Haidilao is currently focuses on sustaining technology

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It paid close attention to consumers’ innovative products on social platforms and added them to the official menu. Haidilao imitated Alibabas self-service restaurant, converted half of the restaurant’s service system into a machine, and the side dishes were completed by robotic arms (Exhibit 1). Moreover, Haidilao adjusted its operating model based on big data and continuously improved it (Exhibit 2) (Albrecht, 2018). However, Haidilao underestimated the potential disruptive threat of new hot-pot competitors, and innovation is now just copying other conglomerates innovations. Incentives:

The overall corporate culture of Haidilao is home culture. Every old employee is responsible for teaching apprentices. Whenever the apprentice’s position is promoted, the master will also have a similar commission.Bai, 2017) Internal culture:

Haidilao “family culture” has led to problems in its institutional management. Haidilao promotes the use of “trust” in place of management, the store manager has decided that all management decisions store. This results in Haidilao management system, the lack of supervision, and the headquarters of the senior management lack of participation in management. Vertical or flattish hierarchy:

Haidilao positions are divided into employee level and management. The employees are divided into new employees – second-level employees – first-level employees – model workers; management is divided into the lobby manager – store manager. The criteria for each level are only customer satisfaction and employee enthusiasm. 3.2 DICEE-Whole Product/Service

Deep- Haidilaos broad features were over repeat last five years and giving consumers boring images with the same services and especially the new generation consumers is not interested in those services but only gaming or video conferences.

Indulgent- The additional services refer from the customers as pushing and over warmly. For instance, when the customer waits in line, the server forces them to take their service featuring. However, during that time the customers only want to get a table early possible, and these optional services are not helpful.

Complete- HaiDiLao has the official website, and mobile apps include complaints, reservations, and delivery order. Since the company wants to expand their market into global, HaiDiLao is incomplete for not hire any outsourcing consultant company, and this effect to help expansion with cross-cultural locations which involve regulations and languages.

Elegant- HaiDiLao design of restaurants, menu, and symbol are not elegant as suppose to be. For example, HaiDiLao provides the traditional Chinese design of a restaurant that has some old fashion wood style and the symbol only has white and red. The restaurant lack of menu innovation and new design especially young generation giving highest revenue spent on any industry. For those design, make the customers think lack of interior and symbol design because young adult prefers modern design at this time.(Alexander 2016)

Emotive- HaiDiLao without deep, indulgent, complete, and elegant elements that cannot name their restaurants to have a great product or service.(Etiemble 2017) 3.3 Shifting basis of competition

5

MET AD 741 Team 3

Xiabu Xiabu is a one person, one pot fast food style hot pot. Xiabu Xiabu Provides

convenient hot pot sets with low prices (30RMB/person) to address customers pain of limited time and money. Besides, Xiabu Xiabu opened stores with high density, which cover office towers and shopping centers of many cities. Haidilao is a high-end hot pot restaurant (60-120 RMB/person) serving traditional Si Chuan hot pot. It aims to maximize the customers experience. Even though Haidilao has a worse location and higher prices than Xiabu Xiabu, customers prefer Haidilao due to its better services. In this part, the functionality of Haidilao wins the competition.

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