Little Caesars: Prospects in Hong Kong; A Strategic Analysis of the Food Retailing Industry

Abstract

This paper is primarily a strategic analysis of the Hong Kong fast food market. There is an emphasis on unveiling potential opportunities and threats facing Little Caesars' entry into Hong Kong's fiercely competitive fast food industry. The paper first presents a general environmental scan of Hong Kong, examining how economic, demographic and sociocultural factors affect the quick serve food industry in Hong Kong. Following the general environment scan is an extensive look at emerging food and dietary trends specific to providing evidence of consumer deman4 for Little Caesars' products. Using Porter's Five-Forces Model of Industry Competition, profit and growth potential of the Hong Kong fast food market will be examined as well as the competitive positioning of existing firms in the market.· After thoroughly considering Little Caesars' competitive advantages in addition to examining general environmental factors and the competitive environment of Hong Kong's fast food industry there is evidence of a small niche market opportunity in Hong Kong as well as huge market opportunities across East and Southeast Asia. · The findings of this paper suggest that the continued growth of Asian dairy consumption will likely create a growing demand for high-value, low-cost convenience foods that include dairy products as an integral ingredient. Although certain aspects of Little Caesars' products will invariably have to be localized, the 'Value-Innovation' achieved by the HOT-N-READY low cost and differentiated product line seems to be a viable platform for Little Caesars to compete upon in East and Southeast Asia.