Urban Soup Kitchen Case
This report is to provide an analysis for The Soup Spoon to go in the Shanghai healthy and casual dining industry using the Michael Porter forces model. However, this report only consists of 3 forces out of 5 forces of the Michael Porter model. Research is conducted on the Shanghai healthy and casual dining industry to analyse the level of competition and profitability of the industry.
Power of buyers is classified into 4 points- Population, Disposable income, middle class and health-conscious buyers. Overall, the power of buyers is low.
• Population – Shanghai is the most populous city and it will continue to grow and the industry will have a huge market and less influence for price.
• Disposable income – China disposal income is increasing every year since 2004 and is expected to increase. Thus they will less price sensitive and are willing to pay more for premium product.
• Middle Class – Middle class income is still increasing and they are willing to pay for premium products and are less price sensitive and
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Urban soup kitchen brand portrays a multi-culture, urban, and modern image and serves good healthy comfort food. They currently have 4 outlets around Shanghai, and they have urban club where members can be the first to receive the restaurant’s monthly refreshed menu, latest promotions, coupons, happenings and other goodies. The menu is also very similar to the industry as is also serves soups, sandwich and salads. They also serve healthy foods with quality ingredients, making it similar to the industry. Since there are no loyalty programs such as giving stamps for every purchase or having a member card such as discounts, there will be a low switching cost. Since they are within the same industry and they have similar menus, but is not very establish as they only have 4 outlets around Shanghai the rivalry will be
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