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The Innovative Competitive Advantage: A Case Study of Two Pioneering…
The Innovative Competitive Advantage: A Case Study of Two Pioneering Companies
Introduction
Definition of Innovative: The introduction of something new or a new idea, method, or device
Challenges: the implementation may result in failure; it requires the ability to understand and to read the market, and the customer
Pricing Strategy at Little Bay Restaurant
What
Its about a restaurant which used the Pricing Strategy as a promotion choice in a short period of time
Where
In the Farringdon District of London
When
The recession in 2009
Why
Due to the economic downturn, the restaurant had to come up with a new strategy to overcome the situation.
The owner believed that people should have the oppotunities to eat even if they lost their jobs
How: The guests will pay for the food according to their wanted price, the price will be decided by the guests.
Overview about the situation
Evelyn, Matt, and Cassandra wanted to find somewhere for luch.
At the chosen restaurant, 3 of them were surprised because the menu didn't include in price of dishes.
They were suspiciously and expectly taking and waiting for the orders.
Benefits from the pricing strategy
Normally the customers paid more than what the owner would have charged.
The promotion did gain lots of attention from local community and expansive media --> saved 148,000 pounds of free publicity
Create values
PWYW models focuses on consumers's feeling of altruism, fairness toward the organization, self-signaling, social welfare anf preferences --> build customer loyalty
Create emotional appeal of building relationships by decreasing the risks associated with the cost of dinning out
Innovative Operation Strategy at Eatsa Restaurant
Overview about the situation
3 of them had a bussiness trip to San Francisco
They had very little time for the relaxation because of the limited time
The restaurant have to be very quick, light, and healthy and they found out Easta
They were not familiar with the new way of order as well as the technology used in the restaurant but they were happy and very satisfied with the result because it meet all the previous mentioned demands.
What
Easta is a restaurant where adopted innovative strategies for operational efficiency and cost effectiveness.
Where
San Francisco, introduced in 2005
Why
The workers's salaries in San were increasing rapidly, normally took 30% of the total cost of conducting business.
The owner wanted to minimize labor costs leading to much higher profit margins
How
There are no servers taking orders
The service model depends on technology via the virtual kiosk and a section of cubbies for food delivery.
Aim for customer's health with 8 menu items
Target on the busy workers in the financial district who didnt pay much attention to healthy eating habit
Benefits of the Service Innovation
Create compatitive advantage
Effectively manage resource constraints
Create a demand from customers to have more efficient, productive, and cost effective restaurant delivery systems
Cost reduction