Background market and strategies of the nissin group business essay

Background market and strategies of the nissin group business essay Through the evaluation of the background, market situation and business strategies of Nissin Group, this paper provides the explanation on why Nissin instant noodles have achieved a fast development performance in the instant noodles business in Hong Kong The study of Five Forces and PESTEL analyses will lead to the understanding on how the macro-environment and micro-environment affect Nissin performance its business direction and strategy. A further study of the results from the perspective of an internal competence analysis to the results from the Five Forces and PESTEL will identify the strengths, weaknesses, opportunities and threats of Nissin. These findings will then tell Nissin of what needs to be minimized, eliminated, and to reduce or neutralize risks. All these findings will add up the reasons to justify how Nissin sustains its market leader position in Hong Kong. Suggestions on improvement and implementation of corporate strategy will also be elaborated. 1o. Introduction Intrepid Japanese entrepreneur named Momofoku Ando established Nissin Foods around the middle of the 20th century with the name Chukosasa Co., Ltd. Foreseeing that Japanese society was being economically and socially reengineered toward production speed and efficiency, he also sought to reengineer the Japanese diet in response. His answer to the requisite of speed exerted and demanded of the modern Japanese was simple – the instant noodle. The invention revolutionized the food industry not only in Japan but also throughout the world. Now Nissin Foods, produce not only instant ramen noodles but also fresh and pre-packaged frozen food, and meals-ready-to-eat including cereals and spaghetti. But noodles remained the primary product draw. Mr. Ando stayed ahead of the competitive pack with remarkable innovations. In 1963, he introduced into the market the ramen Yakisoba, which had a separate flavoring packet. A decade later, Momofoku Ando invented cup noodles and in 1984, Nissin Foods established in Hong Kong (Nissin Foods Holdings, 2010). What has been Nissin’s strategy to address the various forces acting upon the instant food industry? How valid and viable would this strategy still be in an age of high technology and rapid global integration? And now, lets start to know the direct key stakeholders in Hong Kong. Management of Nissin – The Management receives strong support from Parent company who has made the sustainability much easier for a stronger market share. Staff of Nissin – They are the executors of the business. Staff would be happy to work for Nissin if the business is stable and with continuous growth. Hong Kong consumers – the market share is large amongst the younger generations and white collars as they accept new trendy food, especially from Japan. Food and Environmental Hygiene Department (FEHD) of Hong Kong Government – the Government has to control the types of incoming food products for consumption, as a statutory body, FEHD will govern the quality of food items importing to Hong Kong. Hong Kong Consumer Council – it regulates the selling of consumer goods to the public in a fair trade practice. By supports of academic references, there will be a careful analysis of macro-environment and micro-environment undertaken by using Five Forces and PESTAL, plus a review of the internal analysis by strategic capabilities. The outcomes from external and internal environment analyses will be combined in a SWOT analysis. From the results of this analysis conclusion on overall business strategy, some improvement or implementation can be drawn through the methods of Porter’s Generic Strategies, Ansoff’s matrix and organic method.