While experiencing a product, the product itself and the service both determine the customer satisfaction. Haidilao hotpot, using its unique service, gradually obtains a competitive advantage among the hotpot industry in China. As Wendy Xu’s blog mentioned, Haidilao’s humanised customer service like providing manicure and snacks win excellent public praise. I’m curious with how this business operation affects the employees and how the company keeps its advantage in the fierce market.

 

I think the overall service in Haidilao is thoughtful. Waiters are glad and careful to notice every detail around and provide timely service. When customers meet the employees, they all greet customers friendly. In response, customer will treat them politely. When waiters are feeling respected, there’s no gap them and workers are willing to work. Referred to the job characteristic model, employees enjoy working with autonomy in a pleasant working area. If one is energetic and optimistic to work, his or her spirit will form task significance which impacts the other teammates to form positive energy. As a chain reaction, the working environment within Haidilao hotpot fits Theory Y. Employees are self-controlled and positive as a team to seek extra ways to service better.

 

But the unique service style is easily duplicated, how does Haidilao keep its competitive advantage within so many years？

 

Although Haidilao insists its service aim, there are other hotpot brands trying to duplicate its success. Haidilao hotpot explores extra ways to provide service better. Explained by the three-stage model of creativity in organizations, in this fiercely competitive market, Haidilao hotpot expands E-commerce on China’s take-away platform. Unlike the normal fast food, Haidilao hotpot not only provides the food and the pot, it even provides a waiter as an on-site service. Haidilao hotpot expands to a wider customer segments which becomes the leader of this market.

I appreciate the operation mode of Haidilao hotpot. The self-responsibility formed by employees enable them to take autonomy and affect each other as a chain reaction. Also, the innovation to expand into new market creates more potential chances to the company. The company as a whole holds its competitive advantage and leaves customer with a favorable impression.

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Reference:

  1. Karim, Sameer. “Using Extraordinary Service as a Competitive Advantage at Hai Di Lao.” Starting up in China. N.p., 04 Oct. 2012. Web. 29 Mar. 2017. http://startingupinchina.com/2012/10/using-extraordinary-service-as-a-competitive-advantage-at-hai-di-lao/

  2. Jin, Wang. “Taj Hotel vs HaiDiLao Hotpot: How to Drive a Culture?” OBlog. N.p., 22 Feb. 2014. Web. 29 Mar. 2017. https://blog.nus.edu.sg/audreyc/2014/02/22/taj-mumbai-vs-haidilao-how-to-drive-a-culture/

  3. https://blogs.ubc.ca/wenxu/2017/02/05/hai-di-lao-hotpot-service-beyond-expectation/