Data collection

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Analysis of the Innovative Models Adopted by the Tourism
and Hospitality Industries
觀光餐旅企業創新模式分析
ABSTRACT
With rapid changes in the economic environment in the 21st century, the tourism
and hospitality industries have grown rapidly within the economic systems, and its
importance in some advanced countries has replaced that of industry. In the age of
global competition, service innovation has gradually become a dominant subject of
study in the service industry. As industrial structure changes, labor-intensive
international tourist hotels, as a part of the service industry, relies on the macro
environment for survival, and is also deeply affected by service innovation.Based on the
theoretical framework of innovation in the tourism and hospitality industries, this study
referred to the four aspects of innovation proposed by Rob Bilderbeek and Pim Den
Hertog (1998), namely (1) new service concept, (2) new client interface, (3) new service
delivery system, and (4) technological options. This study also treated the five top
tourism and hospitality companies in Taiwan between 2005 and 2009 as case study
companies, and analyzed their operational data on the innovation of corporate
management.
Keywords: Service Innovation, Tourism and Hospitality Industries
摘要
隨著 21 世紀經濟環境的急劇轉變,觀光餐飲業在經濟體系內不僅成長快
速,在幾個先進國家中的重要性與角色更是取代了工業。在全球化競爭的時代,
服務創新(Service Innovation)逐漸成為服務業的一門新顯學。隨著產業結構的快速
變遷,勞力密集的國際觀光餐飲業屬服務業的一環,營運成敗除了受外在環境的
景氣影響外,著實受其服務創新之影響甚鉅。本研究針對觀光餐飲業的創新理論
架構,主要以 Rob Bilderbeek 與 Pim Den Hertog 等學者於 1998 年 8 月發表之論文
中指出創新架構的四個構面:(一)新的服務概念(New Service Concept)、(二)新的
客戶介面(New Client Interface)、(三)新的服務傳遞系統(New Service Delivery
System)、及(四)技術選項(Technological Options)為主軸,並以 2009 年台灣觀光餐
飲業前五大企業為案例公司,針對公司的經營資料,調查分析業者經營的創新或
獨特事項,供國內相關產業參考。
關鍵詞:服務創新,觀光餐旅
I. INTRODUCTION
As the income level increases and the information technology advances in Taiwan,
the public consumption demands have become more diverse and changeable, especially
on service demands. As to industrial development, professional work division results in
higher economic benefits; thus, the demand for innovative service also becomes
significant.
According to the statistics of the Council for Economic Planning and Development
(CEPD), in 2002-2005, values of output in tourism service industry of Taiwan were
only 2.1-2.6% in GDP and the percentages were lower than the global figure. In recent
years, the Ministry of Transportation and Communications has actively combines local
features to increase the economic value of the tourism industry. The CEPD
optimistically estimated that by 2009, tourism service industry in Taiwan would reach
5.2 million person-times of foreign visitors, 120 million person-times of domestic
travelers, and $448.3 billion NTD as output of value. Taiwan would become a popular
tourist destination in Asia.
As market competition intensifies, besides R&D of technical products, the
innovation ability is also crucial to businesses. The earliest study on business innovation
was proposed by J. Schumpeter, the German economist, who defined innovation in
1912, and suggested the classification of innovation in 1934. The five criteria of
innovation are: (1) new products; (2) new production process; (3) expansion of new
market; (4) new sources of supply for materials and semi-finished products; (5) to
construct or avoid monopoly. His definition has been valued by the academia and
business circles, and wide applied to enhance corporate competitiveness.
Regarding the innovation theories for the service industry, “Services in Innovation:
Knowledge Intensive Business Services (KIBS) as co-producers of Innovation”
published by Rob Bilderbeek and Pim Den Hertog in August 1998 is the most
representative one. The framework of innovation includes four dimensions: (1) new
service concept; (2) new client interface; (3) new service delivery system and (4)
technological options. Relation model and conceptual descriptions of four dimensions
are shown in Figure 1 and Table 1:
II. Literature Review
A. Definition of innovation
Schumpeter (1934) initially proposed the idea of innovation, and suggested that
innovation is the core of economic growth. According to Drucker, innovation is the
special function of entrepreneurship. Innovation and entrepreneurship are practice and
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training. In other words, innovation must be applied to enterprise activities (Hsiao & Li,
1991). Upon the above study, Higgins & James (1995) indicated that innovation is the
most significant corporate asset in the 21st century. It means that the process of
invention would result in considerable value for individual, groups, organizations,
industries or societies. Clark & Guy (1998) suggested that innovation is the process to
transform knowledge into practical products. They emphasized the interaction between
people, things and related organizations and information feedback in the process.
Moreover, innovation is the main source of knowledge creation and diffusion of
technology knowledge. Afuah (2003) indicated that innovation is to use new knowledge
and provide customers with new services and products needed, including invention and
commercialization.
B. Types of innovation
The above definition and content of innovation demonstrate that the dimensions of
innovation are very broad, and can be examined from different perspective. Thus,
scholars classify the innovation and the criteria of the classification are different. Some
is based on subjects of innovation, such as technical, managerial, product and
manufacturing innovation; some is based on innovation levels, such as jumping and
sequential innovation; some describes innovation by different stages of innovation.
Given the diversity of innovation, scholars also divide innovation into several types.
Schumpeter (1943) initially proposed five types of innovation, including new products,
new methods of production, new sources of supply, the exploitation of new markets and
new ways to organize business. Daft (1978) divided innovation into “technical
innovation” and “administrative innovation” which became the significant criteria for
future scholars’ innovation classification.
C. Characteristics of creativity
According to the above views on creativity, most scholars suggest that creativity
should be explained by multiple instead of one dimension. Thus, in recent years, the
studies on creativity gradually adopt confluence approach (Sternberg & Lubart, 1995 &
1999), and treat creativity as a combination. In order to completely probe into creativity,
it is necessary to integrate views of different schools and consider multiple dimensions
as well as environmental and cultural factors. According to the confluence approach, the
main factors of creativity include “intelligence”, “knowledge”, “thinking approach”,
“personality traits”, “motive” and “environment”, as described below:
Sternberg (1988) emphasized that creative thoughts are based on knowledge. When a
person is ignorant about something, he would not produce any new related ideas. A
person needs knowledge as a basis for further development in order to know how to
apply and expand the innovation. Sternberg & Lubart (1995) further suggested how
knowledge enhanced creativity: 1) knowledge allows people to reduce the possible
ignorant risk when creating new works in certain field; 2) knowledge encourages those
with creativity to be innovative; 3) knowledge enhances the production of high-quality
products, and quality is also one of the indices of creativity; 4) knowledge allows people
to focus on new things instead of wasting time on basic things. Based on the above,
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creativity must be based on knowledge of specific fields in order to be the most
effective.
III. Research Method
Data collection
A. Literature Review
This study generalized innovative models according to foreign and domestic
scholars’ and experts’ statements on service innovation, particularly service innovation
framework proposed by Bilderbeek et al. in 1998 (SI4S Synthesis Paper, 1998,
“Services in Innovation: Knowledge Intensive Business Services(KIBS) as Coproducers of innovation”, Rob Bilderbeek, Pim den Hertog, Göran Marklund, Ian
Miles). The innovation contents of the case companies were applied to the framework of
four kinds of innovation as criteria for future studies.
B. Information of operational environments of case companies
This study probed into current operation and innovative characteristics of top five
enterprises of hospitality service industry in 2005~2009 announced by the
CommonWealth magazine, and collects data by the following methods:
(1) Corporate websites: search for information on the corporate websites; collect and
study related information.
(2) Papers: collect the related articles from professional journals, reports, or master’s
theses and dissertations.
(3) Books: collect publications related to service innovation or on operational
characteristics of the case companies.
(4) News and reports in newspapers, magazines or on websites.
C. Selection of case companies
This study selected top five companies in the hospitality service industry from
2005 to 2009, and reorganized the representative innovation approaches. Top five
companies are 85 Cafe, Wang Steak, Grand Formosa Regent, Sushi Express and
President Starbucks.
(1) 85 Cafe: Comestibles Master Group is the most well-known headquarters of chain
stores in Taiwan. In 2009, the business volume reached $6.283 billion NTD. Its
subsidiary company, 85 Café, has successfully established 91 chain stores from
July 2004 to December 2005, and all chain stores gained profits. In 2005, it was
voted by YAHOO as the first among the top ten headquarters of coffee chain stores,
and successfully defeated Starbucks. In 2005, it received the Golden Jubilee Award
as the number one consumers’ brand, the Golden Diamond for high-quality product,
and the Golden Prize for the Top Ten High-quality Products in Taiwan. In 2006, its
target was to sell 45 million cups of coffee, and enter the Chinese and overseas
markets as a world-class brand.
(2) Wang Steak: Wang Steak is well-known in Taiwan, as well as Tasty (steakhouse),
Taoban (Japanese cuisine), Giguo (hotpot), Yuan Shao (BBQ) and new “ikki” (fine
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Japanese cuisine). Wang Group has six brands in the food and beverage industry in
Taiwan with 43 stores, including Wang Steak (11), Tasty (13), Taoban (11), Giguo
(5), Yuan Shao (2) and ikki (1). In addition, it has developed 2 brands in China
with 8 stores, including Wang Steak (6) and Tasty (2). In the US, it owns
Porterhouse. Besides engaging in the food and beverage industry, Wang Group also
own A+Math Center and Guinness World Record Witness Center.
(3) Grand Formosa Regent: Grand Formosa Regent is devoted to enhancing the
competitiveness of its hotels, and becoming the leader in the market. It has
introduced TCE-Total Customer Experience to enhance service quality and satisfy
customers’ expectation from customers’ perspectives. Besides upgrading the
facilities and service quality from the TCE perspective, it has also integrated the
departments of finance, procurement and HR. Since the opening of Grand Formosa
Regent Tianhsiang (Hualien) in 1997, Grand Formosa Regent has become a wellknown hotel group in Taiwan. It form alliances with Four Seasons and The Regent
Group in 1992, it has become a member of the large-scale chain hotel groups in the
world, further enhancing its reputation and capacity.
(4) Sushi Express: Sushi Express Group was formerly a subsidiary of Jing Chiu Co.,
Ltd., which specialized in garment export, founded in 1978. In order to expand
diverse operations, the found of the company, Mr. Jing-chiu Chen, invested in the
service industry in 1996, and founded the first take-out Sushi shop. In the same
year, Sushi Express was established, and the business was expanded to wholesale
and other food brands. It is the most successful example of transformation. Sushi
Express Group focuses on Japanese food and wholesale of food supplies. Its sales
channels include retailers and online shops. By 2005, there were 100 directoperated chains of Sushi Express around Taiwan. In 2006, the business was
expanded to China, including Shanghai, Suzhou and Beijing. In 2007, the food
brands, including Teishoku 8, Japanese hot pot and hot pot express, were
established. In 2009, the business in China was expanded to Hong Kong. Currently,
there are totally 254 direct-operated stores in Asia.
(5) President Starbucks: President Starbucks Coffee Corp. was formally founded on
January 1, 1998. It was the joint venture of Starbucks Coffee International in U.S.
and President Corp. and President Chain Store Corp. under Uni-President Group.
Starbucks Coffee Company of President Starbucks Coffee Corp. selected and baked
high-quality coffee beans, and trained excellent local talents to provide high-quality
coffee and service for consumers in Taiwan. With unique spatial design, consumers
recognize Starbucks as a “third place” to enjoy coffee, outside of home and office.
IV. Case Study
A. History
History of case enterprises is briefly described below:
(1) 85 Cafe founded its baking department in January 2003. The brand was formally
named 85 Café in July 2004. The first 85 Café in Australia was opened in
September 2006; the first 85 Café in Shanghai was opened in December 2007, the
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first 85 Café in the U.S. was opened in Irvine, California, in September 2008. By
December 2008, there were 324 stores in Taiwan. By September 2009, there were
74 stores in China and 400 stores worldwide.
(2) Wang Steak was opened in November 1992. By December 2004, there were six
food brands (Wang Steak, Tasty, Taoban, Giguo, Yuan Shao, ikki) under Wang
Group, including 43 stores. In addition, two brands were developed in China, with
8 stores: Wang Steak (6) and Tasty (2). In U.S., there was one brand (Porterhouse).
(3) Grand Formosa Regent Taipei defines its position in the market as the most
excellent and popular five-star international hotel in Taipei. The target consumers
are international business travelers and local customers. The decoration is simple
and elegant, and the service is delicate and sophisticated. It expects to provide highquality accommodation and food, and become the model of modern life in Taipei.
(4) Sushi Express Group was formally under Jing Chiu Co., Ltd., founded in 1978.
The founder Mr. Jing-chiu Chen began with garment export business. In order to
achieve business diversity, Mr. Jing-chiu invested in the service industry in 1996,
and founded the first take-out Sushi store. In the same year, Sushi Express was
established, and he also extended the business to wholesale of food supplies and
other food brands. It is the most successful example of transformation.
(5) President Starbucks Coffee Corp. was founded on January 1, 1998. Its products
play a leading role in food industry of Taiwan, China, Asia and the world. President
Corp. is also one of the largest corporate groups in Taiwan. The related industries
include feed, oil, food, drink, logistics, channel, finance, insurance, and recreation.
B. Profits
The case companies are included in the top 500 enterprises of the service industry
by the CommonWealth magazine. They are also have stable operation and rich profits.
The profits are shown in Table 2.
C. Brand building
(1) The mission of the Comestibles Master Group is to provide five-star products and
fair prices to the public. With bright decoration and simple brand image, the stores
allow consumers to enjoy the aesthetics and temptation of desserts in an open space.
Its aim is to establish creative food stores that could trigger customers’ vision, taste
and smell.
(2) By strategy of horizontal development, Wang Group has created nine brands of
food service over the past 16 years. The differences of the brands are their market
positions and consumers. The management believes that small and medium
enterprises are not suitable for diverse operations. It is because given a small scale,
the resources are limited; moreover, under competitive markets and reduced
internal demands over the recent years, business diversity would not be able to
grasp special niches, hence, the business would soon be eliminated by the market.
(3) By operational strategy upon profit and innovation, Steven Pan regained the stock
ownership of Grand Formosa Regent Taipei and Tianhsiang by stock swap in 2000,
and thus, Grand Formosa Regent entered into a brand new stage. As the president,
Steven Pan reconstructed Grand Formosa Regent based on his 9 years of
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managerial experience, as well as creativity in design and marketing. He enriched
the content of the brand by culture, history and creativity.
(4) Sushi Express Group focuses on Japanese food. The wholesale business targets
retail channels and online shopping. By fair-price brands, such as Japanese sushi,
hot pot, and hot pot express, the business was expanded to Hong Kong in China in
2009. There are currently 254 direct-sale stores in Asia.
(5) The coffee business of President Starbucks emphasizes on humanistic
characteristics and quality, focuses on its customers and employees, purchases the
best coffee beans in the world, and provides consumers with the best coffee
products and the most comfortable place. It has become a leading coffee brand in
the world and is valued by international scholars who call it the “legend of the
coffee kingdom”.
D. Innovative structure of the Bilderbeek model
Innovation frameworks of Bilderbeek, individual innovation frameworks and content
of case companies are shown in Figures 2~6.
E. Operational concepts and strategies
(1) Operational concepts and strategies of 85 Cafe
1. Quality: enhance the overall product quality and produce high-quality products
by high-quality equipments; strict management guarantees high quality.
2. Professional: product R&D to enhance high-quality competitiveness, emphasize
professional talent training and enhance original advantages by products.
3. Innovation: respond to market environment, constant R&D by innovative
thoughts to enhance international competitiveness.
4. Responsibility: always be responsible for the chain stores and consumers;
constant guidance and support for the chain stores; maximum customer
satisfaction to fulfill maximum corporate responsibility.
5. Diligence and Reliability: 85 Café is based on diligence and reliable attitude.
6. Customer satisfaction: continuously improving service attitude, beyond customer
satisfaction.
7. Innovation and energy: pursue innovation and be energetic at work.
8. Lifelong learning: Everyone in 85 Cafe keeps learning modestly.
(2) Operational concepts and strategies of Wang Steak
1. Honesty: honesty is the priority when treating people and things; be honest to the
company, co-workers, suppliers, customers, government and families. Honest
attitude is also reliable.
2. Team work: belief in positive chain reaction 1+1+1=9; with encouragement,
everyone’s potential will be inspired.
3. Innovation: be creative, mature and modern, dare to challenge the tradition, not to
be close-minded, and analyze everything by figures.
4. Satisfaction: satisfy the customers, company and people; satisfy oneself and it is
not self-conceited but being modest.
(3) Operational concepts and strategies of Grand Formosa Regent
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Regent International Hotels Group constructs the word of mouth by unique
customer service, careful attention, and persistent quality commitment. It also results in
special Regent culture (“Regent experience”). It combines local customs and luxury and
world-class hotels, and creates sincerity and personalized service. Each hotel of Regent
International Hotels is considered a local business, and is modeled by its surrounding
environment. It significantly reflects rich local cultural customs which sometimes can
be mysterious. The customers in the hotels are in the unique atmosphere, and feel being
well served.
(4) Operational concepts and strategies of Sushi Express Group
The materials of Sushi Express are directly delivered from the origins of
production. 65% is imported from foreign countries and 35% in purchased in Taiwan.
For instance, fresh salmons delivered from Norway six times a week, low temperature
tunas from Kaohsiung Harbor and Donggang, as well as high-quality rice are strictly
screened by central kitchen of Sushi Express. Logistics vehicles deliver the materials to
direct-sale stores around Taiwan at 4℃ every day. The stores persist in 100% fresh
materials and do not sell them on the next day. Health inspection is conducted every
week. The requirement of details is to give the best to customers.
(5) Operational concepts and strategies of President Starbucks
In order to effectively reduce the impact on environment, Starbucks makes efforts
on three points of environmental protection.
1. Source of coffee, tea and paper use
2. Product and personnel transportation
3. Shop design and operational approach (electricity and water resource, waste
recycling and processing)
V. Conclusions and Suggestions
A. Conclusions
The innovation approach of the hospitality business is based on framework of
Bilderbeek model, including New Service Concept, New Client Interface, New Service
Delivery System, and Technological Options. Moreover, the management guru Peter
Drucker suggested that “innovation” means customer value and satisfaction by changing
the resources. In lecture the “Blue Ocean Strategy of Service Industry Innovation”,
Professor Shih-chun Hsu indicated four types of service industry innovation: (1)
increase service content or options; (2) delicate content of original service content; (3)
general effect of different service content; (4) independently operate certain service
from the original organization; create new value by service innovation; construct unique
image so that it is difficult for rivals to imitate or follow. It is called “Blue Sea strategy”,
as shown in Table 3.
By literature review, this study generalizes eight kinds of hospitality industry
innovation: (1) operation and management innovation (e.g., IT, computers, information
processing and internet); (2) marketing innovation (e.g., market segmentation and
positioning of prices); (3) new products or new brand development innovation; (4)
service content innovation (e.g., delicacy diversity and customization); (5) market
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segmentation and positioning innovation; (6) general effects of resource integration or
multiple service content. The operation is shown in Table 4.
B. Suggestions
Corporate innovative strategy aims to maintain the leading position in the industry;
thus, it is insufficient to only rely on downsizing, cost reduction and process
reconstruction. Companies must use resource scale, develop the employees’ potential
and construct core profession in order gain competitiveness in the market. This study
suggests that corporate innovative strategy should be based on network of primarysecondary framework, and treats the business group as an alliance of small enterprises
and network of internal entrepreneurs. Upon common vision and overall operational
strategy, the companies can construct powerful profit communities, develop core
profession needed in group network, encourage innovation and entrepreneurship by
employees, and achieve innovation through teamwork, in order to ensure sustainable
development of the business groups.
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Sternberg, MA. (Eds.), Handbook of Creativity. NY: Cambridge University Press.
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Innovation: Knowledge Intensive Business Services (KIBS) as Co-producers of
Innovation”, Report of SI4S project, Step Group.
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On-line Available:http://www.thinksmart.com 2010/09/06
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http://cm.nsysu.edu.tw/~cyliu/ 2010/09/01
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9
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2010/09/05
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20. The website of President Starbucks Coffee Corp:
http://www.starbucks.com.tw/home/index.jspx 2010/09/05
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Table 1. Descriptions of four dimensions of innovative service
Dimensions of service
innovation
New Service Concept
New Client Interface
New Service Delivery
System
Technological Options
Descriptions
Innovation in manufacturing industry, such as
introduction of new products or new production
approach, is extremely specific. However, service
innovation sometimes is obvious (e.g., logistics delivery
and ATM), but it mostly is abstract. It is a kind of
feeling of special agreement (e.g., ideas, concepts and
problem-solving approaches).
Service content of corporate service innovation is
presented by marketing (e.g., selection of customer
service, customized service, after-sale service support
and home delivery) according to characteristics of
original or potential customers’ demands.
Employees’ potential is energized by organizational
arrangement and training. Thus, the employees will be
more capable of developing and providing innovative
service in order to executive and deliver more precise
service.
Technology is not the necessary option of service
innovation. For instance, supermarkets and cafeterias do
not require high technology and they only need carts,
warehousing system or cooking tools, careful selection
of materials, etc.
Table 2. Business volume of case enterprises in recent five years (unit: hundred million
NTD)
Years
2005
2006
2007
2008
2009
Company
85 Cafe
22.78
23.60
27.79
34.7
62.83
Wang Steak
26.86
34.70
43.15
46.57
52.85
Grand Formosa Regent
29.32
28.67
41.87
42.45
42.99
Sushi Express
21.68
21.61
27.68
35.94
37.48
President Starbucks
26.37
28.48
31.59
35.11
35.60
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Table 3. Case hospitality firms upon four dimensions of Bilderbeek innovation (1)
Dimensions
New Service Concept
New Client Interface
Firms
1. It offers five-star
1. Target customers: 18-24
products and fair prices.
years old students, young
2. Brand positioning: fivegeneration and most of
star coffee, cake and baking them are females
store
2. There are about 121
3. Small stores that
chains in Taiwan (still
specialize in tea and cakes: increasing); they are mostly
85 Cafe
sell featured snacks and
in northern and central
drinks such as coffee, tea
Taiwan. There are 68 stores
and cake and provide
in northern Taiwan, 43
delivery service.
stores in central Taiwan, 9
stores in southern Taiwan
and one store in eastern
Taiwan.
1. Immediate reward and
1. Customers are
share
benefactors and co-workers
2. Unrelated to politics and are family members.
Wang Steak
government, stocks, out-of- 2. Dolphin reward system
business investment and
3. Learn more, do more and
loans
play more
1. Private butler service
1. Introduce TCE-Total
hotel: Tai Pan Residence
Customer Experience to
& Club
enhance service quality;
2. Philosophy of Grand
satisfy customers’
Formosa Regent: pursuit of expectation from
prominence
customers’ perspective
3. Operational strategy
2. Traveling plan of “homeupon profits and innovation to-hotel” of the club.
Grand Formosa Regent
4. Because of cooperation
with
Carlson, headquarters of
Grand Formosa Regent is
located in Minneapolis,
Minnesota, as Carlson
group. The business offices
are in L.A., New York,
London and Tokyo.
1. The highest quality and
1. Actively create a dining
the fairest prices are the
environment with
Sushi Express
most key brand meanings
international
of Sushi Express Group.
competitiveness, and serve
2. Sushi Express Group
each customer by concepts
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focuses on Japanese food,
and wholesale business
targets on retailer channels
and online shopping.
Emphasize human
characteristics and quality;
respect customers and
employees
President Starbucks
of “health, nutrition and
delicious”.
2. 10% serve charge in
Sushi Express is cancelled
1. Promote the “Aid Plan
for Bunun Children” to care
for aboriginal children’s
education.
2.Hold the “Blue Note
Blend” in stores to promote
local artistic activities
3. “Weave the rainbow for
Atayal children by a cup of
coffee” was held in stores
around Taiwan
Table 3. Case hospitality firms upon four dimensions of Bilderbeek innovation (2)
Dimensions
New Service Delivery
Technological Options
Firms
System
1. 85C is the visual focus; it Exclusive food taking and
is an easy-to-remember
order window and process;
brand
open working space
2. Public relation of
85 Cafe
advertising image; media
publicity
3. Four stages of marketing
(AIDA) are
successful!
Wang Steak
1. Plan of lion dance group Computerization process
1. In August 1992, Four
e-reservation device to
Seasons Hotel and Regent
deliver data by WWW;
Hotel formed an alliance.
travel agencies can reserve
2. In November 1997,
hotels of Grand Formosa
Grand Formosa Regent
Carlson group, as one of
Regent only by keying in
the leaders in the global
the code "RE"
chain tourism industry,
acquired Grand Formosa
Regent from Four Seasons.
1. In 2009, business in
Logistics and online
China was expanded to
shopping
Hong Kong; there are 254
Sushi Express
direct-sale stores in Asia.
2. production: 65% is
imported from foreign
nations and 35% is
13
purchased in Taiwan
1. In 2002, President
Starbucks Coffee Corp. had
100 stores in Taiwan.
2. President Starbucks
establishes “Star Club” for
public welfare
President Starbucks
Computer information
system
Table 4. Service innovation models of cases in hospitality industry
Names of
Grand
firms
Wang
Sushi
President
85 Cafe
Formosa
Innovative
Steak
Express
Starbucks
Regent
approaches
Operation
and


management
Marketing





Brand





development
Service content


Market




segmentation
Resource


integration
Marketing
New Service Concept
The first dimension
characteristic knowledge
(corporate intelligence)
New Client Interface
The second dimension
customers attributes
(market information)
Technological
Options
The fourth
dimension
ve
De
Dis
trib
utio
n
.
Org
me
lop
nt
New Service
Delivery System
The third
dimension skill
and attitude
(human resource
management)
Fig. 1 Four-dimension model of innovative service
14
Marketing
Target customers: 1824 years old students,
young generation, and
most of them are
females.
It offers five-star
products and fair
prices to win the
Taiwanese market.
Exclusive food
taking window and
process; open
working space
ve
De
Dis
trib
utio
n
.
Org
me
lop
nt
85C is the visual
focus; it is easy-toremember brand
Four stages of
marketing (AIDA)
are successful.
Fig. 2 Innovative structure of the Bilderbeek model for 85 Café
Marketing
Immediate reward
and share Unrelated
to politics and
government, stocks,
out-of-business
investment and loans
Customers are
benefactors and coworkers are family
members Dolphin
reward system
Computerization
process
ve
De
Dis
trib
utio
n
.
Org
me
lop
nt
Plan of lion dance
group
Fig. 3 Innovative structure of the Bilderbeek model for Wang Steak
15
Marketing
Private butler service
hotel: Tai Pan
Residence & Club
Operational strategy
upon profits and
innovation
Introduce TCE-Total
Customer Experience
to enhance service
quality Traveling plan
of “home-to-hotel” of
the club
e-reservation device to
deliver data by WWW
ve
De
Dis
trib
utio
n
.
Org
me
lop
nt
Guest rooms feel
like home
In August 1992,
Four Seasons
Hotel and Regent
Hotel formed an
alliance.
Fig. 4 Innovative structure of the Bilderbeek model for Grand Formosa Regent
Marketing
The highest quality
and the fairest prices
are the key brand
meanings of Sushi
Express Group
Logistics and
online
shopping
.
Org
ve
De
Dis
trib
utio
n
Actively create a
dining environment
and serve the
customers by
concepts of “health,
nutrition and
delicious”
me
lop
nt
Materials from origin
of production: 65% is
imported from foreign
nations and 35% is
purchased in Taiwan
Fig. 5 Innovative structure of the Bilderbeek model for Sushi Express
16
Marketing
Promote the “Aid
Plan for Bunun
Children” to care
for aboriginal
children’s
education.
Emphasize on
human
characteristics and
quality; respect
customers and
employees
Computer
information
system
ve
De
Dis
trib
utio
n
.
Org
me
lop
nt
In 2002, President
Starbucks Coffee
Corp. had 100
stores in Taiwan.
Fig. 6 Innovative structure of the Bilderbeek model for President Starbucks
17
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