Research On Competition Strategy Of Chinese Fast-Food Business In XWH Group

After the reform and open policy, Chinese economics has experienced a fast-paced development, which was never seen before. Different industries are developing very fast in this tide. During this period, fast food industry has established an obvious development, growing 10% more than last year in the sales in a row of 20 years. Xiwenhua Group was founded in this background. In the last 20 years, Xiwenhua Group has changed from a middle-upper brand into a popular style catering enterprise. Before the eight regulations, the catering income was highly relied on the several Xiwenhua restaurants, which were aimed at middle-upper levels. However, in 2012, the eight rules obstruct the business of middle and upper restaurants. The Xiwenhua Group wisely changed the strategy into popular market, benefiting from the general customers. And it created the brand of Hejiale Chinese Fast food. This alteration complied with the market and was a good decision for the enterprise to prevent the "cold wave". However, there are still some problems in the development process. Compared with KFC, Dicos and some other western fast-food companies, which have great market share and successful operation management, Xiwenhua is still weak in the sales, brand, and operation process. And the competitive capacity and management system require some improvement. The key point to solve those problems are to make a suitable and reasonable competitive strategy, and form its own competitive advantages.According to the related theories of Strategic Management, I use PEST analysis, Michael Porter five forces model, and SWOT matrix analysis to research the external environment and internal capabilities of Xiwenhua Group. Differentiation is made as the competitive strategy for this enterprise. Operation, marketing, services and human resource are the four key categories to analyze and implement the differential strategy. The differential competitive stragety would enable the Xiwenhua Group to seize the opportuinities and utilize its advantages to develop the Hejiale Chinese Fast-food and improve its own competitive advantages. At the same time, this strategy could provide some new ideas and references for some other similar Fast-food enterprises.The innovations include:1, Based on the research and control of the industrial development, I come up with the differential competitive strategy on the foundation of cost control. It would both build a core competitiveness and developing advantage of the Hejiale Chinese Fast-food of Xiwenhua Group, and provide a good reference for the strategy making and implementation of similar business.2, After researching the necessity and possibility of taking differential competitive strategy for the current Chinese fast food enterprises, I state four methods (Brand Promotion, Quality Improvement, Products Mix Optimization, and Better Services) to add the value for the customers. Those would enable the Chinese Fast-food enterprises to build advantages of differential Competition.In the compiling of the treatise, many first-hand materials were collected from various channels. Because of the business secret, some information was restricted to get. In addition, the interviewee’s personal opinions may affect the objectivity of the whole information. In a summary, the strategies are based on the current information, which, somehow, may exist some unneutrality and limitation.