Woo Hong Kai's sister Business Hours: 10am - 3pm (Mon - Sun) Products: - Roasted Chicken Rice - Roasted Duck Rice - Steamed Chicken Rice - Braised Chicken Rice Pricing: - Chicken Rice: RM5 - RM6 - Duck Rice: RM8 - RM10 Number of Employees: 6 Business Started: 1992 Number of Branches: 2 (Penang) Average Daily Sales: 150 - 200 plates Competitors: - PengYang Chicken Rice (Jelutong) - Boo Kee Chicken Rice (Jelutong) - Kim Poh Roasted

1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL AND BUILT ENVIRONMENT
Principles of Economics (ECN30205)
Report Title: A Tale of Two Businesses – A Comparative Analysis of 2 Businesses
of Similar Industry in Different Geographical Locations.
Group members:
Boon Yi Chung (0318300)
Tan You Liang (0320215)
Chan Tian Ji (0320831)
Tan Yong Chien (0320200)
Deong Khai Keat (0320055)
Kiraly Renaud (0320322)
Sateshraj a/l p.devaraj (0321419)
Nur Iman (0321736)
Content Page
Cover Page
Table of Content
Key Summary
Brief Bio of the Business
Comparative Analysis of the Business
Competitive Traits
- Number of competitors
-Brief Biodata of top 3 competitors

2. -Strategies of Businesses
- Obstacles faced by new businesses
- Nature of Markets
-Justifications
-Comparative Analysis Summary Table
-Analysis
Recommendation
Appendices
References
Brief Bio of the Businesses
Leong Shifu BBQ Chicken Rice
This BBQ Chicken Rice business was interviewed at Bandar Sunway PJS 7/11. It is a
strategic location where it is located next to a Kuil, Petrol Station, Residences area as
well as Taylor’s University. His business stall is just right facing the coffee shop’s
entrance. The interviewee is the founder of this business, Mr. Yap Chee Leong. He
founded this business in the year of 2000. It has been 15 years he manage this
business. The name of his stall is basically based on his name, Yap Chee Leong. For
the past 5 years Mr. Yap had thought of opening a shop of his own chicken rice but
considering of his children are still too young, he chose not to take the risk at the
moment and currently he has his stall with 3 employees in the coffee shop with no
branches yet. Besides, his operating hours is from 10am to 3pm every day. He said that
he will open a shop for his own business in the future. Back in time, Mr. Yap used to be
a waiter to serve in the coffee shop for several years. What prompted him to start his
own business was his family, he wanted to provide his family with a financial freedom
environment thus he had the urge of starting his own business. It was a herculean task
for him to gain customers in the beginning of his business because for an oligopoly

3. business like his will face a lot of competitors in the market. At first, he only manage to
serve a few customers and only sells not more than 15 plates each day. Nevertheless,
he didn’t give up but to make more effort to carry on his business that’s why he made it
to his accomplishment today.(minimum of 10 chickens sold per day) Besides, he also
found that it is more interesting to manage a business instead of getting paid monthly.
The main product he sells are roasted pork and barbecued pork. The roasted pork is the
most demanding dish, of all the tables in the coffee shop, you will find majority of the
people are having roasted pork rice. Moreover, Mr. Yap will at least have 100-120
customers in a day. Especially during lunch time, the amount of customers will be twice
the amount as compared to other time, this is why he provides take away services for
the customers as well. His regular customers are mainly from Taylor’s University
students and PJS’s residences.
Hong Kee Roasted Chickenand Duck rice
Hong Zai RoastedChickenRice hasbeenoperatingsince the yearof 1992 until today.The name of
hisbusinessnamedasHongKee because of hisname Woo HongKhai.He isalso recognizedasthe
“Hong Zai” fromthe customerswhenhe startedhisbusiness.The founderwasMr. Woo HongKhai at
twentythree yearsago.Aswe interviewedwithhim, he toldusaboutthe urge of whyhe startedhis
business.Backintime whenhe firstgraduatedin1990, he didnot continue forfurtherstudiesdue tohis
familycouldn’taffordthe tuitionfeesforcollegesoruniversities.He hadnochoice but to geta job for
himself.He washiredasa kitchenassistantinachickenrice shop.Afteryearsof workingas he gained
more experiencesinchickenrice industry,itcomestoa huge turningpointinhislife,afriendof Hong
Zai offershimanopportunitytooperate astall that sellschickenrice inhiscoffee shop.Therefore,Hong
Zai beganhisbusinesswiththe supportfromhisfriend.SofarHong Zai has 2 branchesinPenangwhich
locatedinTaman IslandsGlades,Jelutong,Penang,awell-knownplace foritslocal food.He saidhe
couldn’texpandmore branchesatthe momentdue tothe limitedemployeeshe hascurrently,only6
employees,2businesspartner,one of themishisblood-relatedsister.Duringthe veryfirstfew yearsof
hisbusinesshe onlysellsnormal chickenrice,butastime goesbyhe receivednumerousof feedback
fromthe customerstosell varioustype of chickenrice asothersare doing.Today,notonlychicken rice
but he alsoprovidesroastedporkaswell asroastedduck.RoastedDuck has become the mainplate for
hisbusiness.Approximate of fiftypercentof hiscustomercame upjustto have a taste onhis signature

4. and delectableRoastedDuckrice.Moreover, residencesthatlive nearbyare hisregularcustomers
whose visithisstall uptofewtimesaweek.Inhisrecentbusinessresultamongthese few years,the
average portionthathe soldper dayis about150 ~ 200 platesor above.(eachbranch) Asthe clocks
strikestwelvesharpinthe noon,he beganhisbusiesttime forthe day.The customerwill all queue upto
make orders.We evenwaited3 hoursfor himjustto finishhisworktogetintoour interview session.
Comparative Analysis of Businesses Competitive
Traits
1) Number of competitors in their respective markets
- Leong Shifu BBQ Chicken Rice, located at Bandar Sunway PJS 7, Selangor. In
Subang, there are over 60 competitors within the area and about 14 competitors
within the market.
- Hong Kee Roasted Duck and Chicken Rice, located at Taman Islands Glades,
Jelutong, Pulau Penang. In Jelutong, there are about 40 competitors within the area
and about 8 competitors within the market.
2) The market share of the business and its top competitors
- In Subang, Leong Shifu’s market share is small considering of his child is still young
and its top competitors in the market would be Garlic Roasted Chicken Rice Shop
which is at Bandar Sunway PJS 11/7, and The Chicken Rice Shop as well as Ipoh
Nga Choy Chicken 1977 both located in Sunway Pyramid mall.
- In Jelutong, Hong Kee’s market share is small because he has only two branches
with his two partners to manage his business. There are a few of competitors when
he running this business and the top competitors would be the Peng Yang Chicken
Rice which is a well-known chicken rice shop in Penang Island which located at
Jalan Pancur, Jelutong. Another top competitor will be the Kim Poh Roasted Chicken
Rice and finally the nearest chicken rice shop from Hong Kee which located at Jalan
Slim, Jelutong.
3) Brief Biodata of Businesses Top 3 Competitors
Leong Shifu:
a) Garlic Roasted Chicken Rice Shop which located at Bandar Sunway PJS 11/7 is
famous for their unique style of roasted chicken. As we know from its name, the
chickens are marinated with garlic sauce before the roasting process comes in.
Moreover, it’s barely to get a plate of chicken rice at only RM4 within Subang area,

5. due to its affordable price and the unique taste of the chicken meat, those are what
attracts the crowd.
b) The Chicken Rice Shop in Sunway Pyramid is a well-known chain restaurant in
Malaysia. With the consideration for the Muslims, this restaurant provides a
completely halal menu for us. Although the restaurant is getting more
commercialised compared to the others, they still serve traditionally prepared
steamed, roasted, braised and honey barbecued chicken as its signature products.
c) Ipoh Nga Choy Chicken 1977 located in Sunway Pyramid is famous for their
signature bean sprout chicken. There is a choice of kampung chicken or ordinary
chicken cooked either by roasting or boiling. The boiled kampung chicken has a
smooth and soft texture, along with their special homemade sauce which makes it
their recommended dish at this place. Along with their friendly services and the
environment in the restaurant, it’s air-conditioned thus more comfortable to have your
meal in the restaurant.
Hong Kee:
a) PengYang ChickenRice locatedat JalanPancur,Jelutongisa famousfortheir
homemade chickenrice forthe pastfew years.AlmosteverycitizensinPenangwill
probablykneworheardof thisshopbefore.Theiruniquechickenrice andthe taste of
PengYang chickenrice attractednot onlylocal customers.Eventouristswere also
suggestedtovisitthisshop.Itwasfamouswithroastedchickenservedtogetherwith
the homemade sauce,ittasteda bitsaltyand withslightsweetnessinit.
b) Boo Kee Chicken Rice that originally located at Air Itam, Penang, soon shifted
to Jalan Perak, Jelutong which is just fifteen minutes of walking distance from
Hong Kee. As Boo Kee located in Jelutong, it becomes one of the top
competitors for Hong Kee. Boo Kee is famous for their steamed chicken rice and
braised chicken rice. These chicken rice are served with a small bowl of specially
mixed up minced onion and minced garlic in soy sauce. The sauce is the main
reason that made the chicken rice tasted so delicious even when steamed
chickens are tasteless.
c) Kim Poh Roasted Chicken which is at Taman Yew Lean, Jelutong is famous of
its roasted pork and friendly services. Their roasted pork tasted differently from
any other shops. Because he did not buy the prepared roasted pork to be served.
He roast the chickens and pork himself with his own signature method. The soup
they serve inclusive of spices that makes the soup tastes better and it works
perfectly with the roasted pork.
4) How do the businesses compete with their competitors

6. Leong Shifu
Mr Leong knew he was in for some tough competition when he opened his stall in the year of
2000. After 15 years of managing, today his business is still growing and developing. It became
a familiar chicken rice for the people within this area.
- First of all, Mr Leong found an area with few competitors that don’t serve food
similar to his. For instance, at the year of 2000, there was no other stall or
restaurants that sells chicken rice within this area. He then survived with other types
of restaurants without having to fight each other.
- Subsequently, his business delivers a service that nearby competitors can’t match, such as
higher quality and faster service as well as offering lower prices than his competitors without
compromising the quality of the food and service.
- Mr Leong himself also spend some time with his customer to receive positive and
negative feedback for himself to reflect on. So that he could
- Furthermore he also considers of more variety of food for the customers such as
roasted pork and barbeque pork instead of chicken only. Meanwhile he also spends
his weekend creating more interesting and delectable dishes such as his signature
dish (roasted pork rice) as well as his homemade recipe sauce for his business.
- Considering about the hygiene and freshness of the product, Mr Leong will not
serve customer overnight food. He would rather wake up earlier in the morning to
prepare and cook so that his product is guaranteed fresh and delectable for the
consumers.
- Lastly, price of his product is set at an affordable price and doesn’t raise
significantly over all these years to ensure the consumers eat happily.
5) What are the obstacles faced by new businesses who wish to enter their markets
today? Are they easy or difficult to overcome? Why?
To enter the chicken rice market is relatively easy as it does not require a very high capital to
start off the business. However Mr Leong pointed out several obstacles that new businesses will
encounter, for instance they will need to get a chef or to equip themselves with good cooking
skill. Besides, one of the biggest obstacles faced by new businesses is the low quantity of
demand. Another obstacle is because of the presence of other businesses providing the same
products, therefore customers will make comparison of the products. Moreover, getting raw
materials from a good supplier is also one of the main consideration. Not only about mastering

7. their cooking skills, they also have to be innovative to cook new products in order to attract more
customers.
6) What is the nature of their markets
Both of their markets are Oligopoly Competition. In a market of Oligopoly Competition, it is easy
to enter and this firm has many competitors, but each one sells slightly different product and
both have some price difference as well.
-Justifications
a) There are at least 60 competitors within Subang area. This proves that there are
many firms in this market thus easy to enter.
b) They have different prices in this market as well. Smaller business like Leong
Shifu, he employs lesser workers and supplier. Large business such as Hong Zai
hires more employees and has more supplier to provide various type of raw
material. This is why differences in price is formed, as compared Hong Zai would
be slightly more expensive.
Competitive Traits Hong Kee
(Penang Based)
Leong Shifu
(Klang-Valley Based)
Number of Competitors 20~40 40~60
Pricing Power Weak(Price Taker)
The price he set will not
affect the market price.
Weak(Price Taker)
If their price is higher
than market price they
will lose customers due
to numerous
competitors around.
Barrier to Entry Strong- Penang is well-
known for its famous
historical local food
therefore new stalls will
be slashed by the old
stalls.
Strong- they have had
their original customers.
Most customers will not
risk to try new stall.
Differentiated or Differentiated, eg. Standardized.

8. Standardized Product Roasted Duck that most
of the firms nearby don’t
provide.
Other Characteristics No close product
substitutes nearby,
inconstant advertising.
Mutual dependence,
due to they are
operating with other
stalls in the same
restaurant.
Inconstant advertising.
Verdict OLIGOPOLY
COMPETITION
OLIGOPOLY
COMPETITION
c) Lastly, the market also sells various types of dishes, in order to compete against
competitors, market like Hong Zai sells more than 2 variety that is chicken, pork
as well as duck.
7) Analysis
In a nutshell, we concluded that Hong Zai would be more commercially successful. This is
mainly because of its business’ annual revenue is higher as compared to Leong Shifu. Even
though they both sell the similar product, but Hong Zai offers more variety of menu as compared
to Leong. Due to its strategic location which located in the main town of Penang, they are more
likely to have more customers as compared to a lesser population area in PJS 7. Nevertheless,
both of them are quite famous in their own state. It wasn’t easy for us to make decisions but we
still have to make a choice eventually, we chose Hong Zai.
Recommendation
Leong Shifu BBQ Chicken rice
- Firstly seeing as the business has a considerable amount of customers in the
nearby region it would be most beneficial towards the business to advertise his
products and services to a larger crowd in further more distant areas. This can be
done in an old school way by manufacturing posters and flyers or online using social
media such as Facebook and twitter to promote the business exponentially.
- Another area of improvement can be the price. At first glance there would be
nothing wrong with affordable prices thus creating higher demand for his business
but seeing as there are 14 other chicken rice shops within close proximity and he
prides himself on selling freshly made products which must cost quite a bit of money
buying fresh produce everyday. Therefore we recommend that he increase his price
on par or if not a little higher than other competitors which will create more
competition over the long run and he can make more profit.

9. Hong Kee
-The chicken rice shop situated in Penang is one that is shared with a coffee shop
and with the sheer number of customers it receives especially during peak hours we
suggest that the owner hires more members of staff because it is a difficult task to
sort out over one hundred customers at a time. With more workers, orders can be
taken quickly and their food prepared to reduce congestion in queues.
-Another point is to go on is to provide more options to his customers. By this we mean
introducing set meals or new recipes and also incentives such as discounts at peak
hours to increase his current customer base and also adjust his menu to appeal to a
wider demographic such as adding vegetarian products.
Appendices
Interview notes

10. Group photo with Hong Kee Roasted Duck and Chicken Rice

11. Business Details
Business Owner: Woo Hong Kai
Location: Lot 6, Taman Islands Glades, 41700, Jelutong, Penang
Contact Number: +60164062380

12. Group photos with Leong shifu BBQ Chicken Rice

15. Business Details
Owner’s Name: Yap Chee Leong
Location: PJS 7/13, Bandar Sunway, Petaling Jaya

16. Interview note

18. Photo’s of Hong Kee Roasted Chicken and Duck Rice

19. Detail of Business
Business Owner: Woo Hong Kai
Location : Lot 6,Taman Islands Glades,Jelutong,41700,Penang
Contact Number: +60164062380
Photo’s of Leong sifu BBQ Chicken Rice

23. Detail Of Business
Owner’s Name: Yap Chee Leong
Location : PJS 7/13,Bandar Sunway,Petaling Jaya

24. Competitor of Leong Sifu BBQ Chicken Rice
Chang Cheng Hong Kong Chicken Rice(Mentari Branch)

25. Detail of Competitor for Leong Sifu BBQ Chicken Rice
Owner’s Name:Mr Tan
Location :Jalan PJS 8/1,Sunway Mentari
Contact Detail :0166168300

26. Competitor 2:Wong Seng Chicken Rice

28. Business Detail :
Owner’s Name: Mr Low
Location :PJS7/22,Bandar Sunway