Shanghai Tang at present as of 2013 was facing some difficulties in its expansion that led to its closing around seven stores in that year (Want China Times, 2013). Difficulties in expansion of stores are numerous given the fact that small problems in current strategy might get exacerbated in the international realm (Luo and Tung, 2007; Luo, 2001). In this context analyzing the closure of some of its existing outlets when it is considering expansion leads one to the conclusion that the Shanghai Tang Strategy is not suitable to allow it for expansion into other countries. Shanghai Tang’s expansion plans follow a diversification regime. It ensures that its expansions are accompanied by product diversifications that blend in the culture of the country in which it expands into and also retains its ethnic identity. Diversification is possible because of product innovation. Product diversification is an important strategy for a company that is expanding internationally (Sambharya, 1995). However, in its diversification Shanghai Tai is seen to lack a needed heritage representation in its clothes and also its online presence was not up to par (Wei, 2014).
In this context, it is recommended that Shanghai Tang should increase its online presence and structure it so as to meet the competition set by similar retailers. It should also ensure that it includes more of its originality and heritage representation in its products.
Assessment 3- Scenario
In the analysis of entering a newer industry, it is essential that Greenway Environmental is aware of the exiting competition in the industry for the services that it is about to provide and also if it can manage to sell its services in such a competitive sector. The commercial restaurant waste collection industry can be assessed using Porters five forces model.
Rivalry among established firms:
Greenway Environmental must ensure to check the existing established firms that handle the waste collection for major restaurants. The rivalry between these firms will have to be analyzed as this will give Greenway a way to assess a market entry strategy. If the rivalry is focused on pricing then Greenway can adopt a similar competitive pricing scheme or could try for something different like service differentiations.