Name of Module: Principles of Economics (FNBE0315)
Report Title:A Tale of Two Businesses – A Comparative Analysis of 2 Businesses
of Similar Industry in Different Geographical Locations
Group Members: Haziq Zariful(0314131)
: Syafiq Zariful(0314702)
: Cassandra Wong (0313365)
Table of Content
Table of Content
Brief Bio of Businesses
Comparative Analysis of the Businesses’ Competitive Traits
We were given an assignment to compare the analysis of two businesses of
similar industry in different geographical locations. We chose to compare
businesses in Penang and in Klang Valley on seafood restaurants. The seafood
restaurant we chose in Penang is Bali Hai Seafood Restaurant which is located in
Gurney Drive and in Klang Valley we chose Bubba Gump Shrimp Co, which is
located in Sunway Pyramid. After completing and analysis the report, we found
out that Bali Hai would be the more commercially successful business compared
to Bubba Gump. Besides that, the similarity of the two businesses is that both
are having monopolistic competition.
Brief Bio of the Businesses
Bali Hai Seafood Restaurant
The seafood restaurant interviewed in Penang is the ‘Bali Hai Seafood
Restaurant’ strategically located in the famous tourist spot for local food in
all markets, the Gurney Drive. The interviewee is the Group Food &
Beverage Manager of the business, Steve Foong.
The first outlet opened for the business is at Gurney Drive, the second
outlet is at Penang Times Square, the third outlet is at Sungai Pinang and
it the biggest outlet so far, the fourth one, is located at Batu Feringghi.
The business currently has four outlets in Penang and is going to open the
fifth outlet at Damansara.
The product mainly sells fresh seafood in various kinds such as lobsters,
crabs, shrimps, geoducks, cooked in many types of ways such as
steamed, fried, boiled, etc. Popular dishes include: steamed grouper,
curry crabs with rice noodles.
The business‘s first outlet opened at Gurney Drive in 6th December 2005.
The business was founded by Mr. Josh Chua; and
It was founded because of his love towards food & desire to try on newer
types of cooking; he got the inspiration to start this business during his
younger years. He worked with his father when he was at a hawker stall
selling grill fish at Sungai Pinang, and then eventually passed the grill fish
business to his niece to open Bali Hai Seafood Restaurant. What inspired
him to call his shop ‘Bali Hai Seafood Restaurant’ was because Mr. Josh
loves Bali, and would love to bring a ‘Bali feel’ to their restaurant where
he uses the sunset view, seaside location, tablecloth and the dry leaf roof
imported all the way from Thailand with the decorations to make
customers feel as if they are in Bali.
In recent times, the business has used their revenue to add decorations to
add a relaxing family atmosphere & also a Bali feel such as the dry leaf
roofing. The revenue is also used to bring in more sea animals & products
to compete with other competitors. The revenue the business gains
through their development is currently RM1million per month, where they
start the business with a capital of RM600K.
The seafood restaurant interviewed in Klang Valley is the ‘Bubba Gump
Shrimp Co.’ strategically located in one of the shopping mall in KL,
Sunway Pyramid. The interviewee is the assistant Sous Chef, Mr. Pravin.
The first outlet opened in KL is at The Curve Mutiara, Damansara. The
second outlet in Kuala Lumpur is at Sunway Pyramid and the third outlet
is at. Citta Mall, Damansara
The business currently has thirty-two Bubba Gump restaurants operated
worldwide. Twenty-two of these locations are in the United States, three
are in Japan, two are located in Mexico, three are in Malaysia, and one
each in the Philippines, Indonesiaand Hong Kong.
The product mainly sells fresh seafood in various kinds such as shrimp,
salmon, fish, lobsters cooked in many types of ways such as steamed,
fried, boiled and more. Popular dishes includes their award winning Dixie
style baby back ribs, traditional shrimp cocktails, stuffed shrimps with crab
meats, shrimp kebab and more.
The businesses opened their first outlet in Malaysia at The Curve Mutiara,
Damansara in 2008.
The business was founded by Viacom Consumer Products
Was founded because was inspired by the 1994 film Forrest Gump. The
Bubba Gump restaurant is named after the film's characters Benjamin
Buford "Bubba" Blue and Forrest Gump.
Their recent development is that they are going to open their 100th outlet
in Malaysia soon.
Comparative Analysis of Competitive Traits
1) In Penang, in the Seafood Restaurant market, there are at least 49
competitors, specifically in Georgetown; there are approximately 19
competitors in the market.
There is an astoundingly large number of seafood restaurants in Klang Valley,
counting to more than 180 firms. Specifically in Petaling Jaya, there are at
least 50 firms.
2) In Penang, Bali Hai’s market share is small & its top competitors in the
market would be Tan Sam Guan Seafood Restaurant, Pinang Taste Seafood,
and Ocean Green Restaurant.
In Klang Valley, Bubba Gumps’ market share is the same as the other outlets
in Sunway Pyramid & its top competitors would be Manhattan Fish Market,
Pantai Seafood Restaurant & Restaurant Fatty Crab.
3) Bali Hai:
a) Tan Sam Guan is a seafood restaurant located in Batu Ferringhi founded
by locals Liang & Loon. The restaurant is famous for their friendly service,
atmosphere & their Malaysian Cuisine. They also serve food other than
seafood such as sizzling chicken & fried chicken with honey.
b) Pinang Taste Seafood is located at World Heritage Area Carnarvon Street,
Georgetown. Their motto "Local Taste with Home Sauce Recipe" signifies
that they cook their food such as Nyonya Asam Fish in a local Malaysian
way & that all their sauce are made from traditional home recipe. They
are also famous locally for cheap dishes at an average of RM3.
c) The Ocean Green Seafood is a popular dining place located off Jalan
Sultan Ahmad Shah in the city center. The restaurant also gives an open
view of a popular beach area for couples. The eatery offers famous
seafood freshly caught which are cooked in various ways such as the
Steam Curry Fish, Sweet and Sour Crab & Scallop Soup.
a) The Manhattan Fish Market would be the largest competitor; one of the
major reasons is that it is also strategically placed in Sunway Pyramid
Megamall like Bubba Gump. Another cause is how a globally successful
company owns the restaurant; hence, they would have a larger capital,
larger suppliers & different types of recipes such as Fiery Cherry Snapper
& Manhattan Flaming Prawns. Pricewise, customers would ideally dine in
this restaurant than Bubba Gump.
b) Pantai Seafood is situated around wooden houses & light industrials;
however, the interior has a spacious relaxing family atmosphere. There
are cascading tanks with a wide array of seafood to choose from for a
freshly cooked meal. Signature Dishes include Pak Cheok Har (Poached
Fresh Prawns) & Siong Tong LaLa (Steamed Clams in Superior Soup).
c) Restoran Fatty Crab had been well established and known to many
people. A Hot spot for Malaysians including Malays as it had been certified
as a Halal restaurant. The business can obviously be identified as a local
business since it resembles a typical local restaurant, with fans, outdoor
tables, local cuisine & stalls where they cook satay and Chicken wings.
Other Dishes include Sweet and Sour Sauce Crabs & Steamed Fish.
4) Bali Hai:
The management team would go around the area & eat food from other
restaurants not just in their market to spark ideas on ways to cook their
The manager also encourages employees to spend time with their
customers & receive negative/positive comments for the management to
The manager would also discuss with chefs & suppliers every 2 weeks to
create a new seafood dish. After discussing, the business would then
promote their new product to their customers.
Other strategies include the marketing department running programs to
promote the restaurant such as partnering with Tourism Malaysia, which
sponsors the business through brochures.
The restaurant has dancers perform Spanish dancing with the music in the
restaurant as a way to make the restaurant more unique.
As a restaurant self-labeled as a family restaurant, the management
allows kids under the age of 12 to eat their products for free. This would
attract more families, as they would not want to spend a lot.
New products are introduced annually in November/December.
In the marketing department, Bubba Gump promotes themselves by
selling merchandise near their shop, also promoting retro brands such as
Guinness & Tiger.
5) To enter the seafood restaurant market according to both managers is
currently easy as long as there is enough money to start the business, only a
small capital would be needed, eg. Bali Hai only needed RM600k from their
capital. One of the few obstacles faced in the market pointed out by Bali Hai
manager, Steve Foong, is that businesses need to partner with a supplier &
to compete with others; a supplier who can supply a large variety of seafood
would be needed, however, local fishermen can also provide their services to
local businesses, which would be cheaper. The chefs must also have the
knowledge to cook seafood & furthermore, to compete against competitors,
they need to be innovative on cooking new products to attract customers.
6) The seafood restaurant market for both Bali Hai and Bubba Gump has
Monopolistic Competition. In a market with Monopolistic Competition, there
are many firms, relatively easy to enter, somewhat different products, some
i) In Penang, there are approximately at least 49 firms while there are at
least 50 firms in Petaling Jaya, this proves there are many firms in the
geographical market & that it is easy to enter.
ii) The market also sells different types of dishes, in order to compete
against competitors, firms like Bali Hai think of a new product to sell in
a mere 2 weeks whereas the products of seafood restaurant also
varies by their supplier, Bali Hai has approximately more than 25
different types of seafood in different types of ways to cook them.
iii) There are also different price differences, local businesses might hire
local fishermen or fish for their supply, which, compared to large
businesses who hires suppliers providing various types of seafood,
would be much cheaper, hence, their price would also be cheaper.
iv) Lastly, large businesses such as Bubba Gump & Bali Hai would
advertise in order to attract more customers & not lose to their
7) Comparative Analysis Summary Table
Strong, has low capital,
Weak, has high capital,
needs to gradually upgrade
located at Sunway Pyramid,
firm through revenue
2. Barrier to Entry
1. Number of Competitors
Bali Hai Seafood Restaurant
where there are many people,
3. Differentiated or
Differentiated, eg. Alaskan
Standardized, very few
King Crab in Salted Egg Yolk,
Cheese and Crab Meat Whole
4. Pricing Power
Price Maker - sells various
Price Taker - few
types of seafood that are not
differentiated products, some
locally found, such as
can be cooked at home.
Australian Spider Crab &
No close product substitutes
substitutes found nearby,
constant advertising in &
around the area, mutual
5. Other Characteristics
Many Close product
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8) Based on our analysis, Bali Hai would be the more commercially successful
business. One of the reasons is that there are too many competitors in Klang
Valley than Penang & because of this, their advertisements are effective.
Another reason is that Bubba Gump doesn’t give too many unique recipes for
their products & takes a whole year on creating a new product while Bali Hai
only takes 2 weeks & have different types of seafood not just sticking to
prawns, shrimp & fish like Bubba Gump.
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- The products sold in the firm are too common & can even be cooked at home
or at least can be found in other restaurants in a cheaper price such as tempura
shrimp or fish and chips. There are very few differentiated products exclusively
for the restaurant and also, the dishes focus too much on shrimp & prawn there
are only 4 types of dishes for fish. Our recommendation is for the company to
issue new products monthly or every 2 weeks, instead of the current
- The price is a major reason why customers are driven away from the firm,
since there are many competitors who sell substitute products for a cheaper
price. For example, Bubba Gump’s Fish & chips are for RM25.90, whereas in
Manhattan Fish Market, their Fish & chips range from RM12.50 to RM19. Aside
from food, drinks are only too pricey ranging from RM12 to RM25. Our
recommendation is to sell products almost equal to competitors where demand
can be equal.
BALI HAI SEAFOOD RESTAURANT
-The restaurant is located just by the roadside, which makes it unhygienic due to
the carbon monoxide from vehicles which can affect the customers eating the
food. Besides that, the noise from the motorcycles that pass through can also
disturb the customers who are having family dinners. Our recommendation is
that they cover part of the restaurant up to maintain the cleanliness and the
ambience of the restaurant.
-The limited parking spaces are also one of the major reasons why customers
are driven away from the restaurant. There isn’t much parking lots based on
what we see when we are there. The reason is because it is by the roadside and
there is moving traffic which makes customers cannot park by the side. Our
recommendation is to provide parking spaces for the ‘Bali Hai Seafood
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Chicken, Meat, Fish & Pasta Menu
Promotion Menu – Front Page
Promotion Menu – Back Page
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Websites & Pages
Official Website – Sunway Outlet
Website – ‘About’ Page
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Official Facebook Page
Restaurant Information from Facebook Page
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