The Impact of Diversification in Strategic Management on The Catering Industry: A Case Study of Haidilao

Abstract

The catering industry began to stagnate as a result of COVID-19. Faced with the competitive environment, F&B brands began to adopt various strategic management methods, of which diversification was an effective strategy. This study mainly examines the impact of diversification strategies on the development of the catering industry, taking the well-known hot pot restaurant Haidilao as an example. Based on the theory of corporate strategy management, it analyzes the business situation and the implemented diversification strategies of the company. Firstly, this paper discusses the current situation of Haidilao’s restaurants, including the development status and business operations, and evaluates and analyzes the restaurant's sustainable competitive advantages using the VRIO model. Finally, it explores how the management of Haidilao implements diversification strategies, mainly including the analysis of the shortcomings of store growth strategies, how to apply diversification strategies to seek new growth points and provides recommendations for the currently implemented strategies. Through the case study of Haidilao, this paper provides insights into diversification strategies in enterprise management, which provides new ideas and methods for the management decisions of related enterprises.