Analysis Of Competitive Strategies and Challenges in The Catering Industry: A Case Study of Haidilao

Abstract

Haidilao, as a leading enterprise in China’s catering industry, has developed from 1994 to now and has stepped out of a unique competitive advantage of its own. Haidilao has grown rapidly to become a legend in the restaurant industry based on its excellent service and innovative business model. However, Haidilao faces new competitive advantages and challenges in the modern consumer environment. Numerous studies have shown that the success of Haidilao is inseparable from its series of characteristic value-added services, which are even regarded as the symbol of its brand. This study analyzes Haidilao’s competitive advantages, including its superior service innovation, unique product strategy, clever marketing strategy, and globalization strategy. It also examines the challenges faced by Haidilao, such as uncertainty risk, cost and human resource management, and product innovation. Finally, the study recommends improving the firm’s core competencies and seizing the digital economy’s opportunities.