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Global Management -Red Ocean Strategy
The study analyzes operational efficiency in South Korean coffee franchises by identifying consumer preferences and important factors in their selection. Utilizing Data Envelopment Analysis (DEA) and Analytic Hierarchy Process (AHP), findings indicate Ediya Coffee excels in efficiency, while Cafe Bene is the least efficient, with customer priorities on operations and interior design. The research highlights that factors such as coffee price and side menu variety are less important to consumers.
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Global Management -Red Ocean Strategy
- 1. Galandar Mammadli Surviving inthe Red Ocean: measuring factors for business excellence among coffee franchises in Korea
- 2. The aim ofthe study This study analyses the efficiency in the operation of coffee franchises in Korea with the aim to find out what the consumers think is important in the selection of coffee franchises and what factors meet their demands.
- 3. Korea Coffee Market After2000s 139,764 tonnes 7 top franchising brands 5 times increase in the number of coffee stores 1.2 trillion KRW
- 4. Six Coffe Shops Starbucks National Popularity LargestSales volume Highest brand awareness Premium and customizable services Coffee Bean Follows the same strategy with Starbucks On the 4th rank Cafe Bene Celebrity marketing Largest franchised coffe brand Ediya Largest number of stores Reasonably priced food and beverages Tom N Toms Recently goes overseas Hollys Recently goes overseas
- 5. Research Data Collection •Annual Report •FinancialReport •Customer Survey Data envelopment Analysis •Cost of Sales •Total Asset •Sales Profit Analytic Hiearchy Process •3 preporties •18 Factors •Importance Measure Imortance Performance •2x2 Matrix •18 Factors •Performance Measure
- 6. Data Envelopment Analysis The methodallows us to measure not only the relative efficiency among DMUs, but also the degree of inefficiency among the input and output factors used in the analysis, and establish benchmarks. DEA commonly uses the Charnes–Cooper–Rhodes (CCR) model or the Banker– Charnes–Cooper (BCC) model by Banker et al. (1984) in calculating the efficiency and inefficiency of input and output factors. In this study, we adopt the input-oriented CCR model
- 7. Analytic Hierarchy Process The userto create a hierarchy for decision-making attributes to enable pair- wise comparison for evaluating the relative importance of each attribute. For this reason, AHP is often used for resolving complex decision-making problems. Furthermore, AHP looks at both the qualitative and quantitative aspects in the process of problem-solving, strengthening the logical consistency of the research.
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- 9. Importance–Performance Analysis This analysismeasures the importance and performance of service attributes and is known for its usefulness in providing insight for improving efficiency in operations with limited resources and capabilities. IPA evaluate the importance and performance (satisfaction) of service attributes at coffee shops and suggest areas needing improvement and focus.
- 10. Analysis- Dea • Datafor the input and output factors of the six franchises were extracted from the financial audit reports registered at the electric reporting system of Korea’s the years from 2010 to 2014, for each of the franchises. • Then, the data were analysed using the input-oriented CCR model. • The results of the analysis illustrate that Ediya Coffee has consistently ranked first in terms of efficiency for the past 5 years, while Cafe´ Bene has been the least efficient.
- 11. Analysis- AHP • Forthis study, fully trained PhD graduates with close knowledge of AHP and IPA wereappointed as researchers to conduct a survey on Korean coffee shop users’ perception of service attributes at coffee shops during a one-month period in March 2015 in Seoul, Korea, which resulted in 242 responses. • Among the upper level attributes, the most important upper level attribute was operations, followed by coffee, infrastructure, brand, and side menu, in the order of importance. In terms of relative importance, interior design ranked first, then, in the order of importance, price of coffee, staff service, membership benefits, brand image, coffee’s taste, and flavour.
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- 13. Conclusion Interior design received highest score Customerswant lower coffee price Taste, price and variety of side menus are not important Location is median lying
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