The Pestel Analysis Of Old Chang Kee In Singapore

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Introduction

This report is about Old Chang Kee in Singapore. Old Chang Kee is in the food industry that focuses on selling hand-held food. Old Chang Kee has catering services and also provides local breakfast set menus. Its curry puff is one of Singaporean’s favourite. The purpose of the report is to talk about the Porter’s 5 Forces Analysis, strategic recommendation and the PESTEL Analysis of Singapore which can be found at Table 1. The structure of the report also includes Country Background, Company Background and conclusion.

Country Background

Singapore is a multi-racial nation which had survived through the World War II and is known as the little red dot now. Singapore is famous in the tourism industry due to her tourist attractions.
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Competitive rivalry within an industry – Low

Although there’s a lot competitor around Singapore ever since Old Chang Kee started it businesses till now, some of the competitors of Old Chang Kee are Tanglin Crispy Curry Puffs, J2 Crispy Curry Puff, and Richie’s Crispy Puff etc.

The reason why is that Old Chang Kee competitive rivalry is low, it’s because Old Chang Kee sells more varieties of products than just curry puffs. Competitors mainly sell only its signature curry puffs which give lesser varieties to consumers.

The second reason is that Old Chang Kee has more than 50 outlets in Singapore and 13 outlets in the overseas such as Indonesia, Malaysia and Australia. While the competitors outlet are mostly located in a coffee shop and only able to attracts consumers around that area.

2. Threats of new entrants – Low

As Old Chang Kee is already quite a strong brand and is well-known in Singapore, it would not affect much to the businesses. As Old Chang Kee have a lot of outlets around Singapore including shopping malls, MRT Stations and even overseas outlet.

The reason why Old Chang Kee is threats of new entrants is low is because being a strong brand, new competitors will find it hard to compete against Old Chang Kee and it is very expensive to make a strong brand
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Finding different suppliers that provide the similar ingredients can lead to having different taste in the product itself.

Reason why bargaining power of supplier is high is because; suppliers that provide ingredients to Old Chang Kee can stop anytime and not deliver the items for Old Chang Kee. And Old Chang Kee would have a hard time finding another supplier that provides the same ingredients that it needs in such a short time. And as long as suppliers continue to provide ingredients for company, Old Chang Kee would not have to worry about having no ingredients to prepare for the day of sales. Another reason is because harvesters that are growing of raw products such as potatoes, sweet potatoes and it might not produce it if there’s a climate change occurred during the seasons of harvesting. Therefore if such thing happens, supplies can’t provide ingredients for the businesses.

5. Bargaining power of customers – High

In this part of the model, the bargaining power of customers is one of the forces that are affecting the businesses of Old Chang Kee. Consumers/customers can easily move from Old Chang Kee to other brands because it is inexpensive to do so. Therefore, customers can stop going to Old Chang Kee because there are other substitutes available around Singapore, such as selling the similar products from competitor’s

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