

 Good branding:
- Creative advertising, marketing and promotion strategies.
- Ways: engaged local celebrities, online discount vouchers, won culinary competition
- Organised kitchen challenge competition to select talented chefs.

 Wise management:
- Actively involves in CSR & embeds the culture of giving in its management.
- E.g. Charity Marathon Run: employees and outsiders having chance to engage with
each other. (build bonding while doing charity)
- Maintain good hygiene in both personal and environment (represents an important
element particularly for food & beverage industry)
Opportunities
 Vast Expansion: Well-known full service restaurant in Malaysia with:
- Rapid growth through franchising
- over 200 outlets nationwide
- 5 oversea new ventures in Indonesia, Singapore, Australia.
- It can acquire new market shares around the world with expansion globally.
- Since there is limited market in one region if it only operates in Malaysia.

 Changing of Malaysian lifestyle urges the demand for dining out especially the dual-
income family.
- Convenience of saving time and energy in preparing meals.
- Nowadays, food is consumed not only for survival, but also for higher-order purposes
(convenience, health, entertainment)
- Reason: Dual-income family is having -
o Higher purchasing power
o More money to spend on dining outside
o Less/no time to prepare food

 Growing economy in Malaysia

- offers high growth potential
- In this case, people are having jobs and thus possess higher disposable income which
encourage them to spend more on outside food.

 Emerging market shares:

- Gain 40% market shares in 2013.
- Able to turn its internal strengths and competencies into competitive advantage.
- Provide unique and high quality fusion food.

Threats
 The industry and market is saturated and fragmented with many foreign and local
competitors of all sizes.
- Since demand increases, more and more new entrants come into the market in order to
gain market shares.
- Increasing new entrants enter into the industry will raise the bargaining power of
customers as well.
- When customers in the market are powerful, they can determine the price paid for the
sellers. This indicates that the customers may choose among the numerous restaurants
which can provide similar food and beverage for lower price.
- This situation will worsen off due to the intensive price war among the competitors.
- Sensible pricing is essential for business; however, price wars can be disastrous and
usually mean that everybody loses.
In conclusion,
 While most restaurant consumers are price-conscious, they are not only focused on
consumer cost.
 Restaurants that are perceived as providing a higher-value offering are more likely to
succeed than those that are just inexpensive.
 Customers have demonstrated a willingness to pay a little bit more for a meal that is
significantly higher quality or has health benefits.
 Therefore, Ipoh Kopitiam is recommended to continue serving unique and differentiated
and high quality fusion food in order to maintain existing customers and attract new market
shares in both locally and globally. By providing differentiated or unique products, Ipoh
Kopitiam might stand out from its competitors.