Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

High Proportion Of Chinese Residents With Swot Analysis Add in library

142 Download7 Pages 1,574 Words

Question:

Australian suburbs with a high proportion of Chinese residents, where might you expect to find additional Chatime outlets?

 

 

Answer: 

Introduction

Chatime is a Taiwan based beverage chain offering bubble tea. It has 800 stores across the globe and has 45 stores in Australia. Within a decade, Chatime has experienced significant growth in Australia. It has been found that the social and cultural aspects of the local Chinese population in Australia have contributed in the success of Chatime. Chatime focuses on serving high quality Taiwanese tea using fresh milk. It is trying to capture the Australian mainstream market through positioning Taiwanese tea as healthy and freshly prepared beverage which has distinct aroma and flavor. The capability of Chatime in replicating and providing innovative and reinvented tea beverages have contributed in the success of Chatime. The demand for bubble tea has been increasing in Australia and the health conscious population focuses on beverages which are healthy as well as fresh. In order to address the growing level of competition in the Australian market, Chatime has focused on altering its marketing strategies.

 

 

Swot Analysis

SWOT analysis is a strategic management tool that helps in assessing the internal factors such as strength and weakness of the organization as well as the external factors such as opportunities and threats (Sadler, 2003). In this section, the SWOT analysis will be undertaken for Chatime in order to develop appropriate strategy for ensuring success in the Australian market.

 

 

Strengths

The major strengths of Chatime are listed below:

1.    Chatime uses the natural ingredients of superior quality which do not contains additional preservatives
2.    Chatime does not serve pre-made tea or tea powders.
3.    The company uses fresh milk delivered by the Australian farmers.
4.    The tea served by Chatime has more flavor and fragrance.
5.    It is offering new innovative drinks without affecting the flavor of Taiwanese Tea.

Weaknesses

1.    Chatime is limited to the natural market niche and it has not explored the market beyong the regions where population of Asian people is higher.
2.    The branding strategy of the Chatime has not been effective to attract the target audience as it has failed to communicate the health benefits of fresh pearl tea served at Chatime.
 
Opportunities

1.   Australians are found to be health conscious and loves fresh foods and beverages. Chatime has focuses on serving only fresh beverages which will help in attracting the target market.  
2.    Chatime has focuses on delivering new and innovative beverages on the basis of the local taste and preference which is one of the most important factors of ensuring success in the Australian market.
3.   The Australian market for tea is growing due to its flavor, taste and health benefits.
Threats
4.    One of the most important threats of Chatime is the growing rivalry of shops offering tea beverages in Australian market. The growing intensity of the competition is considered to be a major threat for Chatime (Sadler, 2003).  
5.  Chatime will encounter difficulty in identification of the distinct characteristics of the local market for developing new products which will match with the taste and preference of the local market (Czinkota and Kotabe, 2001).

 

 

Porter’s Five Forces Analysis

Rivalry among the competitors

Rivalry among the competitors refers to the intensity of the competition in the market. It has been observed that the demand for bubble tea is growing in the Australian market. Hence, increasing number of companies is focusing on entering the market (Sheehan, 2011). In the Asian tea market of Australia, the market leader is EasyWay. Additionally, a new brand GongCha has also entered the market. These brands are offering the authentic Asian tea beverage to the Australian market. Hence, it can be found that the rivalry among the competitors is moderately high in the market of Australia.

Bargaining power of suppliers

The major ingredient i.e. tea is exported from Taiwan and there are plenty suppliers for Chatime as the company is based in the same nation. Chatime focuses on using fresh ingredients and the fresh milk is supplied by the Australian farmers. Chatime significantly supports the farmers in Australia. Hence, it can be stated that the bargaining power of suppliers is low in this case (Winer, 2004).

Bargaining power of customers

Bargaining power of customers rises when they have many alternatives (David, 2005). In the Australian market, there are potential shops which are offering authentic Asian tea. The customers can get the similar or superior product from other shops such as EasyWay and GongCha. Hence, the customers can easily switch to other shops on the basis of their preference and the product quality along with the marketing strategy of the company. Hence, the customers have high bargaining power (Jeffs, 2008).  

Threat of new entrants

Threat of new entrants is one of the most important forces which have a significant impact on the business. It has been observed that the Australian market has an inclination for the healthy and fresh food and beverages. The demand for bubble tea is growing in the Australian market due to the presence of the Asian immigrants and the health concerns of Australians. Additionally, it is found that the barrier to entry in the industry is low. Consequently, more number of investors will focus on capitalizing the market opportunity. Hence, it can be stated that the threat of new entrants is high which is not desirable for Chatime.

 

 

Threat of substitutes

Coffee is the substitute of tea. In Australia, coffee is the most popular non-alcoholic beverage (Pennington, 2014). The demand for coffee is significantly high. However, tea is healthier than coffee and the health consciousness among the Australian population is rising. It has been observed that threat of substitute is moderate (David, 2005).

Location for new Outlet of Chatime

The flagship store of Chatime was situated in Hurstville. It was found that more than 47.8% residents were Chinese.  Chatime has more than thirty stores in the metropolitan area of Sydney. The major focus of Chatime is to penetrate the market by adoption of effective strategy. In order to identify the locations of additional Chatime outlets some major factors need to be considered. First of all, the population characteristics need to be analyzed (Kim and Park, 2013). The location of the new outlet must be surrounded by the population of East and South East Asian background, domestic as well as international students and young Asian Australian (Lee and Liao, 2009). Chatime has been competing for the market share. The situational factors also needed to be considered before choosing a location for opening an outlet of Chatime. The location must have a good exposure and easy access. The combination of these two factors is essential for the success of new outlet. In different part s of Asia, tea is one of the most popular leisure beverages (Paganini-Hill, Kawas and Corrada, 2007). It has been observed that the global demand for tea is rising. Chatime has majorly targeted the suburbs market due to the high concentration of the Chinese residents. It basically targets the consumers who are habitual decision makers and seeks convenience (Turhan, Akalın and Zehir, 2013). Hence, shopping centers, near to the movie theatres, food courts, train stations etc will be idea locations for Chatime to open a new outlet (Zhuang et al., 2006). The major reason is these places are convenient for the target market.
 

Conclusion


This paper has provided an insight to the current operations of Chatime in Australia. The SWOT analysis has demonstrated that Chatime has significant strengths which can be capitalized in order to ensure success of the organization. In order to overcome the weakness, the branding strategy of Chatime needs to be improved so that it can efficiently communicate with the target market regarding the health benefits of Taiwanese tea and its flavor. The demand for bubble tea is enhancing across Australia. The bargaining power of suppliers has estimated to be low. The intensity of competition is growing and the bargaining power of customer as well as threat of new entrants is high.

 

 

References


Czinkota, M. and Kotabe, M. (2001). Marketing management. Cincinnati: South-Western College Pub.

David, F. (2005). Strategic management. Upper Saddle River, N.J.: Pearson Prentice Hall.

Jeffs, C. (2008). Strategic management. Los Angeles: SAGE.

Kim, K. and Park, D. (2013). Segmenting Green Tea Consumers by Purchase Motivation in South Korea. Journal of Agricultural & Food Information, 14(2), pp.164-183.

Kotler, P. (2000). Marketing management. Upper Saddle River, N.J.: Prentice Hall.

Lee, C. and Liao, C. (2009). The effects of consumer preferences and perceptions of Chinese tea beverages on brand positioning strategies. British Food Journal, 111(1), pp.80-96.

Paganini-Hill, A., Kawas, C. and Corrada, M. (2007). Non-alcoholic beverage and caffeine consumption and mortality: The Leisure World Cohort Study. Preventive Medicine, 44(4), pp.305-310.

Pennington, S. (2014). Meet Australia's coffee pod tycoons. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/small-business/entrepreneur/meet-australias-coffee-pod-tycoons-20140829-3ek33.html [Accessed 9 Jan. 2015].

Sadler, P. (2003). Strategic management. Sterling, VA: Kogan Page.

Sheehan, B. (2011). Marketing management. Lausanne, Switzerland: AVA Pub.

Turhan, G., Akalın, M. and Zehir, C. (2013). Literature Review on Selection Criteria of Store Location Based on Performance Measures. Procedia - Social and Behavioral Sciences, 99, pp.391-402.

Winer, R. (2004). Marketing management. Upper Saddle River, NJ: Prentice Hall.

Zhuang, G., Tsang, A., Zhou, N., Li, F. and Nicholls, J. (2006). Impacts of situational factors on buying decisions in shopping malls. European Journal of Marketing, 40(1/2), pp.17-43.
OR

MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.

Most Downloaded Sample of Management

277 Download1 Pages 48 Words

Toulin Method Of Argumentation

You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
202 Download9 Pages 2,237 Words

Consumer Behavior Assignment

Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
368 Download13 Pages 3,112 Words

Internet Marketing Plan For River Island

Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
328 Download9 Pages 2,203 Words

Strategic Role Of HR In Mergers & Acquisitions

Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
357 Download7 Pages 1,521 Words

Relationship Between Knowledge Management, Organization Learning And HRM

Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
Next
Free plagiarismFree plagiarism check online on mobile
Have any Query?