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Strategy
for
Competitive
AdvantageU51035
Porters
generic
Strategies Cost
leadership
Group 1
(Team B)
Students:
Presentation Flow
Identify
Cost
Leadership
Strategies
being used
by CDC
How to implement
Measure with
the benchmark
Costleadershi
p strategy
Cost-leadership strategies
Input
cost
Labour cost
Raw
materials
Econom
ies of
scale
Scale/Size
Sales volume
Experi
ence
Labour
productivity
Learning
curve&
History
Strategies
being used
by CDC
Input cost
Labour
cost
Input cost
Raw
materials
How to
implement
Effect
How to
implement
Effect
Input cost
Other
Input
cost
Economies of scale
Scale/
Size
Economies of
scale
Sales
volume
How to
implement
Effect
Negotiate discounts
Better cost control
Competitive advantage
153
103
27
Caf de Coral
Fairwood
TsuiWah
Supportno.of
stores
300~350
180
60
How to
implement
Effect
Experience
Labour
Productivit
y
Experience
Learnin
g
curve&
History
ExperienceLabour Productivity
Mentorship and Knowledge transfer
Strategy being
used by CDC
Source: CDC CEOs Report
How to
implement
ExperienceExperience curve&
History
Experience
Foundatio
n
First food
processing
plant
50th
restaurant
Caf de
Coral
Managem
ent
Academy
196
8
197
9
198
8
200
0
Y
Unit
Cost
Experience
curve
Building
Central
foodprocessing
plant
200
8
Over 140
restaurants
& 300,000
customer
daily
Now
Yea
r
Cumulative volume of
production
Brand
Benchmark
Maxims
1968
Fairwood
1972
TsuiWah
1977
CafedeCoral
1972
Product/Process Design
Simplifying
menu
Streamin
g the
frontline
operation
flow
Product/
Process
Design
Strategy being
used by CDC
Source form Caf de Carol Annual Report 2011
How to implement
Effect
Independe
nt zone for
packing
deliver
Cafede
Coral
Fairwood
Maximmx
Ranking:
CDC is doing better than
others
Similar to
competitors
Economies of
scale
1st
Experience
1st
Product/Proc
ess
Design
Doingbetter
ROA2013-14
CDC
12.72%
Fairwood
12.12%
TsuiWah
10.77%
References
Caf de Coral. (n.d.). Caf de Coral Home page. Retrieved from Caf de Coral Web site:
http://www.cafedecoralfastfood.com/companyinfo3.php?lang=b5
South China Research Limited. (n.d.). South China Research Limited- Golden age of Hong Kong fast food
chains. Retrieved from South China Research Limited Web site:
http://www.sctrade.com/data/sctoday/20130731104308Eng-Golden%20Age%20of%20Hong
%20Kong%20Fast%20Food%20Chains%20-%20130731.pdf
Standard Chartered. (2013, April 27). Equity research: Fast-food to fine dining. Retrieved from China:
Travel& Leisure- Emerging Companies:
https://research.standardchartered.com/configuration/ROW%20Documents/Fast . (n.d.). - . Retrieved from
: http://www.chiefgroup.com.hk/_upload/pdf1_20140320075750_%E5%B0%88%E9%A1%8C
%E5%A0%B1%E5%91%8A-%20%E6%9C%AC%E5%9C%B0%E5%BF%AB
%E9%A4%90%E5%BA%97%E5%8F%8A%E8%8C%B6%E9%A4%90%E5%BB
%B3%E5%88%86%E6%9E%90.pdf