A TALE OF TWO BUSINESSES

EPC AND ENGLISHRESEARCH ASSIGNMENT

THAN LEK MEI ( 0315538 )KHOO XIN YEE ( 0316180 )

LEE PEI GIE ( 0315653 )

TAYLOR’S UNIVERSITYSCHOOL OF ARCHITECTURE, BUILDING AND DESIGN

FOUNDATION IN NATURAL AND BUILT ENVIRONMENT

Understand the type of market system the businesses are operating :

• To make pricing and production decisions. • To determine whether to enter or leave the industry.

A TALE OF TWO BUSINESSES

Objective :• To evaluate market forces and consumer

behavior in similar industry.• To analyze and compare the different types of

firm competition in a market.

A TALE OF TWO BUSINESSES

Chong Kok Kopitiam

And

Jonker 88 Cafe

A TALE OF TWO BUSINESSES

Chong Kok

Kopitiam

Chong Kok Kopitiam

• Since 1940.• Originated from 5 of Hainan people.• Located in front of Klang KTM Trains Station.• In 1940, first floor : western restaurant; second

floor : motel. • Currently only ground floor running kopitiam

business.

Chong Kok Kopitiam

“My grandfather is the key founder of the business, we are the third generation that carry on the business. The hotel service was provided in those early years, but the business was changed to coffee shop since it is taken over by the third generation. Currently the business is managed by my sister and I.”

Chong Kok KopitiamThe most authentic meal

Original Hainan coffee

Baked charcoal toast with kaya.

Kampong style nasi lemak

Jonker 88 Cafe

Jonker 88 Cafe

• Since 1997• Museum café• Subsidiary of Jia Seng Art Gallery which was incorporated in year of 1986 in Melaka, Jonker Street ( Jalan Hang Jebat ).

Jonker 88 Cafe“I started the museum business in 1986. Our shop provided only souvenir services for tourists.

I had renovated my shop with a lot of museum pieces, antiques and memorabilia displayed throughout the cafe. In 1997, my shop has started to provide food services which is two in one museum café.”

Jonker 88 Cafe

The Most Authentic Meal

Durian Cendol

Baba Laksa

Nyonya LaksaRojak

Comparative Analysis of the Businesses’ Competitive Traits

• Number of competitors.• Brief bios of each business’ top 3 competitors.• Strategies to compete with their competitors.• Obstacles faced by new businesses who wish

to enter the respective markets today.

Jonker 88They suggest that they do not have competitors because their foods are all original and no any other can imitate and copy their food style.

Chong Kok KopitiamEven though selling different kind of foods, the owner of Chong Kok Kopitiam still assumes that mamak stalls and a Bak Kut Teh restaurant around her shop are her business’s competitors. So there are total of 3 main competitors for her business.

Number of Competition

Brief bios of each business’ top 3 competitors.

Jonker 88- Have no competitors.

Chong Kok Kopitiam

1) Seng Huat Restaurant• Well known as one of the restaurant which offers the best among the best Bak Kut Teh in Klang with 31 years of history.

2) Restoran De Salma

3) Restoran Bismillah

Strategies to compete with competitors.

Jonker 88• Good food quality.• Menu variation.• Friendly Service.

Chong Kok Kopitiam• Food variation.• Affordable price.• Prompt and friendly Service.

Obstacles faced by new businesses who wish to enter the respective markets today.

Jonker 88• Creativity. Creativity can come in the form of restaurant design, new dishes and drinks, presentation, and variations on service.

• Preservation of Local Food. Tourists intend to try the local food that they cannot have them in other places.

Chong Kok Kopitiam• Food Quality. Businesses that deliver normal services or food quality will not improve their popularity and network effects. They are encouraged to serve food with ‘signature’ flavours.

• Accessibility. Choose a highly visible location that has a suitable consumer base nearby.

Recommendation

Jonker 881) Always maintain the food quality.• On the first day, the food served was

delightful.• The taste deteriorated on the second day.• Fix the amount of sugar.

Jonker 882) Provide sufficient seats.• Long queue due to self-service concept.

(Customers have to pay and wait for their food at the stall.)

• Some of them have to share table while the others have to stand while eating.

• Thus it is recommended that the seats should be provided.

Chong Kok Kopitiam1) Concern the cleanliness of the restaurant.• Hygiene is the most important criteria of a

business that runs food service.• However, there are plenty of cigarettes butts

on the floor.• Ash tray should be prepared.

Chong Kok Kopitiam2) Renovate.• Coffee shop which has long history insist to

preserve the old architecture .• However, there some disgusting stains on the

wall which seem irremovable.• We suggest that the business should revamp

some part of the restaurant without disturbing the historical environment of the place.

Competitive traits

Jonker 88 Chong Kok Kopitiam

1) Number of competitors.

0 1-3

2) Barrier to entry. Very strong. Strong.

3) Products. Differentiated products.-Cendol (Baba Cendol, E.P.C. Cendol, Durian Cendol, etc.)

-Laksa (Nonya Laksa, Baba Laksa, Laksa Kahwin, Baba Sea-food Laksa etc.)

Differentiated products.- Bun (plain, wholemale or wheat)- Bread (with kaya or butter)

Standardized products.- Hainanese coffee.

Competitive Traits Jonker 88 Chong Kok Kopitiam

4) Pricing power Strong. Power maker. Weaker. Power taker.

5) Other characteristics

- No close substitute product.- Never advertise.

- Have close substitute product.- There is mutual dependence with other restaurants nearby.- Never advertise.

6) Verdict Monopoly Oligopoly

THE END.TAYLOR’S UNIVERSITY

FOUNDATION IN NATURAL AND BUILT ENVIRONMENT

RESEARCH ASSIGNMENT