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To evaluate the way Levendary Café has entered to China, I would like to use “SWOT” analysis to figure out how it is doing.
Strength: Levendary has a very clear and unique business mode which is targeted at high level customer group. It has a very successful business in the United States. There are stores spread across the country. The high-quality food and hospitality service are becoming Levendary’s brand and reputation. The company is willing to dedicate themselves and build a culture of “delighting the customer.”
Weakness: First, the most important issue in China is “Localization.” There are some services or products are useless in the Chinese market. For instance, most Chinese people don’t have a peanut allergy or a gluten allergy. So there is no need to provide these types of food, because they don’t need this kind of service. Just like African people don’t need to go to tanning salons. Secondly, Levendary Cafe is spreading too fast in China. It is getting short-term profit. But in the long run, some stores will close because of less training, nonsufficient supply and other issues. Levendary Café is a delicate brand. There are a lot of good qualities that cannot be copied in a flash. If the foundation not solid, the top will collapse sooner or later. Opportunity: With economic globalization developed, more and more Chinese people are interested in American food. They are curious about what American people are eating and prefer to get the food exactly the way it is in America. Besides, China already has a lot of foreign restaurants spreading everywhere. Most of them have changed flavors to make the food more acceptable for Chinese, which in some parts loses its original taste. Chinese people are more open to new things. They get more familiar with American people’s dietary custom after eating many years of McDonald, KFC and Pizza Hut. Now they want to try something that is exactly the same as “Made in America”.