Basic Project 4

Project Title:

The Danish Fairytale: Entering the Danish Pan­Asian restaurant market

Group:

Peter 55639 Minsol 55741

Supervisor: Özge Cokpekin

Deadline: 25.05.2016

Number of characters: 126,564 Number of Pages (incl appendices): 82

Abstract

When enter a new market, what do companies take into consideration to open

their businesses? In order for new entrants, companies need to search the market in

advance to assess whether the market will be favorable or unfavorable to their

companies. An environment of market is formed by its external factors, which can give

negative or positive impact on one’s business directly or indirectly. Without

understanding or analyzing of the market where the business operates in, it will be

challenging to cope with the environment and its unfavorable factors. With this premise,

this paper has investigated the competitive attractiveness of the Danish Pan­Asian

restaurant market, to advise new companies to identify the environment of the Danish

market is favorable or unfavorable when they face a set of external factors with

assessing the internal factors.

The findings, show that new companies must develop their unique selling point,

as the substitute threat is high for smaller individual restaurants in the Pan Asian

industry. On the contrary, the findings of the market investigation shows that among

more established restaurants­chains such as Sticks’N’Sushi and Wagamama there is a

potential for growing and competing. Thus in order for new companies to get there, they

must be able to adapt and anticipate to new market conditions from which to build up the

awareness brand, need for the product and secure customer loyalty e.g by embracing

customer values.

1

Table of content Abstract…………………………………………………………………………………...1

Chapter 1 Introduction………………………………………………………………….4

1.1 Field of interest………………………………………………………………..4

1.2 Problem area………………………………………………………………….5

1.3 Problem Statement…………………………………………………………...5

Chapter 2 Methodology…………………………………………………………………6

2.1 Sticks’N’Sushi and Wagamama……………………………………………..6

2.2 Choice of methods…………………………………………………………….6

2.3 Outline of the paper…………………………………………………………..10

2.4 Data options and selection of sources……………………………………...11

2.5 Review of empirical data……………………………………………………..12

2.6 Limitations and evaluation of the paper………………………………….....14

Chapter 3 Theoretical considerations………………………………………………..14

3.1 PESTLE analysis……………………………………………………………...15

3.2 SWOT analysis………………………………………………………………..16

3.3 Porter’s five forces…………………………………………………………….17

3.4 Service marketing mix ­ 7Ps concept……………………………………….20

3.5 Brand recognition……………………………………………………………...22

3.6 Product Life Cycle……………………………………………………………..22

Chapter 4 Sticks‘n’Sushi and Wagamama…………………………………………...23

4.1 Company description of Sticks‘n’Sushi……………………………………...23

4.2 Company description of Wagamama………………………………………..31

Chapter 5 Analysis of Danish market and companies……………………………..37

5.1 PESTLE analysis (the danish market) SNS,Wagamama………………….38

5.2 Porter’s five forces analysis (the industry) SNS,Wagamama……………..47

5.3 SWOT analysis ­ SNS, Wagamama………………………………………….57

Chapter 6 Discussion and the 4p’s analysis………………………………………...61

6.1 What actions to take………………………………………………………….61

2

6.2 Sum up………………………………………………………………………….67

Chapter 7 Conclusion……………………………………………………………………68

Bibliography………………………………………………………………………………..70

Appendix A

Appendix B

Appendix C

3

Chapter 1. Introduction This paper aims to investigate the Danish market by using a set of marketing

concepts and analyzing two cases of companies/restaurants, which were established

and open in Denmark that inspired by Sushi and Pan­Asian food products. Our initial

interest was in the increased popularity of suchi­product across the world. With this

interest we started looking at how sushi became globally and what was a significant role

in introducing the product worldwide.

Through investigation, we found that some restaurants attempted to combinate

and developed Pan­Asian­food products with their own ways and concepts. This

interested us to look into the market within those restaurants. The objective of executing

this project is to analyze the specific market to create a strategic marketing plan for new

companies to understand the circumstance and factors exist within the market. To

investigate, a set of conceptual frameworks were required to analyze the market of

external factors and internal competence of companies.

1.1 Field of interest

We chose two companies Sticks and Sushi (SNS) and Wagamama because

those two companies deal in Pan­Asian­food products in western countries, appear to

pay off in the Danish market. One with selling sushi and sticks with a variety of meat and

fish has become one of the largest Japanese restaurants in Denmark. The other, selling

noodles and Pan­Asian food from U.K is also prominent. These are key players that

have introduced Asian­food products in the Danish market.

This motivated us to explore and analyze how they seem successful within the

environment of the Danish market. This research will help new companies, which desire

to open their new businesses or bring their products into the Danish market to expand

their businesses, take into consideration when they research the market and what

factors could possibly impact on their businesses, and further we plan to advise new

entrants what possible actions they could take to cope with the external environment with

an assessment of internal factors.

4

1.2 Problem Area

When entering into new market, whether in the form of starting a new business

from scratch or expanding an already established company, managers must accurately

perform an assessment of the potential of both the external capabilities, the market, as

well as the internal capabilities, the business, in order to make most use of the growth

opportunities whilst being aware of the risks. (Daft, 2014)

With the in­depth knowledge gained from assessing the market, new companies

can select potential markets to enter, develop their business strategy, their market entry

options etc. all of which can make the way for success. (Ibid)

Yet, as every business are different in terms of the services and the products that

a business may offer, and the threat of new competitive entries are ever looming, every

business may constantly need to take into considerations the process of developing the

strategy for growth in order to best adapt to a variety of situations and to survive.

1.3 Problem statement

The paper aims to investigate the state and market potential of the Pan­Asian

restaurant industry in Denmark, as well as aiming to assess how new companies who

want to enter the Danish market may be advised. Thus, the paper poses the following

research question.

How to enter the Danish Pan­Asian restaurant market?"

Additionally throughout the paper the following sub questions will be answered.

1­ What is the current business environment in regards to the Pan­Asian restaurant

industry?

2­ What are the possible actions to take for new companies wanting to enter the market?

5

Chapter 2 Methodology This chapter aims to explain methodological consideration and methods that will

be used in this paper. This involves research design, choice of methods, and selection of

sources. This is important for readers to know, as it considers what scientific methods

and approaches have been applied in this paper. The purpose of the chapter also

consists of guiding the readers to understand the way the researchers have approached

answering the research question and working questions.

In addition, it presents the backdrop of the data used and evaluates on the

process of collecting and assessing the data. Additionally, the chapter also explains the

limitations and considerations regarding working process with the paper.

2.1 Sticks’N’Sushi and Wagamama

In order to consult new companies who wish to enter the Danish Pan­Asian

restaurant market, the paper takes SNS and Wagamama as the point of departure for

the analysis carried out. Both companies are considered to be major players in the

Pan­Asian restaurant industry, with strong brand recognition both nationally ­ in Denmark

­ and internationally.

More specifically SNS, in the sushi dining industry, and Wagamama, in the noodle

and rice dining industry. However, as mentioned the industry has over years past grown

in popularity and has established a foothold in the Danish market over the past 20 years.

2.2 Choice of methods The following sub­section elaborates on the philosophical

scientific research methods and considerations.

2.2.1 The role as researchers

Following the objective and research question of the paper, we position our self as

researchers in the role as consultants or as a new company who wants to enter the

danish market.

6

2.2.2 Desk research approach (Paul, 2006: )

The process of collecting data and background information carried out can be

referred to as a desk research. The key sources that a desk research uses are

secondary sources is refers to a research where the data collection happens on the

basis on existing resources where much information can be accessed and obtained from

libraries, online databases or online on the internet e.g. company web sites etc.

A desk research, through the use of secondary data, has the ability to carry out an

analysis of several factors such as, Company profiling in terms of assessing company

size, financial performance, products, customers, and Products in terms of

characteristics of the products and services offered by the company

Market size and trends based on statistics, press etc (Paul, 2006: )

In this case, the paper mainly carries out an online desk research in collecting

empirical data about the two companies SNS and Wagamama, upon which forms the

basis of answering the research question.

2.2.3 Qualitative methods

In terms of the choice of methods, the paper will mainly be employing a deductive

qualitative approach, as it means to answer the questions posed in the paper.

Qualitative methods enables the researchers to understand, explore and portray a single

social phenomenon or concept. The findings of qualitative research often does not

provide definite answers, but the findings opens up for a further discussion or research to

be carried out, and thus Qualitative methods enables the researcher to reflect to the

phenomenon and findings, but also in terms of evaluating the usability of theories,

concepts and models utilized in the process. (Cresswell, 2014)

The paper uses qualitative methods as a mean to assess the current Danish

market environment, through the application of established conceptual frameworks, and

the empirical data collected about the two companies. Going forward, the deductive

7

qualitative approach, allows the paper to establish a deeper understanding of how new

companies trying to enter the Danish Market, should be advised.

2.2.4 Epistemology

An epistemology refers to in Guba and Lincoln (1998), is a philosophical belief

system about who can be a knower (Cited in “The practice of qualitative research”,

Hesse­Biber & Leavy, 2004: 4). Positioning the form of philosophical basis of a research

project, this philosophical foundation gives impacts on every aspect of the research

process, including topic selection, question formulation, method selection, sampling, and

research design (Hesse­Biber & Leavy, 2004: 4­ 5). To be simplified, epistemology is the

study of learning, an account of how the process of cognition appears to the researcher

(Nygaard, 2005:11).

We consider epistemology and knowledge as a subjective interpretation because

reality is created through social actions, which are complex and needs to be interpreted

to be understood. In this point, knowledge in itself is the foundation of writing this paper.

If we have no knowledge, there will not be a reality to discuss and construct. Our

knowledge in this context is about the Danish market. We have collected a set of data in

terms of the Danish market, and theories, which are chosen to analyze the market

planning to be investigated. Through this process, our knowledge is constructed based

on our subjective interpretation. Epistemology therefore appears to be subjective

because it includes how the relationship between the researcher and the research itself

is understood (Hesse­Biber & Leavy, 2004: 13).

2.2.5 Ontology

An ontology is a philosophical belief system about the nature of social reality­

what can be known and how (Hesse­Biber & Leavy, 2004: 4). Ontology refers to the

study of the being as being, meaning that we acknowledge reality that exists and being

thought to exist. The way we acknowledge reality, the ontology, is crucial and influence

how reality is recognized in a certain way. Questioning whether the social world is

8

patterned or predictable, or the social world continually being constructed through human

interactions and rituals makes a distinction between two very different ontological

perspectives (Ibid). Thus, the recognition of reality is important to understand the social

world and the way how we accept.

Social reality exists within a society, which is constructed through human

interactions. We recognize reality by looking into the Danish market and industry where

exist within a danish society. In assumption, if we can recognize reality of the Danish

market within its environment, it will help us analyze the Danish market as a whole. By

analysing the market with a set of theories or concepts, the process allows us to

recognize how the danish market appears to be existing. With these assumptions, we

created our research questions and working questions to looking into the reality of social

world and specifically the market of denmark we investigate in.

2.2.6 Inductive approach

Our objective of this paper is to investigate the Danish market in order to help new

companies, who desire to open businesses in Denmark. With this purpose, we decided

to follow an inductive approach, which is usually emphasized in interpretive and critical

belief systems, and aiming to generate a theory or idea directly from out of data

(Hesse­Biber & Leavy, 2004: 5).

The inductive approach usually focuses on a specific problem or data to a general

idea or theory that are generated in the end of research process. Our focus is, as

mentioned, the two companies SNS and Wagamama. This choice was to investigate the

danish market by looking at these companies’ performance and management. Those

companies appear to be successful in Denmark as selling and dealing with Asian­food

products, developing the products in their own way. Because of its prominent success in

the market, we chose them to take as examples for new entrants. Through analyzing the

environment, industry of danish market, and those companies’ internal factors, we aim to

understand the Danish market and what factors or actions could be favorable or

unfavorable. As mentioned above, we, in the end, attempt to generate an idea, which

9

gives new companies to take into considerations when they start businesses in the

Danish market.

2.3 Outline of the paper

The paper has been arranged into a composition of seven chapters, with each chapter

having its own objective within the topic of the research question. Thus the following

outlines the structure of the paper in order to carry out comprehensive assessment of the

Danish market, the industry and to answer the research question.

Chapter one introduces the purpose of the paper by outlining the point of departure and

reason for writing the paper. Moreover, it presents the research question and working

questions, which forms the overall guideline and direction of the paper.

The second chapter presents the methodological considerations regarding the research

process framework carried out. In detail, the chapter assesses the quality of the research

in terms of data collection, the scientific approach to conducting the research paper.

Chapter three facilitates the theoretical considerations and presents the means by which

the paper approach answering the research question. In detail, the chapter presents the

ways in which the empirical data collected is expected to be utilized based on the chosen

frameworks.

The fourth chapter is about describing the two companies chosen to exemplify the

Danish market, and the Pan­Asian restaurant industry. The 7p’s ­marketing Mix, will be

applied in order to facilitate a comprehensive presentation of the companies. Thus the

chapter elaborates on the internal environment of SNS and Wagamama.

Chapter Five provides the analysis of the macro environment and the external market

context from which SNS and Wagamama are involved in. Additionally, the chapter firstly

10

investigates the Danish Market through the PEST analysis framework, and secondly

examines the attractiveness of the Pan­Asian restaurant industry through Porter’s Five

Forces. The findings of the Five Forces framework will also be utilized to support an

assessment of the opportunities or implications of entering the industry with a new

product or service e.g. already established or new companies.

Thirdly the chapter will make use of the SWOT analysis in relation to SNS and

Wagamama.

The SWOT analysis section has been put to use, as the framework identifies both

strengths and weaknesses of a company, both internally and externally. Hence, by

carrying out a SWOT analysis, the aim is to investigate the position of SNS and

Wagamama, as well as providing knowledge as answering the research and working

questions.

Going forward, chapter six aims to evaluate and discuss what possible actions

new companies or firms within the Pan­Asian restaurant industry may take in order to be

able to compete with the likes of SNS and Wagamama.

Finally, chapter seven stands for the conclusion and follows up by answering the

research question posed in the introductory chapter. The conclusion also puts forward

ways in which to progress for further investigations in relation to the subject matter.

2.4 Data options and selection of sources

There are many types of data to consider, when doing research. This sub­section

explains the choice of selecting of sources that are required to best enable answering

the research question of the paper.

Primary Sources are first hand information with regard to an event, phenomenon, person

etc. books, visual material, photographs, maps etc. can in most cases all be considered

11

first hand evidence. By conducting surveys, questionnaires or doing interviews,

researchers themselves can also collect empirical first hand evidence. (Cresswell, 2014)

Secondary literature provides empirical material, which has processed primary

sources in order to discuss and interpret evidence. These sources are mainly readily

available and have been mostly scholarly peer­reviewed; journal articles, newspaper

articles, books.(Ibid)

The secondary sources used in this paper, are data which provide theoretical and

conceptual framework developed to perform a strategic market analysis which creates a

useful structure for assessing the selection of sources. This will be elaborated on further

in the following chapter.

Additionally, secondary sources have been used to provide a thorough account of

certain elements in the Danish market, which is needed to understand the ways in which

a business may act and develop a business strategy, accordingly.

Other sources collected are data with regards to SNS and Wagamama to ensure

sufficient data and knowledge on the subject matter. These sources consists of official

publications, magazine interviews, new media sources.

New media sources such as websites will be used to gather contemporary

information about a social phenomenon through the accessibility of newspaper articles,

official documents as well as blog posts. These sources have been used to access and

collect data with regards to both SNS and Wagamama. (Ibid)

2.5 Review of empirical data

Data in relation to the Danish market have shown that there are typical behavioral

tendencies to be identified. Most sources are from 2011 ­ 2016, thus these sources takes

into account a situation, which goes beyond the years of the financial crisis and

recession.

12

Assessing the literature with regards to the entry of the Pan­ Asian cuisine to

many western countries, as well as the increasing popularity of Japanese­sushi can be

traced back to the societal changes due to several variables. These are globalization

trends, technological advancement, geographical placement and accessibility,

sustainability considerations, affordable for large group of people, as well as healthy

convenient quality food vs fast food culture etc. (Bestor, 2001), (Hsin­I Feng, 2012)

Although being one of the most successful restaurant groups in Denmark, SNS

has not been broadly discussed at least not on an academic level. However, there are to

a larger extent a fair amount of articles from several magazines.

In general, most literature seemingly argues that the key to the success of SNS is the

emphasis on CSR with regards to the product, the brand and the customer, through

which the company have created a synergy between danish and japanese culinary

tradition.

When investigating the branding of SNS, we chose to include these more

descriptive analyses of the company based on interviews and other archival data,

keeping in mind that it might not be as strong in its argumentation as academic research.

However, in order to provide a comprehensive knowledge of SNS we ought to include

the literature.

Assessing the literature related to Wagamama, the key to the success of the

company is the attention and approach to becoming a global brand. Wagamama is big

international brand, who are branching out through the development of a franchise

model. However, sources about the business strategies, organization as well as

information about the Danish franchise have been difficult to obtain. Thus the analysis of

Wagamama is based on UK sources, which may be deemed corresponding to the UK

business activity.

13

2.6 Limitations and evaluation of the paper

The following sub­section evaluates the process of conducting the paper and the

limitations occurred.

2.6.1 Source and process limitations

The scope of the research projects has been changed during the time of research

and writing. As an example the initial idea, was to analyze and discuss the popularity of

Japanese­Sushi in Denmark. However, the scope turned out to be difficult to follow

through, as both sources and group discussions lead to the current scope of performing

a strategic analysis of the Danish market and Pan­Asian restaurant industry. Additionally,

a group member decided to leave the group, which has been a project constraint.

2.6.2 Choice of companies.

As both SNS and Wagamama are considered frontrunners in the Pan­Asian

restaurant market with a strong brand, it is a limitation that we are mainly able to identify

the success of the companies and not their initial failures.

Furthermore, the purpose of utilizing SNS and Wagamama was to investigate and

advise new companies wanting to enter the Pan­Asian restaurant industry. However, in

the process of conducting an overview of the industry, we have come realize that both

SNS and Wagamama are representing two very different sides of the Pan­Asian

restaurant spectrum, being sushi and noodle dishes, respectively. Thus drawing a

picture of the current market and industry environment does contains limitations as the

chosen brands can be considered dissimilar.

Although we contacted the respective companies, we were not able to conduct

interviews, which has limited the knowledge and sources accessible for the process of

working with the paper and obtaining in depth empirical data.

Chapter 3 Theoretical considerations This chapter describes the theoretical and conceptual considerations used for this

14

paper in order to conduct research on the current Danish market environment in relation

to how organizations and business operates and organizes themselves in order to

increase the effectiveness and efficiency.

To attain the objective in analyzing the Danish market, the characteristics of Danish

market should be identified, the paper utilizes prominent strategic analysis tools. In the

application of the strategical techniques: a PESTLE, Porter’s five force, and SWOT

analysis, we are likely able to understand the environment of Danish market. Regarding

the firms and organizations, those analyses are required to be conducted in relation to

the markets they dig into. This process offers a level of consideration which is to be

studied when entering a new market through identifying the significant factors in the

market of danish environment.

3.1 PEST analysis

A PEST analysis is a strategic technique, which is used to consider four factors,

Political, Economic, Social, Technological which may affect the operations of

businesses. These external factors are needed to be identified for organizations, which

has no control over them, but the implications of those factors are needed to be

understood. (Daft, 2014) This method is often used in launching a new product or

service, opening a business in a new country or region, and exploring market.

Strategic techniques are necessary when a business is about to start. How can a

business know and strive for such factors and other competitors, who have already

occupied a market, when launching a product or service in a new market or region?

What factors should be considered in this context? The straightforward answer, in this

sense, can be saying that “research thoroughly the market beforehand”. Of course this

answer is the right one to start out. But questioning furthermore how? What ways are

available to research such markets? A number of ways and methods are in this era

present. This paper suggests some of the basic methodological analyses, which have

been effectively applicable in a business market to analyze.

15

Organizations or companies have no power to make any changes on those

factors and control over, but need to understand how those factors may influence your

organization or business by identifying the relationship between external factors and

internal factors. (Zalengera, 2014: 343)

For example, regulations and restrictions made by governments can be

considered as a political issue, which is most likely to influence your organization and

business. In addition to environmental issues such as air­pollution, emission limitation,

and etc.. may regulate the activities of your organization’s performance and in production

of commodities and goods. This process helps to be aware what factors exist and how

they would operate in your business. (ibid)

A PEST analysis works as a means to analyzing and researching the market

environment, can be classified as: opportunities and threats in a SWOT analysis, which

include identifying the strengths and weaknesses of the organization, and also

opportunities and threats present in the market that it operates in. A PEST analysis

classifies issues in such external operation, that can be combined with a SWOT analysis

to identify opportunities and threats through linking to a PEST analysis. This combination

of analysis is due to carry out in a later chapter.

3.2 SWOT analysis

A SWOT analysis is a framework that an organization applies to identify inside

elements and its surroundings in relation to its current activities as well as in creating a

business plan. The SWOT analysis is one of the best­known techniques that helps to be

aware of crucial forces that will impact the organization presently and in the future growth

by identifying four determinants: the strengths and weaknesses of organization, and

opportunities and threats present in the market that the organization operates in.

(Leinsdorff, 2003)

16

The process of a SWOT analysis comprises brainstorming the four perspectives

of the organization and then classifying each impact of the perspectives. Strengths and

opportunities will offer positive impacts while weaknesses and threats will give negative

outcomes to the organization. According to Leinsdorff (2003), the threats and

opportunities provides an account of the external environment such as, competition, laws

and regulation, demographic domain, the strengths and weaknesses lay down an

analysis of the internal environment of the organization. By analysing the strengths and

weaknesses, it becomes easier to identify whether these open up any opportunities or

threats that you should either emphasize or seek to eliminate them.

The combined evaluation of the SWOT analysis can be practically used for making

decisions for the future plan and development of a business strategy. In addition, the

SWOT analysis opens up for the the application and usage of more specialized strategic

marketing frameworks; such as Porter’s framework of the five forces, for example.

3.3 Porter’s five forces analysis

Porter’s five forces model is a competitive analysis that is widely used approach

for developing strategies in many modern industries. The model of analysis underlies the

intensity of competition among firms and companies that varies extensively across

industries (David, 2001: 74). Porter’s analysis is alternatively considered as credible and

practical to the widely used SWOT analysis.

The key factors of Porter’s five forces consist of three horizontal competition: the

threat of substitute products or services, rivalry among competitors, and the threat of

new entrants, and two forces from vertical competition: the bargaining power of suppliers

and the bargaining power of customers. Below figure.1 shows how the forces interact

with one another. (ibid)

17

Porter puts emphasis on the “attractiveness of an industry, which can be analyzed

by looking at potential opportunities and risk, can be viewed as a composite of five forces

that are the driving forces within industries:

­ Rivalry among competitors

The first force addresses the current and already existing competitors within the market

industry, and reviews the number of competitors, their strengths, products etc.

Additionally, the rivalry among competitors often plays out in regards to price

competition, promotion and advertisements, the introduction of new products etc.

Moreover, the intensity of rivalry amongst established firms also reflects on the growth

rate of the industry as well as the structure of the industry in terms of monopoly or

fragmented etc.

18

­ Threat of new entrants

The threat of new entrants force refers to the impact and effect of new entrants in

relation to existing firms. Thus new entrants addresses the barriers to entry in terms of

the possibility of new firms positioning themselves in the industry. Barriers to entry

include, government regulation and legal barriers, assets, patents, accessibility to

distribution channels etc. The easier it is for new companies to enter, the more

competitive will the industry become.

­ Threat of potential development of substitute products

Threats of Substitute refers to alternative products, goods and services on the

market which may carry out the same function. Thus the substitute products force,

addresses the uniqueness of products in the industry. If differentiation of the products

are it may limit the possibility for firms to change prices etc.

­ Bargaining power of suppliers

The Bargaining power of suppliers force, emphasizes the relation and negotiation

power between the firm and the supplier. In detail, the force evaluates the dependence

and power of the supplier of a product and addresses if there are there substitutes for

the suppliers products etc. If the negotiation power of the supplier is high, then the

company may risk losing control in terms of the suppliers costs of inputs in producing the

product e.g. labour costs, services etc. Thus, firms can be facing a situation where they

may choose between increase of price or reduction of quality. Additionally, if the product

differentiation is low, then the supplier has a weak negotiation power.

­ Bargaining power of customers/ buyers.

The fifth force deals with the influence, demands and the negotiation power of

consumers. Doing so, the bargaining power of customers addresses if the customers are

likely to switch to other firms or companies and thus the customer loyalty in relation to

the firm is questioned in this force. As with Bargaining power of suppliers, if the

19

negotiation power is high, meaning that changing from one company to another can be

done easily, then the customer loyalty may be weak. Additionally, likewise the

bargaining power of suppliers force, customers can affect firms in terms of price setting,

quality e.g ecology etc.

The competition in market industries can be intensified by many factors such as

the increase of newcomers and suppliers negotiation power and the interaction between

buyers and supplier. Yet as identified, the Porter’s Five Forces thus provide an analytical

tool for firms or companies to carry out a strategic market analysis.

Firms improve strategies in a daily basis to cope with their competitors. Industries have

been being an attractive and unattractive place to enter. Various sources offer

opportunities and risks at the same time. To cope with such rivalry, Porter’s five forces

analysis plays a significant role in analyzing the level of competition within an industry,

and help firms to adjust and position themselves in the market. (Dobbs, 2014)

In this regard, the paper carrying out Porter’s Five Forces analysis of the market

industry, in relation to SNS and Wagamama, in order to provide an extensive outline of

the competition in the Pan­Asian restaurant industry. We expect the assessment with the

use of Porter’s Five Forces to make available, suggestions on how new firms should

target to position themselves.

4. The Service marketing mix ­ the 7P’s of marketing

The service marketing mix builds on concept of the four P’s which put forward four

variables named the 4 P’s concept. These variables are necessary for businesses to

address when launching the selling points of a product or in promoting a brand

(Learnmarketing, 2016)

As service and hospitality are becoming an increasingly greater part of the

business strategy of many companies, marketers have introduced the 7 P’s concept.

20

This concept, also named the Service marketing mix, is an extended version of the 4 P’s,

which integrates the service as a product on its own. Thus, the concept adds the

variables like People, Process and Physical evidence, which is deemed necessary for

running the service and hospitality elements of a business, although intangible in nature

(Marketing91, 2016).

­ Product ­ This variable refers to the product bought by the customer and thus

several questions are considered when designing the strategy for the product in

terms of the product target group, competitor products etc. The product variable is

also important in regards defining how the business plan to position themselves

and product within the market.

­ Price ­ The price variable regards the cost and pricing strategies of a product or

service provided by the business.

­ Place ­ Place refers to how and where the product is made and delivered to the

customers, in order to ensure convenience and accessibility for customers and

the business.

­ Promotion ­ Promotion concerns the communication and promotion to customers

regarding the product or services offered by the business. In detail, it regards any

related activity in raising awareness in terms of advertising, campaigns etc. in

order to raise business sales.

­ People ­ People refers to the number of persons and staff that are connected to

running the business. In service marketing, the people variable plays an important

role in ensuring the satisfaction and connection to customers. The companies

must see to that the staff has received the necessary training in customer service,

company, brand and business knowledge and policies as well as interpersonal

skills to excel in this area.

21

­ Process ­ Process in case of services regards the process of delivering of the

service to the customers. Services need efficient and clear processes.

­ Physical Evidence ­ Physical Evidence is used as part of establishing and

creating the optimum service delivery, as it distinguish the physical environment

from which the service is delivered. This entails the conditions of perhaps a

retailer's shops or a restaurant in terms of cleanliness, friendliness, interior design

and style etc. upon which the customers make judgements concerning the

business.

In the paper, the concept will be utilized in terms of providing an understanding of

SNS and Wagamama, their company profile as well as how they market their product

and services. Moreover, the concept will be applied as the mean to discuss what

business strategy new companies must create in order to enter the Danish market.

3.5 Brand Recognition

A brand recognition plays a fundamental role in the establishing a relation

between the individual company or business and the consumers. The brand consists of

an associative process through a variety of cues, symbolic meanings etc. that may

impact the brand attachment and the success of a company. Thus, the brand image

requires careful strategic decisions in terms of avoiding run­of­the mill pitfalls, whilst

maintaining a unique image to be able to differentiate from other competitors. (Elliott et

al., 2015) Going forward, the paper examines the brand of SNS and Wagamama to

identify similarities and differences between one another, the Danish market and the

industry.

3.6 Product Lifecycle Management

The framework assesses the life cycle of any product and service, and identifies

five stages with distinct characteristics in terms of operational costs, competition,

22

development etc. all of which demands that the company takes on certain strategic

approach to realize the optimum revenues to the costs.

­ Stage 1. Product Development. This stage has no costs and little to none

competition.

­ Stage 2. Introduction to market. When introducing a new product or service

promotion is critical in order to create demand.

­ Stage 3. Growth. As the company and product have gained a position in the

market, profits occurs as an effect of the demand and the costs are reduced. On

the contrary, competition rises and the differentiation is necessary.

­ Stage 4. Maturity. This stage is characterized by sales speak, stiffer competition

between the most prominent players in the market which affects the level of

demand. Thus, pricing strategies and other potential competitive advantages are

taken into account.

­ Stage 5. Retirement. The product suffers from low demand, the product must

reinvent itself to encourage consumers to purchase the product. (Glessner &

Gillis, 2012)

Chapter 4 Sticks ‘N’ Sushi and Wagamama In order to facilitate a comprehensive understanding to the subject researched

and working questions, we have chosen to approach the danish market from the

perspective of SNS and Wagamama.

The most distinct similarity between these two companies is that both draws inspiration

from the Pan­Asian cuisine, through which both SNS and Wagamama are companies

that have experienced great success. The following chapter will present an outline of the

two companies using the service marketing concept.

4.1 Company description of Sticks‘n’Sushi

The following gives an account of information and highlights in relation to the

activities of SNS over the past years, which includes major products, strategies etc.

23

Furthermore, the section aims to go in depth with the data collected and present SNS in

connection to the service marketing mix of the 7Ps concept.

4.1.1 Company profile

SNS is a danish restaurant chain

company, who specializes in Pan­ Asian

food. More specifically sushi and yakitori

sticks. The first SNS restaurant opened in

1994 in the center of Copenhagen, in

Nansensgade, by current CEO Kim Rahbek Hansen, Jens Rahbek Hansen and Thor

Andersen and has since been established as one of the most recognized sushi

restaurant ­chains in Denmark (Sticksnsushi, 2016).

4.1.1.2 The business concept

The conceptual idea of SNS derives from the heritage of two of the founders,

brothers Kim Rahbek Hansen, Jens Rahbek Hansen, who found the inspiration to the

concept by bringing together their half­ Danish and half­ Japanese background.

In detail, SNS focuses on a combination between the gastronomical traditions of

Japanese and Danish cultural heritage, and thus offers traditional Japanese food,

distinct, and innovative design in a Nordic­ themed setting as well as emphasizing “the

Good hostmanship”, emphasizing the importance of customer experience as a whole.

4.1.2 Sticks’N’Sushi and marketing mix

4.1.2.1 Product and services

The main products that SNS offers to the customers are a wide variety of

traditional Japanese­sushi dishes and yakitori sticks made of beef or chicken etc.

24

It is a core principle and characteristics of SNS to serve the highest quality of food and

thus SNS places much emphasis on variety, style, healthful and fresh. As an example

freshness means that food is only being prepared when first ordered.

Furthermore, the process and the journey of the products e.g. from the fisheries to

the customer is carefully considered and correlates with the sustainable strategic

approach and responsibility that SNS have taken in terms of ecological awareness of the

business practices. In detail, all products and ingredients are connected to the global

village concept, which means that SNS wish to have full control over the supply chain

and thus products such as salmon, tuna, Nori (seaweed) comes from all over the world

(Foodservice europe, 2011). See Appendix A.

Additionally, the company menu also offers range of other Pan­ Asian inspired

side dishes, salads, ribs and steaks etc. From here, to ensure convenience, SNS has

several menus from which the customers can choose from such as “gets me in a good

mood” menu, where customers decide for themselves, or from prearranged menu.

Regarding the service of SNS restaurants, the interior design is an important

aspect that reflects the conceptual idea, through which the cosmopolitan Nordic inspired

setting stands in stark contrast to the traditional Pan­Asian inspired cuisine for customers

eating in. Here, the good hostmanship is regarded as part of the customer experience

that SNS offers. Furthermore, SNS has also launched its own merchandise in the form of

T­shirts and other ingredients that are used in the SNS Pan­Asian themed cooking such

as; edamame beans, sauces, wasabi etc. from which customers can bring home to use

themselves.

4.1.2.2 Price

Following the more than 20 years in operation, the SNS products and price range

have developed according to the image of the brand. In this regard, the company

25

characterizes the image of SNS as being relaxed and friendly with a premium appeal.

CEO Kim Rahbek Hansen has also called SNS products for affordable luxury (Food

service europe, 2011). Prices for a most meals ranges from approx £ 20 ­25 for one

person, and around £40­60 for a shared meal for two. See appendix A.

According to SNS operations director Andreas Karlsson the price of SNS products

are in general higher than most restaurants in the industry, as SNS have very strong

demands to the quality of the product and services.

In this regard, SNS have made it part of their company mission since 2009 to be

strongly engaged in Corporate Social Responsibility and have created a three level

strategy that translates to all areas of the business practices. The strategy has been

name SushiStainable, and serves the purpose of ensuring that the internal environment

of the company and external activities are follows the strategy. Especially being

responsible in terms of approaching all business practices towards an ecological and

sustainable commitment is prioritized (Food service europe, 2011).

The primary level stresses that SNS must review everything that comes inside the

walls of SNS. The purpose of the second level is to ensure that the collaboration

between the suppliers and SNS follows the company policy.

The third level aims inspire and influence colleagues, guests and the community by

sharing knowledge and experiences.(Sticksnsushi, 2016)

In detail, the SushiStainable strategy stresses how SNS aims to create a solid

foundation for improving their own methods and activities. Additionally, the strategy for

example emphasizes how every fish, vegetables are carefully processed and selected,

so that they do not put further stress on e.g endangered species etc. Fish is the core

product of SNS, thus the strategy stresses strong demands regarding the fisheries and

suppliers of SNS, who ought to act responsibly, whilst ensure transparency in regards to

fishing methods down to the fodder that the fish a being fed in fish farms etc. the policy

26

also puts a strong emphasis on the protecting the ocean life to prevent marine areas to

be overfished.(Sticksnsushi, 2010)

In April 2016, SNS announced a partnership with danish company Aarstiderne,

who specializes in supplying organic, fruits and vegetables. The partnership is part of

becoming more responsible regarding products used as well as enabling the creation of

more flexible menu e.g. depending on the season. Additionally, in the future SNS also

plans that all meat on the menu shall be organic. (Sticksnsushi, 2016)

In relation to that, the price for the products and services offered at the

restaurants are thus closely connected and reflected inTo sum up, the pricing strategy

for the products and services offered are influenced by the cost to each activity, thereby

closely connecting the price with the CSR values and high demands to suppliers

4.1.2.3 Place

Following the opening of the first

restaurant, the company has since

expanded its market presence launching 11

other restaurants in the Greater

Copenhagen Area. The most recent opened

in spring 2016, in Amager, Copenhagen. In

the fall 2016, SNS is expected to launch a new outlet at the new food court in Tivoli. The

expansion has meant that the accessibility of SNS for potential customers living in

Copenhagen has increased.

Financially, SNS restaurants have on an annual basis more than 1.5 million

customers.

27

Moreover, following the annual report for the financial year 01.07.14 ­ 30.06.15, the

revenue for that year was 350.949.000 DKK. In comparison to the period 2010/2011 the

revenue for that year was 188.515.000 DKK. (Sticksnsushi holding A/S, 2015)

In this regard, SNS has the financial capacity to strive for more openings and

recruitments and previously the strategy has been to open maximum two new

restaurants on a 2­year basis. The current strategy plan, however aims to intensify and

accelerate the opening with three ­ four new SNS restaurant per year until 2020. (Ibid)

Online services

One of the areas, where SNS has projected themselves in terms of revenue and

technology is regarding takeaway options and the produce availability online. Through

the website, SNS provides a service that enables customers to order online, a strategy

that can be seen as way for SNS to intensify business activity and revenue, by reaching

out to customers who might not have time, or be limited by geographical placement.

Take­away sales contributed to approximately 43 per cent of the total revenue in 2010,

despite the full service concept (Foodservice europe, 2011).

In Denmark 2014, take­away sales accounted for around 45 per cent of the annual

revenue (Propel quarterly, 2014).

Branching out programme

Additionally, SNS has since 2010 attempted to initiate a strategy of branching out

internationally by opening four SNS restaurants in England. The first restaurant opened

in March 2012 Wimbledon. Outlets in South London,Covent Garden, Central London,

Greenwich, South East London and at Canary Wharf in East London have since

followed. Paul O’Farrell, a previous Wagamama manager with expertise in franchise

models was responsible for establishing the first London outlet outside Denmark.

According to company operations director, Andreas Karlsson ­ previously connected to

Wagamama ­ the outlets in England have faced challenges economically, as SNS do not

28

have the needed buying power and wages are lower than in Denmark whereas rent is

higher (Propel quarterly, 2014).

Following the opening of the outlets in England, SNS has developed an expansion

programme, which is to open a number of restaurants between one and three a year, to

boost SNS’s activity in London.

In 2013 the SNS expansion programme was boosted as the Danish venture

capitalist Maj invest choose to invest. Accordingly, they let SNS act on its own, and do

not have a majority stake etc. (Sticks N sushi, 2013).

Come the fall 2016, the company enters a new European market, launching the

first SNS outlet of its kind in Berlin, Germany (Newsbreak, 4 Nov 2014).

Despite challenges, the danish newspaper Børsen could in 2014 report that around 12

percent of the total company revenue came from the restaurants in the UK (Borsen, 9

April 2014).

4.1.2.5 Promotion

By placing emphasis on the core product, being affordable luxury, of the highest

quality and sustainable, SNS indirectly promotes a unique selling point. The number of

SNS restaurants also influences the awareness channeled to customers.

However the ways in which SNS choose to advertise themselves is through social

media such as twitter , Instagram and Facebook, where people can read about

campaigns etc. People can also sign up for the SNS newsletter (Sushi.dk, 2016).

However, for SNS the main promotional technique is based on the satisfactory of the

customers, where recommendations from customers push the promotion of the company

in a specific location.

29

4.1.2.5 People

Following the expansion of SNS restaurants, the company, as an effect SNS

restaurants have a high number of employees. Following the annual report for the

financial year 01.07.14 ­ 30.06.15, SNS restaurants have recruited more than 800

employees. As part of the SushiStainable strategy all employees have received

extensive training in order to meet the standards of SNS in terms of customer service,

company knowledge etc.

The average number of employees for the year 2014/2015 was 560, whereas in

2010/2011 the average number of employees was 267 (HLB, 2015: 10­ 17).

4.1.2.6 Process

In terms of the process variable SNS has outline a clear strategy for delivering

and providing the service depending on takeaway choices or eating in. The food is

prepared when being ordered to ensure freshness.

4.1.2.7 Physical Evidence

As stated previously, the design of the SNS restaurants are fundamental part of

the customer experience and the uniqueness of the brand to make customers come

back. Thus, the Nordic­ themed setting is set to create a relaxed atmosphere along with

the knowledgeable and friendly staff.

4.1.3 Sticks’N’Sushi as a brand

Since the inauguration of the first restaurant, SNS has become a prominent player

in Copenhagen in terms of the sushi and Pan­Asian food market. Additionally, SNS has

constructed an image of the brand that provides guests with a wide range of food

choices in a Nordic­theme setting and cosmopolitan interior and style. Thus,

emphasizing an authentic and cultural brand.

Furthermore, the company also stresses out that their products and services are

of the highest quality. This is made possible by ensuring that products are fresh and that

30

they correlate with the SushiStainable strategy, the collaboration with the suppliers etc.

Additionally, the SNS brand also emphasizes a healthful and nutritious way of eating in a

affordable price range.

4.2 Company description of Wagamama

The following provides an outline of information and facts regarding the past years

of Wagamama Limited. Furthermore, the section delineates a comprehensive account of

the company by applying the data collected to the service marketing mix of the 7Ps

concept.

4.2.1 Company profile.

The London­based restaurant chain, Wagamama Limited, was founded by Alan

Yau and opened its first restaurant in Bloomsbury, London, 1992.

Since then the company has experienced great success, nationally and internationally,

presently operating 12

restaurants which are located

in central London.

Internationally, Wagamama

have been successfully

developed by accelerating a

franchise model. Currently, the

company has more than 100

Wagamama restaurants worldwide, which are located in 17 different countries operating

in the Pacific Rim, Middle East, Europe and US (Wagamama.com, 2016)

Being a Limited company, Wagamama is a private equity owned company, which

has been owned by the firms Hutton Collins and Duke Street for the past five years as it

31

was sold for £215m, but has had several other investors throughout its years active (The

telegraph, 23 Jul 2015).

4.2.1.1 Concept

The conceptual idea behind Wagamama draws on the basis of founder Alan Yau

and in relation to his book, The Way of the Noodle. In detail, the concept is influenced by

Pan­Asian gastronomical traditions which is combined with a traditional

Japanese­Ramen shops interior design with long wooden benches enabling customers

to in (Tivoli, 2016)

Wagamama Limited, to which means naughty child in Japanese, is based on the

Japanese word “kaizen”, meaning “good change” and has become the foundational

philosophy behind all business related activities since 1992, as it pushes for constant

improvement to become better (Wagamama.com, 2016).

In 2001, the restaurant chains was described as sexy, fun, accessible, attractive

and profitable etc., when Ian Neill, who initiated the franchise model, won Catey Group

restaurateur of the Year award (thecaterer, 2016).

4.2.2 Wagamama and 7 P’s Marketing Mix

Out of the 17 countries, Denmark is one of them. The first Wagamama restaurant

opened in Tivoli Gardens. The second Wagamama was launched in 2014 at

Frederiksberg.

The following analysis of Wagamama through the 7Ps concept will focus on the Danish

outlets (Evening standard, 19 Sep 2014).

4.2.2.1 Product:

The product that Wagamama offers is inspired by authentic Japanese and other

Pan­ Asiatic the company gastronomical traditions with the purpose of nourishing,

soothing, sustaining and inspiring. Thus the company describes itself as being a stable

modern asian cuisine.

32

Customers can choose from a wide range of dishes, upon which Noodles and rice

dishes constitutes the core product such as, Ramen (a bowl of fresh ramen noodles, hot

broth and garnishes),Teppanyaki (Plate of stir­fried noodles with crunchy vegetables) as

well as a wide variety of Curry dishes, Omakase dishes ­ the chef's speciality ­ and

several choices of side dishes such as the popular traditional Korean dish, Kimchi ­ all of

which is served fresh based on the philosophy and high standard of Kaizen

(Wagamama.com, 2016).

In addition the restaurants also serve a mixture of Pan­asian drinks such as asian

beers and Sake as well as more mainstream choices of soft drinks and wines

(Wagamama.com, 2016) Moreover, Wagamama restaurants also sells official

wagamama merchandise that relates back to the menu of wagamama such as, ramen

bowls, cookbooks, t­shirts and wagamama sauces etc.

4.2.2.2 Price

In Denmark, the price for a main course range from between DKK 90 ­ 130

(approx £ 10­ 30), side dishes and drinks range between DKK 30­50 (approx £ 3­5)

(Just­eat.dk, 2016).

In 2009 Wagamama appointed The Lounge Group, a marketing agency to create

a strategy that would aim to raise awareness of Wagamama for young adults and

students, wanting to become a premium brand of fresh, healthy and affordable food for

that community. Thus, the pricing strategy of Wagamama can considered to be

developed with reference to such market audience (Campaign 20 Aug 2009).

The products and price level of Wagamama have met competition from smaller ramen

based restaurants, although mainly London­based (The telehgraph, 23 Jul 2015).

33

4.2.2.3 Place

The other geographic expansions under a

franchise model. Wagamama sees the

franchise system of mirroring a whole life

system, with a unique structure, strategy

and process for each franchisee group and

restaurant (Wagamama.com, 2016)

Currently, the franchise model of

Wagamama has broad two restaurants to Denmark. Both outlets are situated in central

Copenhagen.

Tivoli Gardens, as mentioned the restaurant is located at Tietgensgade 20, was

the first Wagamama in Denmark. With this location the restaurant is located within short

distance to Copenhagen Central station. Moreover, the the restaurant offers its guests a

unique experience has the restaurant one can enter from Tietgensgade and Tivoli

Gardens ­ which a famous amusement park and one of the must­see places in Denmark,

dating back to 1843 (Tivoli, 2016).

As stated on the Wagamama website the restaurant capacity is 246 people. Moreover

other facilities are free wi­fi and facilities for people with disabilities.

Frederiksberg, the second restaurant in Copenhagen, Denmark is located at

Frederiksberg, at Solbjergvej 3, which places it right next to Frederiksberg Mall, the

Metro, fitness centers, Frederiksberg Gymnasium, Copenhagen Business School as well

as the cinema of Falkoner. Thus the location provides a great flow of activity, and

possible customers.

The restaurant capacity is 138 and offers the same opportunities as Wagamama in Tivoli

Gardens, regarding free wi­fi, facilities for disabled etc. (Wagamama.dk, 2016)

34

Wagamama, also offers customers to order online through the website of

wagamama. Here, customers are offered a direct and simple possibility to order take­out

food.

In Denmark, Wagamama has partnered with the famous online ordering take­away site,

Just­eat.

4.2.2.4 Promotion

Wagamama, CEO David Campbell proclaimed in February 2016 that the

company has developed a strategy, which aims to make Wagamama a global brand

within the next couple of years. Additionally, the company plans to open 45 restaurants

over a three year period (Wagamama.com, 2016)

Campbell, describes Wagamama as an urban brand, therefore the global strategy and

placement of the outlets will work in favor of the big cities whilst moving away from

suburban target groups.

Thereby, Wagamama locations have to be prime sites in order to have enough

power to pull people in (Cgapeach, 29 Feb 2016).

The financial turnover at Wagamama for the period 2014/2015 at the end of april

2015 was £193m. The turnover for the previous year was £164 m, thereby Wagamama

raised the annual sales with almost 18 per cent. (Armstrong, 2015) The financial

situation, is what support carrying out the expansion strategy and objectives of the

company.

Additionally, expanding to the US market is the one main priority of the Company.

At the moment, the restaurant chains has launched four outlets in the US, all of which

are directly owned by the company and are located in Boston.Yet the company is

planning to opening the next in New York (The telegraph, 23 Jul 2015).

Wagamama promotes itself through the use of social media platforms such as

Facebook, Twitter, Instagram etc. Wagamama also promotes itself through the website,

35

which serves the purpose of capturing the dinings experience online, and create a

platform for its digital marketing work in order to increase sales in take­out ordering and

shop transactions as well as greater returns. The site was launched in September 2012

in cooperation with Sitescore, a developing software agency, which harness the

minimalistic, personalized and sophistication of Wagamama (Sitecore, 2012).

Additionally, Wagamama has shown to be innovative in terms of introducing new

technology, which is a hallmark for the brand. As an example, Customers will be able to

pay at the tables with an app, as well as new feedback technology. (Cgapeach, 2016)

4.2.2.5 People

Campbell has proclaimed that he wants the business to become self­sustaining.

Overall, he sees that the company is good at management level, but acknowledges

challenges in terms of getting the right people recruited.(Recruiter, 24 Jun 2015).

4.2.2.6 Process

Wagamama serve the food, as it is cooked, in order to keep the food fresh,

meaning that the service is high paced, which relates back to the concept of the

Japanese ramen­bar. Additionally, this means that food may be received at different

times (Voxpopme, 2016).

Additionally, in March 2015 Wagamama entered into a partnership with

MasterCard, meaning that customers are offered the chance to pay using the Qkr! App

(The caterer, 2016).

4.2.2.7 Physical Evidence

As previously mentioned, one of the major ways in which Wagamama is able to

distinct themselves from their competitors is in regards to the physical evidence and

layout of the Wagamama restaurants to create the unique dining experience.

36

By replicating Japanese ramen­shops, where customers are seated together on long

wooden benches, the physical evidence serves the purpose of inspiring a friendly and

sociable atmosphere.

In relation to the Danish franchise, boht Wagamama’s two restaurants rank with

the highest grade, based on an Elite Smiley face, for 4 consecutive quarters

(Findsmilely, 2016).

4.2.3 Wagamama as a Brand

Based on the outline of Wagamama through the 7Ps Marketing Mix above, the

analysis of the internal environment of the company, characterizes Wagamama as a

brand, which can be associated with high quality Pan­ Asian culinary food offerings and

tradition ­ hence the Japanese ramen shop­style inspired interior design, yet within a

affordable price range.

Additionally, the company has since 1992 been developed into a recognized

international restaurant chain, branching out activities in 17 countries. The restaurant

chain has a strategy in becoming an internationally acknowledged brand that combines

healthful, stylish food in a fun atmosphere whilst being convenient and accessible for

customers wherever they are in the World e.g. with the introduction of new technology

etc.

In terms of Denmark, Wagamama currently has two restaurants, both located in the

center of Copenhagen, and offers a different concept to e.g SNS

Chapter 5 Analysis of the danish market and companies The following chapter carries out a strategic analysis of the Danish market

In order to analyze strategic factors regarding the external or macro environment which

is important in relation to determining the value and position of SNS and Wagamama.

Additionally the assessment of the external factors will be analyzed by applying the

framework of the PESTLE analysis and Porter’s Five Forces. Going forward, the first part

37

of the chapter will present an assessment of the macro environment by utilizing the

framework of the PEST analysis. Secondly the chapter will investigate the internal

conditions of the industry by applying Porter’s Five Forces.

The chapter serves the purpose of assessing both external and internal factors

should be regarded in relation to investigating the position of Wagamama and SNS, yet

also in relation to advising new restaurant on what to take into consideration.

5.1 PEST analysis

As previously mentioned, the purpose of PEST analysis is to approach the whole

market environment from different angles. Such account is fundamental for the strategic

management and decisions of a company.

According to Daft (2014) this framework provides a comprehensive account of the

environment or market, and assesses how companies responds to them. The

environmental domain, is defined by various external sectors, that all have a potential

effect of the actions and decision­making process of the management. Every company

has its own domain or niche, and must assess those respective external sectors relevant

for their product or service in order to accomplish their end objective, revenue.

Additionally, the PEST framework provides a brief overview of macro environmental

factors, thus only factors that may impact the Wagamama and SNS are considered.

5.1.1 Political factors

Political factors are closely associated with legal, regulatory forces of the

marketing environment. Laws and legislations are enacted by political parties, which

means that political officials, who can influence control laws, are likely create or enforce

laws and regulations favorable or unfavorable to the industry within your company

operates. This means that governments play a role in linking public­private partnerships

for financing capital projects such as schools, hospitals, and public facilities (Dibb,

Simkin, Pride, and Ferrell, 2005: 72)

38

For companies who wish to enter the Danish market, it is important to know what

type of regime is governing the market and how political decisions influence your

company’s performance while your company is run in the market. In this sense,

Companies in Denmark, they need to understand the political forces of Denmark and

how they govern over the country in relation to business sectors. More importantly, if as

of the administration of Denmark would affect your business’ performance in favor or

unfavor. Marketers need to deal with those kind of political forces in order to achieve

their goals.

Level of corruption

Corruption level: Denmark is ranked on the highest level of transparency in 2015

among 168 countries around the world (Corruption perception index, 2015). This implies

the public sectors of Danish government is relatively more fair and transparent than other

ones. It will affect on the balance of making political decision and legislation between

companies without privileges to any specific firms.

Tax policy

Due to the wide variety of products relating to Pan­Asian cuisine, SNS and

Wagamama imports products from all over the world such as vegetables, fish etc. thus

import duty and tax when importing to Denmark can be regarded as important as it

affects the cost of the product and service that both restaurant chains offer.

EcoTax

Denmark has for many years been one of the front runners addressing the

environment and sustainability, politically. Additionally, Denmark charges businesses

with an environmental tax following OECD with reference to energy usage, emissions to

air and water, waste etc. the OECD publication, Taxation, innovation and the

Environment, 2011, showed that countries who had taken on environmental taxation

raised revenues equal to 1.7% of GDP (OECD, 2011).

39

Questions however, have been raised about the negative impact on the competitiveness

of affected businesses and their income distribution etc. (ibid)

Value Added Tax

All danish prices on goods and services are included with a 25 percent Value

Added Tax (VAT), and serves as funding for the Government (Visitcopenhagen, 2016).

For example in France, tax for restaurants are kept to a low point in order to keep create

a healthier and more affordable price range (Nationalt, 31 Dec 2011).

Public health

Public health is an important political subject in Denmark. In order to public health,

the Danish government imposed taxation on various goods. Most recently, the

government have proposed to impose taxes on beef, following the objective to reduce

CO2 emissions (Politiken 25 April 2016).

In this regard, a survey from dhblad.dk, shows that six out of ten, would be

affected to stay away from beef, as the Danes wants to become more eco friendly (DH,

18 2016).

In 2011, the government previously, placed a tax upon fattening food high in sugar to

reduce consumption, however, this was abolished as of 2013, as it did not affect prices

much (Politiken, 26 Jun 2014).

In 2010, the Danish government abolished the EU legislative requirement of

freezing down fish like salmon used for serving Sushi at least 24 hours in order to reduce

and kill potential parasites and bacteria in the fish. In this regard, SNS CEO Kim Rahbek

Hansen have dismissed the possibility of parasites as long as companies ensures

transparency with suppliers. In addition, anti­freezing supporters also points to the fact,

that the fish will lose its freshness (Politiken, 20 Nov 2010).

Employment laws

40

Additionally, one of the characteristics of Denmark is the welfare system that

ultimately ensures the public rights for example in relation to the hiring or dismissing of

employees, the number and power of unions etc. Collective bargaining agreements are

central to the employment laws which is an enforceable law that regulates and secures

salaries and working conditions.

However, contradictory to the employment laws, the danish report “ Danmark

2030 ­ sammen om lighed og velfærd”, shows that 40 per cent in the hospitality industry

does not make use of a collective bargaining agreements, including SNS. One of the

main reasons is that the service and hospitality industry is not the ideal career path for

most workers.

Additionally, anti­collective agreements entities argues that it may impact the

competitive landscape, negatively. More so, unions may affect the potential workers,

who wants to work more, as rules states that they cannot (Politiken, 12 April 2015).

Impact on Sticks’N’Sushi

The political factors above works in favor of SNS, as the core product is healthy.

Moreover, the control and transparency with suppliers ensures that SNS can follow

through with its SushiStainable strategy. Thereby, embracing the political focus on public

health. The Danish Government impose many different taxations, thus being a Danish

company, SNS can be considered to be aware of affect of the political landscape.

On the contrary, SNS does not make use of collective bargaining agreements, which

may impact the reputation.

Impact on Wagamama

Favorable conditions for Wagamama are that the company embraces the political

attention to public health due to the products used.

On the other hand, Wagamama may find the political factors regarding taxation and

employment laws challenging, considering that the company originates from the UK. All

of which may affect the business and operational costs.

41

https://www.justlanded.com/english/Denmark/Denmark­Guide/Jobs/Working­conditions

5.1.2 Economic factors

The economy elements are key to the business sectors. A given economy is the

result of a series of processes that comprises its social values, culture, political structure,

education, technology, and history. The economic factors are important, as it evaluate

the conditions of the country, market and industry, all of which can impact consumer

behavior and company turnover etc.

The Danish economy as a whole is heavily dependent on human resources and

trade with other countries. Foreign trade accounts for ⅔ of Gross Domestic Product

(GDP) and around ¾ of total trade activities are with EU members (Factsheet Denmark,

2014).

On a basis of development in foreign trade, Danish economy has been highly

improved. The result of improvement in economy, it led the unemployment rate to

decreased from 6.5% at the end of 2004 to 4.8% in March 2006 (Factsheet Denmark,

2014). Thanks to the development in economy, Denmark was able to experience

economic booms in that time. However, through international recession, many world’s

countries faced economic recession, also Denmark where is highly dependent on foreign

demands. (ibid)

After years from the recession, Denmark has slowly recovered its economy and

GDP growth. Based on its small and open economic system, the labor market is stable

and the unemployment rate appears to be low. But the danish productivity growth has

been weak over the past two decades and its domestic services sector is hampered by a

lack of competition in the country.

Wages and income

The average income of Danes can impact the buying power of customers. The

financial crisis brought with it a high unemployment rate, which as an effect meant that

Danish people had less money to spend, something which ultimately may affect the

42

buying power. In comparison to for example England, wages are much higher in

Denmark.

Additionally, Danish students are offered SU student grants when they turn 18.

The SU is a public support that is given on the basis of further education for the danes.

The SU rate is presently DKK 5.753 (approx. EUR 750), which is received on a monthly

basis. The Moreover, education at universities for Danish citizens is free

(Universitypost, 2016).

As shown in Appendix A, tables show the average disposable income for

Copenhageners, and the average income for the three major cities in Denmark.

However, both tables does not take into account e.g. the effect of tourism etc.

Impact on Sticks’N’Sushi

The economic factors impact on SNS are intrinsically linked to the social and

political factors, which addresses the behavioral tendencies in Danish society.

In this light, favorable impacts of the economic factors on SNS, externally is that Danes,

and especially Copenhageners, have a high average disposable income level. With

reference to the premium appeal and price of SNS products, the potential target

audience requires a certain income.

Unfavorable for SNS with regards to the economic factors may impact the operational

costs, as wages and taxation levels are high.

Impact on Wagamama

Favorable conditions for the company are that potential customers have sufficient

income which is required for eating out. Additionally, the public support given to students

should work in favor for Wagamama to reach out to its market audience.

43

Considering that Wagamama in Denmark is a franchise model originating from

UK, the company may have to deal with the different and higher labor and operational

costs which is characteristic for the Danish market.

As with SNS, the employment laws in Denmark ensure higher wages and security for the

workers also taxation may pose a challenge for the intensity of Wagamama’s franchise

presences in Denmark, as the company must to adapt to the new economic environment

and taxation level.

5.1.3 Social factors

Social factors comprise the structure and dynamics of individuals and groups

within a society. Many social issues become concerned about marketer’s activities when

questionable or negative outcomes are seen by those activities (Dibb, Simkin, Pride, and

Ferrell, 2005: 77).

In Denmark there is a tendency that many Danes lack time in their everyday life to

cook, and therefore these groups turn to precooked meals, in order to save time, which

as an effect has become more acceptable in society (DR, 9 Nov 2015).

Countries like England and Holland are frontrunners in this market.

Previously, deemed characteristics of an unhealthy lifestyle on par with fast food,

Many companies, retail and restaurants etc. have embraced this demand by increasing

the availability of easy prepared meals and combining it with another global trend, which

is healthy living and sustainability. Creating a convenience­market (Berlingske, 15 Jan

2010).

In addition to living healthy, cooking has served as backbone cultural tradition for

most Danes, however, the younger generation and students does not cook and are

exposed to a different situation than their parents. These groups make up for a one

major target audience that have contributed to the increasing growth of the

convenience­market and healthy takeaway options. (Ibid)

44

In addition, Danes enjoy going out, socialize and take advantage of the

opportunities that the city offers. In this regard, cultural attractions seemingly gathers in

clusters around major cities and in Copenhageners in comparison to other major cities in

Denmark spend the most going out. Copenhageners spend 5,22 per cent of the total

consumption on restaurants and eating out, and an average of 1300 DKK (approx Euro

175), which corresponds to 72 percent more than Danes from Northern Jutland.

(Rosenholm, 2015)

A report made by Horesta, shows that young groups of people in the age group of

20­29 are most likely to make use of the option of eating out. In 2012, the average

person at the of 20­29 paid visits to restaurants 53 times. People in the age group of

40­49 only tend to eat out half the time. (Horesta, 2013:8­10).

Impact on Sticks’N’Sushi

In relation to the social factors, the core product of SNS take advantage of the

trends and demand of healthy, fresh and convenient dining. Moreover, the

restaurant­chain is presently only concentrated on Copenhagen, where SNS is a strong

player on the market. It is also where danes spend the most money on eating out.

The unfavorable impact on SNS in terms of the social factors, may be that a larger

market audience for eating out is young people, students etc, who may not have a big

budget required to choose SNS often.

Impact on Wagamama:

The favorable impact on Wagamama, may conversely be that the price for the

products are lower than those of SNS, which makes Wagamama better suited to also

include student and young groups of people as their market audience. Additionally, the

Wagamama concept welcome customers with a social, fun and vibrant atmosphere,

which should speak to many Danes.

45

On the other hand, Wagamama only has two outlets in Copenhagen, although located in

busy places, the restaurant­chain might miss a large number of potential customers.

5.1.4 Technological Factors

These factors scrutinize the innovations in technology, which may have an effect

on the activity of the company.

Examples of these factors may be; automation, the amount of technological awareness

that a market possesses, research and development etc. Also, another technological

factor concerns the developments in agriculture and demands that restaurants take into

consideration that products that they use.

Impact on Sticks’N’Sushi:

As previously mentioned, SNS has, as a service introduced WI­FI accessibilities in all the

outlets, enabling consumers to remain online. Also, the company has been one of the

front runners in ensuring online presence by offering online ordering and take­away

options to increase business activities. Additionally, the company promotes itself by

using social media platforms.

The SushiStainable strategy and CSR approach also serves in favor for the

company in terms of be embracing the technological capabilities. Such is the partnership

with the organic and ecological supplier, Aarstiderne, which makes use of high quality

and local products.

Impact on Wagamama

Likewise with SNS, the favorable elements that Wagamama make use of is the

online services and convenience that are provided in terms of online ordering and WI­FI

options. Moreover, Wagamama have introduced also introduced mobile payments, by

partnering with MasterCard. Currently put into effect in the UK, which ensures

consumers more control of the restaurant experience.

46

Unfavorable for Wagamama is the high demand on ecology and sustainability from both

the Danish people and the government, which may place stress on the business

operations.

PEST sum up

The outline of the macro environment shows that there are several behavioral

tendencies, which might work as a benefit or challenge for companies entering the

Danish market. As seen with the exemplification of SNS and Wagamama the favorable

or unfavorable impact is determined on the basis of the business strategy employed.

5.2 Porter’s Five Forces analysis As mentioned the Porter’s Five Forces analysis framework provides an overview

of the position of a company in connection to competitors, strengths and potential

challenges in the industry. In detail, the framework acknowledges five forces that

influences the company position.

The framework of Porter’s Five Forces analysis will be put to use to examine the

industry the competitive environment. The ways in which SNS and Wagamama respond

to Porter’s Five Forces model is important as a means to consult new companies, who

wants to enter that same industry as well as to identify the each company’s ability to built

up their market position in relation to the intensities of each of the five forces. However,

the purpose of doing the Five Forces analysis is also to elucidate current and competitive

position of SNS and Wagamama.

5.2.1 Rivalry among competitors.

The number and capability of competitors in the Pan­Asian restaurant industry is

measured to deduce the market attractiveness of a core product and service.

Sticks’N’Sushi: (strong direct competition)

Due to the growing popularity of Sushi and the large number of Sushi restaurants,

47

SNS experiences strong direct competition. Most competitors are of smaller size,

however some companies such as LETZ SUSHI, may be regarded as the most

significant rival.

As a result of the large number of sushi restaurants, the aggressiveness is high as a

mean to differentiate their products to the customer.

LETZ SUSHI

A competitor to SNS is the sushi

restaurant­chain, LETZ SUSHI, which first

opened in March 2003 with 13 outlets in the

Greater Copenhagen Area and five in the

center.

In 2013 LETZ SUSHI fusioned with another Danish sushi restaurant chain, Dondon, who

at the time had six outlets. By also making sushi the core product, LETZ SUSHI can

compete in terms of Product, Price, Promotion and place. Regarding the latter, LETZ

SUSHI has five of the outlets located in the city and focus on Take­Away orders

(LETZSUSHI, 2016).

CC restaurant sushi & wok

CC restaurant sushi & wok (CC), is located in Nørrebro in Copenhagen. CC is a

small size restauran whose main product is sushi. The opening hours of CC is between

14:00 ­ 23:00, thereby targeting customers looking for late lunch and dinner, however

online options are also available. The company differentiates itself by offering Sushi Ad

Libitum Mon ­ Thu for DKK 158 and Fri ­ Sun for DKK 168 (approx £ 15 ­17). Kids below

the age of 11 must pay DKK 88. (CCrestaurant, 2016)

48

Wagamama: (Low­moderate direct competition)

Based on the assessment of Wagamama, the core product of Wagamama being

Japanese inspired rice and noodle dishes, the company only faces moderate direct

competition, as there aren’t many restaurants with the same concept, product and

services in Copenhagen. All of which should increase market attractiveness.

On the other hand, noodles and rice dishes has also been interpreted in other

Pan­Asian cuisines and hence the map in 5.2.2, Wagamama may be affected by the

number of restaurants specializing in Pan­Asian food.

5.2.2 Threat of potential development of substitute products.

As previously alluded to, the potential threat of substitutes analyzes the choice of

alternative restaurants with similar products. Thus, maintaining a high brand equity

development is important to appeal to local consumers.

49

Sticks’N’Sushi (moderate­high threat)

As mentioned in point 5.2.1, although SNS can be considered as leaders in the

Sushi section of the industry, the threat of substitutes is high. SNS market itself as

affordable luxury. Also, the company offers a wide range of products which have

potential substitutes. As most of these substitutes are cheaper than SNS, thereby the

high cost and variety of substitute products available may impact SNS.

Due to the wide variety of choices in the SNS menu, competitors may also include

other firms specializing in a different area of Pan­Asian cuisine. In this regard, SNS may

face competition from thai, chinese and vietnamese restaurants etc.

Due to a large number of competitors in the market, SNS will be depended on customer

satisfaction to ensure customer loyalty, with which the unique brand and concept;

product and the good hostmanship may influence.

50

Wagamama (moderate­to high substitution)

As mentioned, Wagamama does not have many direct competitors offering

noodles and rice dishes. However, like SNS, Wagamama also offers a variety of other

Pan­Asian goods which opens up the market.

Also, with only two outlets in Copenhagen, Wagamama may be regarded as being more

vulnerable in facing competition from both restaurant­chains and locals­alike in

comparison to SNS.

As showed on the map (p.47), for example with the Wagamama outlet in

Frederiksberg, this restaurant is located in a busy area with several dining offers like,

McDonalds (fast food restaurant), 7 Eleven (convenience store), Føtex (supermarket),

Halifax (Burger restaurant) as well pizzerias etc. On the map, we also see that

Wagamama is centered in between clusters of Pan­Asian restaurants.

In Tivoli, people can choose between small food stalls or restaurants such as

Nimb etc. All of which differs in terms of costs for products and services, number of firms

and aggressiveness of the firms in terms of promotion etc.

With this in mind, Wagamama may face intense competition, yet not necessarily from

direct competitors in the form of restaurant­chains with the same products, prices,

promotion etc. The market rivalry, which is threatening the position of Wagamama in

terms of the industry is presumably based on local individual Pan­ Asian restaurants and

other places, where a small range of Pan­Asian dining is available. Furthermore, the

competitive rivalry force of Wagamama shows that competition is low in terms of direct

competition in relation to the core product. However, the availability and accessibility of

restaurants that in general are located within the area of Wagamama outlets may

possibly affect company performance negatively.

Possible competitors for Sticks’N’Sushi and Wagamama

51

Danish Supermarket,

Danish Supermarket chains such as Føtex and Bilka offers customers both the

ingredients for making their own sushi, but also the possibility of buying freshly made

sushi from their deli department. Additionally, customers can also buy pre­made

Pan­Asian inspired dishes or ingredients to make the food themselves etc. (Berlingske,

21 Feb 2012).

7 Eleven.

Currently, the company has over 60 stores located in

The Greater Copenhagen, prices are more affordable than

SNS, Additionally most 7 Eleven stores provide the service

24 hours per day, which is part of their concept, being a

convenience­chain with the purpose of saving customers

time by offering food, beverages etc. on their travels, as

many 7 Eleven stores are located near train stations. In

regards to SNS, 7 Eleven also offers yakitori sticks to a more affordable price in

comparison to SNS (7­eleven.dk, 2016).

Justeat.dk

Justeat.dk provides the leading service of

online takeaway ordering. The company concept

who originates from Denmark, has since 2001

expanded to 15 countries from all over the world.

52

Being dedicated to ensure the customer takeaway experience, JUST EAT has entered

into a partnership with many restaurants from all sorts of cuisines for example the

Pan­Asian with sushi, chinese, thai etc. The many opportunities and delivery service

makes takeaway ordering easy and accessible.

As part of the SushiStainable strategy as a brand value, SNS does offer high

quality products yet for a higher price range for the products. Therefore SNS may not

see the potential development of substitute products as a current threat, making the

threat of substitutes low

Wagamama on the other hand, is in a charges differently for their products who

targets young people. Additionally by only having two outlets, the brand equity of

Wagamama in Denmark may not be as big as internationally etc. Thus, the threat of

substitutes may be deemed moderate to high.

In order to further getting hold of potential customers and decrease the

development of the entry of substitutes SNS and Wagamama offers take away

availability

5.2.2 Threat of new entrants.

The threat of new entrants force refers to the impact and effect of new entrants in

relation to existing firms. As mentioned, a large capital requirements are required in

order for new entrants wishing to compete with already established players. Emerging on

the scene also requires ensuring distribution channels, brand equity development,

promotion and advertising in order to secure and maintaining premium locations.

As for SNS and Wagamama, both companies have developed into restaurant

chains, thus in terms of the threat of new entrants, new companies may either have the

capital requirements for expanding with a large number of individual outlets or have a

53

small number of outlets, who focus on specialities etc. Furthermore, the assessment of

the threat of new entrants also depends on the economies of scale in terms of

distribution, product and brand differentiation and costs of brand development, as well as

assessing the availability of favourable locations.

In Copenhagen, premium locations are scarce and requires high prices in order to

maintain the best locations. Presently, Copenhagen restaurant market centers around a

mix of having a large number of small individual local specialty stores with some bigger

companies with a larger number of individual outlets and strong brands. Both SNS and

Wagamama are huge players in terms of size of the companies and recognition of the

brand, which has granted them access to premium locations around the city, and thus

are tough competitors themselves.

Thus, the threat of new entrants are moderate, as competing against big players

such as SNS and Wagamama requires high capital funds. On the other hand as seen

with LETZ SUSHI the fusion with Dondon created a rival to SNS. More So, as Danish

Pan­Asian industry has a high availability of substitutes makes the Danish market easy

to enter, which becomes a threat for smaller companies. Also, operating costs can vary

depending on the political decisions with regards to taxation,

5.2.4 Bargaining power of suppliers.

Sticks’N’Sushi (low threat)

For example SNS suppliers’ bargaining power of the industry is weak, due to the

company’s SushiStainable strategy and CSR model. Therefore, SNS does not

compromise in terms of lowering the cost in distribution of products, raw ingredients as

well as demands for the suppliers. On the contrary, by putting so much emphasis on

ecology and the aim of using local products, such as Danish vegetables from

Aarstiderne, the bargaining power of suppliers may increase, as an effect. SNS faces

low threat of suppliers as they can easily choose whether to use them or not.

54

Wagamama (low threat)

Using noodles, rice and various types of vegetables and meat, there is a high

level of supply, which means that suppliers are weak. Additionally, Wagamama focus on

innovative technology to enhance customer experience (Qkr! App).However, given the

size of Wagamama, suppliers have little say.

5.2.5 Bargaining power of customers.

The final force in Porter’s measures the bargaining power of the customers in

terms of the effect and dependence that they make for on the business. Doing so, the

force measures the size of customer groups and individual buyers, the substitute

availability and tendency, as well as the take into account if switching to other brands

may be cost affordable.

As shown in 5.2.1, new brands have slowly been emerging on the scene of offering

Pan­Asian inspired dining choices.

SNS and Wagamama are targeting different groups of customers. Where SNS attracts

customers who are educated regarding the product, the Wagamama brand is based on

convenience, simplicity in an informal environment that emphasizes a casual, friendly

and vibrant atmosphere. Also, the market price for the each company’s product is

different.

Sticks’N’Sushi (moderate threat)

In relation to SNS, the company relies on the reputation of the brand and

restaurant experience, service and quality food affecting a high pricing strategy. In this

regard, the customers are able to shift away from SNS rather easily as the switching

cost of doing so is high and therefore seemingly is more affordable to do so.

Additionally, due to a number of competitors substitute availability is moderate as

products can be obtained elsewhere in Copenhagen. However, the individual purchases

does not affect the SNS revenue as much, as it would for a small sized individual

55

business. What is more, the customers dining in SNS restaurants are likely to know what

the brand stands for, hence accepting the price level by getting quality food and service

in return.

Thus, for SNS the bargaining power of customers can be considered moderate based on

the following elements of the force:

­ High switching cost if shifting away from SNS

­ Substitutes are available in high numbers

­ Low Individual customer effect

Wagamama (moderate ­ low threat)

The restaurant company is an internationally well recognized brand, which may

influence customer attraction. Therefore, the individual customer effect if shifting to

another restaurant may not put too much pressure nor influence market pricing as the

individual customer does not carry enough weight in relation to the total revenues.

However, as Wagamama currently only holds two outlets in Copenhagen, the bargaining

power of the Danish customers may have a bigger influence in comparison to the UK.

On the other hand, Wagamama attracts a lot of tourists, who may recognize the brand,

which could make potential customers less price sensitive.

Therefore, the bargaining power of the customers of Wagamama can be considered

rather moderate to high.

­ Low switching cost if shifting away from Wagamama, as many potential

customers consider alternative options in the same price range.

­ Substitutes are available but moderate numbers

­ Low Individual customer effect.

5.2.6 Summing up

56

With the analytical framework of Porter’s Five Forces multiple elements of the

competitive structure and economic environment of the industry has been investigated.

The aim by applying Porter’s Five Forces is to identify an attractive industry with a

competitive structure, which allow relevant player the opportunity for profitability and

determine the optimal position. For example in order to decide whether a company

should enter the market etc. Vice versa, If competition is too strong, it may be rather

unfavorable to enter the market.

Overall the Pan­Asian industry is can be regarded as attractive in the sense that

both bargaining power of buyers and suppliers are low. Furthermore, the rivalry among

Pan­Asian restaurant is low, as there are only relevant few restaurant chains in

Copenhagen, most are individual players.

On the other hand, the industry can be considered unattractive as there are a

fairly high number of firms who offer substitute products. As an effect, the threat of

entrants is moderate to high as many players can enter the industry, keeping in mind that

premium locations are hard to access.

5.3 SWOT analysis With the previous chapters, the paper have sought to outline and establish

characteristics that are associated with the activities of the company in relation to the

competitive landscape of the industry in which SNS and Wagamama operates.

As stressed upon previously, the SWOT analysis focuses on the company itself.

The purpose of a SWOT analysis serves to help companies with decision­making and

strategic planning, by creating awareness of the relationship between the company’s

internal strengths and weaknesses to the threats and opportunities provided by the

external environment.

The next section will on the basis of the findings of the previous chapter, present a

SWOT analysis of SNS and Wagamama to identify what makes them strong players.

5.3.1 SWOT Sticks’N’Sushi

57

5.3.1.1 Strengths

Drawing upon the assessment of the company in chapter 4.1, the strategy of SNS

has created a strong brand image that is well recognized for its high quality and

authentic products and services, which combines both japanese culinary traditions and

the nordic inspired interior design.

Furthermore, the great attention to running the company in a sustainable and

responsible manner in terms of products, suppliers etc gives the company a competitive

edge, which also adds to the strong brand image. In addition, despite placing most

attention to the physical restaurant experience, SNS has embraced new technology by

approaches reaching out to potential customers by offering online services, which

accounts for a great deal of the revenue.

Another strength of SNS is the expansion strategy, through which SNS aims to

establishing new outlets both nationally and internationally. Internationally, SNS is

already present in London and is expected to enter the German market in the fall 2016.

Additionally the the business growth and development strategy being boosted by Danish

venture capitalist Maj invest. In Copenhagen, SNS plans to launch two to three new

restaurants per year, the latest in Amager and the next will be at Tivoli. Having already

established 11 restaurants in Copenhagen, SNS has taken strong market position.

5.3.1.2 Weaknesses

SNS puts much emphasis on their CSR strategy and sustainable and responsible

approach in ensuring as high quality as possible. However, by prioritizing such strategy

the cost of produce and goods are kept high, which then influences the prices for the

products met by potential customers.

In this regard, CEO Kim Rahbek Hansen calls SNS products affordable luxury dining, yet

this may limit the company from maximizing both customer base and revenues.

58

5.3.1.3 Opportunities

As mentioned, the restaurant portfolio of SNS is growing both in Copenhagen and

internationally. Thus by continuing to increase revenue through growth and the

expansion programme to attract new potential customers.

In relation to the SushiStainable strategy, the partnership with Aarstiderne may be one of

many that can secure more profit and customers. Other opportunities that SNS could

take advantage of and where there might be current market gaps is expanding to other

major cities in Copenhagen, which would increasing the awareness of the company.

5.3.1.4 Threats

Although the main competitor that may pose a threat to SNS’ business is LETZ

SUSHI, being a restaurant­chain focusing on Japanese­sushi, SNS also faces

competition from large number of smaller businesses, both new and already established

ones, who focus on the Pan­Asian cuisine.

Strengths ­ Profit ratio increased ­ SushiStainable ­ Central Locations ­ High quality product ­ Online presence ­ Concentration in DEN

Weaknesses ­ Differentiation/ Unique selling point ­ High cost for produce and goods ­ High product cost

Opportunities ­ Expanding programme ­ Market Growth ­ Strong Portfolio ­ Partnerships with suppliers

Threats ­ High number of competitors

5.3.2 SWOT Wagamama

5.3.2.1 Strengths

59

Wagamama focus on product affordability by targeting the budget of younger

groups of people and students.The brand is highly recognized internationally and may

attract consumers as an effect. Also the partnership with Just­eat may function as a

communicative channel to reach customers who does not reside in areas with

Wagamama restaurants.

5.3.2.2 Weaknesses

Wagamama is a well known brand, yet in Denmark the company is only sitting on

two physical outlets located in Copenhagen. Although having secured premium

locations, it is a weakness that the Wagamama franchise is not bigger, as concentration

lies elsewhere e.g US.

5.3.2.3 Opportunities

Wagamama has a focus on becoming a global brand name. More entries globally

may affect the global market position and the danish interests for more. Additionally, new

technology can open new doors for Wagamama to better the customer experience.

5.3.2.4 Threats

Main threats to wagamama is the number of Pan­Asian restaurants and other

competitors in the area. Although clusters of restaurants may create a domino effect,

getting people to spend more, having a high number of potential substitutes is a threat.

Furthermore, being a UK franchise the Danish Political can have influenced the level of

activity from Wagamama, as wages are high as well as taxation etc.

Strengths ­ Brand recognition ­ Location ­ Low Prices ­ Online Presence

Weaknesses ­ Low number of outlets ­ Main concentration in UK

Opportunities ­ A Global Brand

Threats ­ High number of competitors

60

­ Aims for global market position ­ Innovation

­ Rise in food prices, taxation, wages

5.4 Sub Conclusion of Strategic analysis In the light of the strategic analysis, the paper has sought to investigate

characteristics related to the Danish market as well as the Pan­Asian restaurant industry.

5.4.1 The current business environment The PEST analysis has provided an overview of elements in the external

environment, which are deemed relevant in terms of SNS and Wagamama in relation to

favorable or unfavorable effects of such element. In this situation, the PEST analysis

reveals that cultural activities are important for danes. Moreover, especially the economic

and social factor shows that not only does the average dane cook less at home, students

and young groups may have a higher budget in comparison to most countries, as danes

do not have to pay for education but instead receives a monthly student grant.

The competition within the Pan­Asian restaurant industry through Porter’s Five

Forces, showed that SNS and Wagamama has a strong market position.

However, SNS especially stands out from most other competitors including

Wagamama, as the restaurant­chain is concentrated on the Danish market, and has

grown in size over the past 20 years. The most direct competitor is LETZ SUSHI.

The danish Wagamama outlets are franchise based, meaning that general decisions e.g.

CSR strategy etc comes from the UK based headquarters. However, Wagamama is a

well known brand and is located in places with lots of activity. Wagamama only has two

outlets so far, however there seemingly aren’t any direct competitors. On the other hand

Wagamama faces competition in relation to the broad variety of Pan­Asian restaurant

choices, including supermarkets, online services webpages etc.

61

In relation to the purpose of the research question, the SWOT analysis of both

companies helps identifying directions to take, priorities as well as possibilities in the

context of the threats and possibilities to either success or decline, which new entrants

may take advantage of.

Chapter 6 Discussion Based on the in depth analysis above with the use of prominent marketing

concepts, the following chapter aims to discuss and establish a set of criteria or

requirements for new companies wanting to enter the Danish market ­ more specifically

the Danish Pan­Asian restaurant industry. For the discussion, the framework of the 4P’s

will be put to use to ensure the best conditions possible.

6.1 What actions to take

6.1.1 Product

In terms of the product, new companies entering the Danish Pan­Asian restaurant

market, would have to take into account the prominent players in the industry.

As identified with the two companies SNS and Wagamama both are strong brands with

well a developed product.

In terms of the Pan­Asian restaurant industry, SNS represents Japanese­sushi.

The analysis above have shown that the company can be considered to be very strong

player in the Danish market. SNS meets competition from many Sushi­restaurants in

Copenhagen, although mostly smaller in size, as Sushi is extremely popular. Yet with a

high number of competitors, SNS is challenged in terms of the unique selling point and

differentiation. On the contrary, the company has met this challenge by emphasizing high

quality, sustainable and responsible products, offering affordable luxury.

62

Wagamama is focusing on serving rice and noodles dishes, and is inspired by

Japanese ramen shops to enhance the customer experience. The product of the

company is characterized by high quality convenience dining. Still, the quality of the

product does not affect the price, which is key to the global brand recognition.

Based on the analysis it is rare that a Pan­Asian restaurant in Denmark does not offer

Sushi. Also, the concept of emphasizing Japanese ramen shops and menu places

Wagamama in a position where it seemingly does not have any direct competitors.

On the contrary, neither rice dishes nor Noodle dishes are rare products in Pan­Asian

restaurants industry, which can pose a threat if customers does not place importance on

the difference between Japanese, Vietnamese, Thai, Korean or Chinese etc

Should new companies choose sushi as the core product?

If a company chooses Sushi as the core product, the competitive landscape will

be strong. In Copenhagen there are several sushi restaurants, who have secured central

locations and attempt to attract many of the same customers.

As seen with CC­Sushi, they offer all you can eat for affordable price in both weekdays

and weekends. SNS and LETZ sushi are examples of dominant players, who date far

back and have developed into restaurant­chains with many outlets and more resources

than smaller restaurants. Thereby, they can prioritize differently to differentiate

themselves from the rest.

Should new companies choose noodles and rice dishes as the core product?

As opposed to choosing sushi, drawing on the concept of Wagamama, will

position new companies in a situation with less direct competitors. Although facing a

more broad competition, new companies can anticipate more room and time to grow with

regards to promotion, innovative technology etc. This will likely produce a competitive

advantage.

6.1.2 Price

63

As the competitive environment in the Danish Pan­Asian restaurant industry is

strong.

The implications of such great numbers of available substitutes stresses the importance

of the loyalty of customers. Therefore restaurants must identify what attracts market

audiences and how to speak with them in order to create a competitive advantage over

others. Pricing strategy is one area that can have an effect on the competitiveness of a

business.

As mentioned, the price level for SNS products is influenced by the cost to each

activity. SNS has proclaimed that high quality food and service is only possible due to

the sustainable and responsible approach. This requires higher prices. So far, the

pricing strategy of SNS works as the company presents positive revenues. In addition

the strategy can be regarded as taking into account, the socio­cultural trends of the

Danes, to pay a high price for higher quality and a more sustainable product.

Identifying their own product as affordable luxury, SNS can be regarded as having

high­end image and thereby, speaking to a certain market audience with more money.

For Wagamama, pricing strategy targets a different market audience. The young people

the students and people who wants a quick, convenient and tasty quality meal. Being in

a different price level means that Wagamama can attract a different market audience

than for example SNS, although the Brand recognition could potentially hold higher

prices.

A new company must take into consideration the implications of choosing a

pricing strategy that identifies market audiences, differentiation, the unique selling point

of the product.

Should new companies have high prices?

64

Through the PEST analysis, the paper identifies that there are favorable elements in

having a high pricing strategy. However, political factors such as taxation, VDT and

EcoTax as well as employment laws influence the competitiveness of new companies.

Furthermore, a high pricing strategy will raise the expectations of customers.

On the contrary, public health questions and working for a sustainable future is

something that Danes are willing to pay more for. Additionally, customers respect the

unique experience, high quality and atmosphere. This has given SNS a competitive

edge.

Should new companies have low prices?

With Wagamama the pricing strategy takes advantage of another socio­cultural

trends, by being healthful, convenient and affordable. Especially the latter targets the

market audience who pays the most visits to restaurants. As a new company capital may

be limited and in order to attract most customers a lower price level will target most

groups. In this regard lowering the prices will potentially attract customers, yet it may not

give the competitive edge, unique selling point or differentiation necessary, as substitute

threats are strong. Thus, if the new company is able to promote and attract customers

with a low pricing strategy, the company will have to decide whether to increase prices

and becoming a premium brand or keep low prices as Wagamama have done it.

6.1.3 Place

As seen with the social factors of the PEST analysis, Copenhageners spend the

most money on eating out in comparison to other regions in Denmark.

One of the strengths of SNS is that the company now has 11 outlets in

Copenhagen, and plans to expand further due to the company’s expansion programme,

hence the coming outlet in the new food court in Tivoli Gardens.

65

In this regard, the concentration of SNS restaurants in the capital help to ensure the

market position and brand recognition of the company, which is vital for reaching out to

potential consumers.

Although being a highly recognized brand, Wagamama faces challenges as the

company only has two outlets in Copenhagen. Although located in busy places with a

high potential for tourists audiences, for example Tivoli Gardens, Wagamama is primarily

concentrated on creating a global brand name, with outlets in many countries such as

the US, rather than concentrated on gaining a deeper market foothold in Denmark.

How should new companies consider the elements of Place?

Going forward, premium locations are limited in Copenhagen, but financially they

are not impossible to obtain as the rent for example is lower in Denmark than in the UK.

Danes spend a lot of money eating out. Copenhageners the most.

Favorable is also the attractiveness and buzz about Copenhagen, which attracts many

people from all over the world, who are willing to spend money as the majority may be

tourists. The possibilities for revenue is high.

As much market potential as Copenhagen offers for success, the capital also

offers risks of failure. New companies should aim to secure premium locations where the

potential for attracting Danes and tourists is highest. However, most of these are likely

occupied perhaps by a competitor as many Pan­Asian restaurants have acknowledged

the potential of the city likewise the Danes.

Considering other major cities such as Odense and Aarhus might be of relevance,

although these cities does not attract as many customers and less eat out. On a side

note, both SNS or Wagamama are only present in Copenhagen.

Given the internal environment and operational element of the “Place” factor, new

customers must have the ability to adapt to new market conditions. Also, they must

66

anticipate that customers are value maximizers who seek out the unique experience.

Thereby, customers are likely to perceive the beneficial value and the actual cost value

in relation to choosing for example SNS or Wagamama and not seek out other

alternatives.

Both SNS and Wagamama are examples that place equal emphasis on the

product and importance of the physical environment; interior style and service to create a

unique customer experience, and recognition of the brand. SNS has emphasized the

good hostmanship, which addresses high demands for recruiting the right people,

something which may be time consuming and economically demanding for new

companies to do. Nonetheless, including service and hostmanship in a new company’s

business strategy may turn out to be a valuable tool in providing a competitive edge, by

ensuring high satisfaction and high loyalty of customers.

6.1.4 Promotion

As mentioned the promotion element of the marketing mix involves all activities

and communication about the product to the consumer. Raising awareness of the

product and services offered, thereby works as a catalyst in increasing sales, brand

recognition and to survive.

Although, neither SNS or Wagamama openly states that they place much

emphasis on promotion, their activities whether through expansion programmes, CSR

strategy, partnerships, innovative technologies and PR participation all contribute in

building buzz around their respective brands.

How should new companies use Promotion to substitute competitors?

As competition in the Danish Pan­Asian restaurant industry is high the

promotional side of the 4P’s concept is crucial, in order to build awareness of the

products and services to customers as well as to persuade them to purchase the

product.

67

Stressing the importance of promotion, a new company must know its audience

and market condition to anticipate trends and develop a promotional strategy. In this

regard, advertisements, PR, sales promotions or partnerships are some of the

techniques to communicate with the customer and creating noise about a product to the

customer. Such promotion builds the awareness of the product.

In persuading the customer to purchase, the promotional decisions of a new

company, must consider how to showcase and educate the market audience that the

values of the customer has been meet ­ as identified in the PEST analysis. Such

promotion builds the awareness of the brand. Put into perspective, the promotional

activity of SNS and Wagamama concerns building up the image and brand recognition.

SNS stands for sustainability and responsibility, whereas Wagamama represents an

internationally recognized brand.

Taking the product lifecycle management into account, a new company entering

the Pan­Asian restaurant market would firstly create noise about the product. Secondly,

it would attempt to differentiate the products and services from those of the competitors

in the market.

On the contrary, most competitors in the Pan­Asian restaurant industry are of

smaller size. Due to the number of competitors and many of these are in phase one,

where the product is introduced to the market, or slowly transitioning to phase two where

differentiation becomes critical.

All things considered, the promotional method used should aim place the new

company ahead of others, by make consumer switching cost high. Thereby, as the threat

substitutes are high as well as the bargaining power of suppliers and customers are high

for new entrants

6.2 Sum up

68

Based on the previous section, we advise new entrants to choose a product that

will limited the number of direct competitors. In addition, we advise companies to choose

a low pricing strategy in order to reach most people. Copenhagen already have a high

threat of substitutes in the Pan­Asian industry, most of them are of smaller size.

Therefore, in order to differentiate a new product, the company promote itself by

incorporating innovative technology, designs or through sales promotion. For example

the promotion tactics will in this regard use online media and TV for advertisements and

sales promotions as most young people, students etc. uses this frequently.

A new company could also go down the same path as LETZ SUSHI, who fusioned with

another Sushi company, Dondon, which could provide a competitive advantage.

Moreover, the Danish Pan­Asian restaurant market do have room for another player,

with the capacity to compete with the bigger guns industry.

Chapter 7 Conclusion

The market environment that restaurants are operating in determine the

opportunities for success or risk failure. The external environments can change rapidly

as seen with the many variables of the PEST analysis, which requires that companies

has the ability and necessary resources to adapt to changes or anticipate new market

trends.

On that account, the Danish market is unique with regards to taxation, approach

sustainability, public health, employment laws etc. but also in terms of the social and

economic situation all of which can influence the business operation.

The Pan­Asian restaurant industry, is highly competitive which makes the appeal

of Pan­Asian food products less premium. However, based on the product life cycle,

competition in this market may have happened recently, as only a few Pan­Asian

restaurant businesses have transitioned into the third stage, established market players

such as SNS and Wagamama, for example.

69

With this premise, this paper has investigated how to enter the Danish Pan­Asian

restaurant market by assessing the competitive attractiveness of the industry as well as

the conditions that may affect the business operation. Thus findings, show that new

companies must develop their unique selling point and promote their products and

services, as the substitute threat is high for smaller individual restaurants in the Pan

Asian industry. Thus in order for new companies to get there, they must be able to adapt

and anticipate to new market conditions from which to build up the awareness brand,

need for the product and secure customer loyalty e.g by embracing customer value,

generate sales and profit and reduce the risk of failure,

All things considered, whether the Danish market is favorable or unfavorable is

depended on the evaluation of the ability of the company to face a set of external factors

in connection the internal factors, in order to assess developing a functional business

strategy, which might boost the competitive advantage of company.

After working with this project, proposals for further research would revolve

around a focus on the customer demand in order to identify a target audience and

develop a marketing and promotional strategy.

We could also deal with the subject by using companies who have failed or aren’t as

successful as SNS or Wagamama to exemplify the Danish market and Pan­Asian

restaurant industry from other perspectives.

Bibliography: Books

Cresswell, John W. Research Design. Thousand Oaks, California: SAGE publications,

2014. Print.

Daft, Richard L, Jonathan Murphy, and Hugh Willmott. Organization Theory And Design.

Andover [u.a.]: Cengage Learning EMEA, 2014. Print.

70

David, F.R. and 戴维, 2001. Strategic management: Concepts and cases.

Nygaard, Claus (red.) (2005) Samfundsvidenskabelige analysemetoder. 1st edition.

Forlaget samfundslit­teratur, Frederiksberg.

Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., 2005. Marketing: Concepts and

strategies (p. 850). Houghton Mifflin.

Elliott, Richard H, Larry Percy, and Simon Pervan. Strategic Brand Management, 2015.

Print. Pp. 123 ­ 140

Leinsdorff, Torben. Erhvervsøkonomi ­ I Grundtræk. Kbh.: Handelshøjskolens Forlag,

2003. Print.

Paul Hague. A practical guide to market research, 2006, Pp. 59 ­ 74, chapter 4

Available online

https://www.b2binternational.com/assets/ebooks/mr_guide/04­market­research­ch4.pdf

Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe,

K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for

sustainable development of renewable energy. Renewable and Sustainable Energy

Reviews, 38, pp.335­347.

Journal Articles

Bestor, Theodore C.. “Supply­side Sushi: Commodity, Market, and the Global

City”.American Anthropologist 103.1 (2001): 76–95.

Web, 14.03.2016 Available online

http://www.jstor.org/stable/pdf/683923.pdf?acceptTC=true

Glessner, L.L, Gillis, Denise, “The Knowledge Product Lifecycle and Strategic

Dashboard”. Continuing Higher Education Review, vol 76, 2012. Web. 10 May 2016.

Available online at

http://www.utexas.edu/ce/files/images/Glessner_UPCEA_Article.pdf

Hsin­I Feng, Cindy. "The Tale Of Sushi: History And Regulations". Comprehensive

Reviews in Food Science and Food Safety 11.2 (2012): 205­220. Web. 14 Mar. 2016.

71

Available online

http://onlinelibrary.wiley.com/doi/10.1111/j.1541­4337.2011.00180.x/epdf

Noguchi, Paul H. "Savor Slowly: Ekiben: The Fast Food Of High­Speed Japan”.

Ethnology 33.4 (1994): 317. Web. 15 Mar. 2016. Available online

http://www.jstor.org/stable/pdf/3773902.pdf?acceptTC=true

Internet pages

7­eleven.dk, accessed 22 May 2016,

http://www.7­eleven.dk/om­7­eleven/dk­historie/

Armstrong, Ashley. "Wok­Tossing Wagamama Sales Rise As It Downplays Float Talk".

Telegraph.co.uk. N.p., 2015. Web. 02 May 2016.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11759122/W

ok­tossing­Wagamama­sales­rise­as­it­downplays­float­talk.html

Berlingske 15 Jan 2010, accessed 22 May 2016,

http://www.b.dk/tidspres­faar­os­til­koebe­faerdigmad

Berlingske 21 Feb 2012, accessed 23 May 2016,

http://www.business.dk/foedevarer/supermarkeder­kaprer­salg­af­frisk­fisk

Buttler, Morten. "Sushi På Dansk Storhitter I Storbritannien". Borsen.dk. 9 Apr 2014

Web. Accessed 6 May 2016.

http://borsen.dk/nyheder/hvad_kan_vi_danskere/artikel/11/79423/artikel.html?hl=U3Vza

Gk7c3VzaGk

Campaign, Wagamama targets youth with competition to design new uniform, 20 Aug

2009, Accessed 13 April 2016,

http://www.campaignlive.co.uk/article/928378/wagamama­targets­youth­competition­desi

gn­new­uniform

Cgapeach, “´Wagamama will be a global brand´­ Campbell”, 29 Feb 2016. accessed 14

April 2016,

72

http://www.cgapeach.co.uk/peach­report/2016/3/3/wagamama­will­be­a­global­brandcam

pbell

DanskHandelsblad, Seks ud af ti vil undgå varer med klimaafgift, 18 May 2016, Web,

accessed 20 May 2016,

http://dhblad.dk/seks­ti­undgaa­varer­klimaafgift­18/05­2016

Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., 2005. Marketing: Concepts and

strategies (p. 850). Houghton Mifflin.

Evening standard, How chain restaurants Byron, Wagamama and Carluccio’s feed

London,19 Sep 2014, accessed 12 April 2016,

http://www.standard.co.uk/goingout/restaurants/how­chain­restaurants­byron­wagamam

a­and­carluccio­s­feed­london­9743896.html

Findsmiley accessed 25 April 2016,

http://www.findsmiley.dk/en­US/Forside.htm

Jensen, H. and Eva J., "To Ud Af Tre Danskere Spiser Stort Set Aldrig Ude". www.b.dk.

N.p., 2016. Web. accessed 10 May 2016.

http://www.b.dk/nationalt/to­ud­af­tre­danskere­spiser­stort­set­aldrig­ude *

Just­eat.dk, accessed 13 April 2016

https://www.just­eat.dk/restaurants­wagamama2000/menu?opt=0a765732

Learningmarketing n.d., accessed 7 April 2016,

http://www.learnmarketing.net/marketingmix.htm

Marketing91 2016, accessed 7 April 2016,

http://www.marketing91.com/service­marketing­mix

Newsbreak 4 Nov 2014, Vækst hos sushikæde: Mere dansk sushi til udlandet

Accessed 8 April 2016,

http://newsbreak.dk/vaekst­hos­sushikaede­mere­dansk­sushi­til­udlandet/

Politiken.dk , Etisk Råd: Klimaafgift bør gøre oksekød dyrere, Politiken.dk, 25 April 2016,

accessed 2 May 2016,

http://politiken.dk/forbrugogliv/forbrug/tjekmad/ECE3175069/etisk­raad­klimaafgift­boer­g

oere­oksekoed­dyrere/

73

Politiken , Fedtafgiften var uden betydning for priserne, 26 Jun 2014, accessed 12 May

2016,

http://politiken.dk/forbrugogliv/forbrug/indkoeb/ECE2326218/fedtafgiften­var­uden­betydn

ing­for­priserne/

Politiken 20 Nov 2010, Sushilaks behøver ikke længere fryses, accessed 20 May 2016,

http://politiken.dk/mad/madnyt/ECE1113113/sushilaks­behoever­ikke­laengere­fryses/

Recruiter 24 Jun 2015, Wagamama: full of Eastern promise, accessed 17 April 2016,

http://www.recruiter.co.uk/news/2015/07/wagamama­full­of­eastern­promise/

Rosenholm, A.B, "Danskernes Kulturforbrug: Din Bopæl Afgør, Hvor Kulturkronerne

Bruges", 26. Aug 2015, Penge.dk. N.p., 2015. accessed 12 May 2016.

http://penge.dk/familieokonomi/danskernes­kulturforbrug­din­bopael­afgor­hvor­kulturkro

nerne­bruges

Sennov S,, Populære kæderestauranter kører uden overenskomst, Politiken.dk, 12 April

2015, accessed 12 May 2016,

http://politiken.dk/oekonomi/virksomheder/ECE2622947/populaere­kaederestauranter­ko

erer­uden­overenskomst/

Sitecore, 2012, The wagamama story began in 1992 when its first restaurant opened in

London’s Bloomsbury; now the brand spans across 17 different countries, accessed 15

April 2016,

http://www.sitecore.net/customers/consumer­goods/wagamama.aspx

Sticksnsushi n.d., accessed 8 April 2016,

http://www.sticksnsushi.com/about_us/about_us.html’

Sticksnsushi n.d., accessed 8 April

2016,http://www.sticksnsushi.com/about_us/responsibility/strategy.html

Sushi.dk n.d., accessed 10 April 2016,

http://www.sushi.dk/nyhedsbrev.html

The telegraph 23 Jul 2015, accessed 10 April 2016,

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11759122/W

ok­tossing­Wagamama­sales­rise­as­it­downplays­float­talk.html

74

The thecaterer n.d., Catering & Hospitality News, accessed 12 April 2016,

https://www.thecaterer.com/c/business/companies/33806/wagamama

The official website of denmark, accessed 7 April 2016,

http://denmark.dk/en/society/government­and­politics

Tivoli n.d., accessed 10 April 2016,

http://www.tivoligardens.com/en/mad/wagamama

Universitypost accessed 22 May 2016,

http://universitypost.dk/article/su­grant­can­you­get­it

Visitcopenhagen accessed 27 April 2016,

http://www.visitcopenhagen.com/copenhagen/customs­and­vat

Voxpopme, Brand review: Wagamama, accessed 20 April 2016,

https://site.voxpopme.com/2014/12/18/brand­review­wagamama/

Wagamama.dk, accessed 10 April 2016,

http://www.wagamama.dk/restauranter/frederiksberg

Wagamama.dk, accessed 10 April 2016,

http://www.wagamama.com/our­menu

Wagamama.com n.d., accessed 10 April 2016,

http://www.wagamama.com/restaurants?q=london

Letzsushi.dk n.d., accessed 14 May 2016

http://www.letzsushi.dk/om­letz­sushi/historien­bag/

Publications

Food service europe, Food and food service industry 2011, Pp.29­ 31

Available online: http://www.sushi.dk/uploads/cmslinkupload/45_file_9792.pdf

Horesta, “Danskernes udespisevaner i 2012, Sep 2013, Tendens. Available

online:http://www.horesta.dk/~/media/Filer/Materialer/tendens/2013/UdespisevanerOkt20

13_ver2.ashx .

Sticks N sushi, What we’re fishing for…, 2010, Pp.1­ 5

Available online: http://www.sushi.dk/uploads/pg_content/16376_link_1558.pdf

75

Sticks N sushi, FREMTIDEN SER GRØN UD FOR STICKS'N'SUSHI, 11 Apr 2016

Available online: http://www.sushi.dk/uploads/cmslinkupload/126_file_9875.pdf

Sticks‘n’Sushi holding A/S, 2015, Pp.1­ 55 Sticks’n’Sushi Corp. annual report,

Nansensgade 49, København K:. Beierholm, Jakob Vestergaard Jensen. Available

online:http://regnskaber.virk.dk/20583823/ZG9rdW1lbnRsYWdlcjovLzAzLzFkLzYzL2IwL

zk3L2ZlNjAtNDBiMy1hZWQ4LTg3YjRiNTdmNzBmNQ.pdf

Majinvest, Maj Invest Equity og Sticks’n’Sushi indgår partnerskab, 3 Jun 2013, Pp.1­ 2

Available online,

http://majinvest.com/om­maj­invest/nyheder­og­presse/2013/maj­invest­equity­og­sticksn

sushi­indgaar­partnerskab.aspx

OECD, Taxation, Innovation and the Environment: A Policy Brief, 2011, Pp.1­ 8

Available online:

http://www.oecd.org/env/tools­evaluation/48178034.pdf

Propel quarterly, Upping sticks, 2014, Pp.58­ 60

Available online:

http://apieandapint.com/wp­content/uploads/2014/12/Propel­Quarterly­Winter­2014­Stick

sNSushi.pdf

Images and figures

Porter’s Five Forces figure p. 18: http://www.appladesign.net/domains/create//documents/Picture14_488.png

SNS photo p24, 27: http://www.sushi.dk/uploads/pg_rel/545_value1_1589.jpg

Wagamama photo p. 31,33, http://mediastorage.bauermedia.co.uk/88/c8ec1/43f54/2b0ac/e1c0d/2660b/ec1d5/wagamama_778x436.jpg?14332426

65, http://www.hpw.co.uk/userfiles/gallery/waga6.jpg,

7 Eleven p 52: http://rmagazine.com/wp­content/uploads/post/free­7­eleven­coffee­all­week/7­eleven.jpg

LETZSUSHI p 48: https://roomservice2.s3.amazonaws.com/RestaurantLogo/53917/sKrjQ4VPUm3Fs5auBEAA/Original.png MAP p 50: Google docs, own search

76

Danish Supermarket p 52: http://business.bmcdn.dk/media/cache/resolve/image_960x545/image/13/132212/4910387­fisk_business.jpg,

https://clever.dk/wp­content/uploads/2015/08/case­dansk­supermarked2.jpeg

Just­Ea p 52t: http://www.greenspizza.com/wp­content/uploads/2015/10/JUST_EAT_Lonley_Logo_RGB_72dpi.png

CC Restaurant Sushi & Wok p 48: http://ccrestaurant.dk/sldfjiejkkck789ssshhuyqill1112/wp­content/uploads/2014/03/logo1.png

77

Appendix A

Sticks’n’Sushi menu menu http://www.sticksnsushi.com/takeaway/sticks.html

http://www.sticksnsushi.com/takeaway/set_menus.html

http://www.sticksnsushi.com/takeaway/sushi/nigiri.html,

78

Appendix B

Wagamama menu http://www.wagamama.com/our­menu/omakase , http://www.wagamama.com/our­menu/ramen

79

http://www.wagamama.com/~/media/WagamamaGlobal/Food/Menus/uk­main­menu.pdf

80

Appendix C

Disposable income by income interval, sex, unit, region, age and time

2010 2011 2012

All

Men and women, total

Average income for persons in the group (DKK)

Province Byen København

Total 191 427 196 345 200 426

15­19 years 30 367 29 842 29 288

20­24 years 99 182 98 946 99 261

25­29 years 149 221 150 117 151 640

30­34 years 208 588 211 588 215 025

35­39 years 240 555 245 839 250 812

40­44 years 250 960 257 977 265 348

45­49 years 251 007 260 838 267 515

50­54 years 253 040 259 217 266 815

55­59 years 245 471 254 903 261 303

60­64 years 228 646 237 319 245 917

65­69 years 186 634 206 244 213 547

70­74 years 179 500 183 877 192 826

More than 74 years 169 307 176 517 182 055

81

24­5­2016 Danmarks Statistik , www.statistikbanken.dk/INDKP6

82