AbstractsBusiness Management & Administration

Creating Core Competence and an Expansion Plan for a Chinese Wellness Company in Finland

by Lin Qi

Institution: Kymenlaakson ammattikorkeakoulu
Year: 2010
Record ID: 1142571
Full text PDF: http://publications.theseus.fi/handle/10024/13640


The main purpose of the thesis was to find the most important elements to build core competence and produce an expansion plan to start chain store operations for a Chinese wellness and physical therapy service company. The real name of the company was hidden in order to protect its privacy; instead, a name of Kiinalainen Hyvinvointiasema was used as a substitute. The services of Kiinalainen Hyvinvointiasema are very unique in the Finnish market. In order to succeed it is necessary for the company to build core competence, which was discussed from competitive advantage and strategy, localization of the services, and customer relationship management. The case company has an initial idea to expand through operating chain stores in Finland. The thesis evaluated this idea and provided a way of expanding. The empirical part consisted of an interview with the company manager, an analysis of 432 competitors in Helsinki, and a survey on 215 customers of the company. The interview was carried out to collect information on the company. The competitor analysis profiled an overall picture of competition of the wellness and physical therapy service industry in Helsinki, including the industrial structure, main line and service of the competitors, etc. The survey results showed good customer satisfaction and indicated what should be done to improve customer relationship. The three parts of the empirical research together helped create core competence for the company and approved the feasibility of the chain store operations. Kiinalainen Hyvinvointiasema has the potential to possess cost advantage, differentiation, and customer loyalty, and corresponding competitive strategies should be applied to maintain these advantages. The company should combine adaptation and standardization strategies to make the services more acceptable to Finnish customers. It is feasible for Kiinalainen Hyvinvointiasema to expand by operating chain stores through a combination of the corporate chain and the voluntary chain.