External & Internal Business Environment of HKFM

8/8/2019 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/

Documents

External & Internal Business Environment of HKFM