external & internal business environment of hkfm
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Ho Sze Kit52194008
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Products Hardwood and metal caskets
Urns in jade stone, marble
and brass Traditional Attire
Traditional Paper Art
Traditional Offerings
Flowers
Services Organization, management, and advisory on every aspect of the funeral ceremony Collection, preparation and transportation and burial/ cremation of the deceased Professional embalming, fumigation and cosmetology services
FacilitiesWorkshop for custom made-to-order casketsVisitation rooms and ceremony halls in various
sizes and styles, of which Grand Hall is one ofAsia's largestProfessional embalming roomRefrigeration and storage facilitiesHearses and companyvehicles
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What factors will you considerate if you want to open afuneral home in Hong Kong?
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Professional knowledgebasic knowledge about funeral, like procedure of funeral, funeralceremony of different religion
Government barriers LicenseFuneral Parlours Regulation,Cap. 132AD
- a Funeral Parlour Licence shall be obtained from the Director of Foodand Environmental Hygiene Department- application document and proposed layout plan need to obtain fullclearances from1) Buildings Department2) Home Affairs Department3) Lands Department
4) Planning Department Capital requirements Location and land Brand preferences
7 exciting funeral parlours with long history
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Families of deceased
Number of deaths
2008 2009 %change
41800 41200 -1.5 census & statistic department of Hong Kong
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Bargaining power of buyers
Concentration of buyerslow- Cant buy large volumes- Buyers are fragmented: no buyer has any particular
influence on product or price Choice
7 funeral parlours providing different quality of services
Information availabilitye.g. production costs of the product
Uniqueness of industry productse.g. difficult for customers produce the product themselves
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Wood and metal
jade stone, marble and brass
clothpapers
Materials
flowers
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Concentration of suppliers
low - Many competitive suppliers
- no dominant suppliers
cost of switching
low easy to switch from one supplier to another one
Choice
Concentrated purchasers
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Professional:funeral directorEmbalmer (maintain the condition of deceased)Cosmetic treatment for deceased
Labor
Bargaining power of labor suppliersSubstituteFew or even no substitutive suppliers are available
Concentrationonly few potential supplierstake inputs from a single supplier
Low proportionof professional infuneral home
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What can realistically be the substitutes of funeralservices?
A threat from substitutes exists if there are alternative products withlower prices of better performance parameters for the same purpose
In Porter's model, substitute products refer to products in otherindustries
To the economist, a threat of substitutes exists when a product'sdemand is affected by the price change of a substitute product
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industry growth slows
Fixed costs or barriers to leaving the industry are
high
players of about the same size
not much differentiation between players
products
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Funeral Home in Hong Kong:
Hong Kong Funeral Home
Kowloon Funeral ParlourSai Sing Funeral Parlourf
Universal Funeral Parlour
International Funeral Parlour
Diamond Hill Funeral ParlourPo Fook Memorial Hall
Owned by Siu Mings family
Owned by Tung Wah Groupof Hospitals (a charitableorganization )
Owned by past assistant of SiuMing
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Hong Kong IslandHong Kong Funeral Home
Kowloon
Kowloon Funeral ParlourSai Sing Funeral ParlourfUniversal Funeral ParlourInternational Funeral ParlourDiamond Hill Funeral Parlour
New TerritoriesPo Fook Memorial Hall
ConvenientMost notables and rich people livein Hong Kong Island
Higher standard
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First-mover advantagefirst funeral home in Hong Kong
Family-run businessKnowledge of running a funeral home pass by onegeneration to another
What internal factors that you think are important thatattributed to the success of HKFH?
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Lots of entrybarriers
Low bargaining power of buyers
Low bargaining powers of suppliers
No substitute of funeral services Low intensity of rivalry of the industry
Internal factors - first mover advantage
- family-run
uccess of
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http://www.quickmba.com/strategy/porter.shtml
http://www.themanager.org/Models/p5f.htm
http://en.wikipedia.org/
http://www.hongkongfuneralhome.com/tc/index.php
http://www.gov.hk/tc/residents/