Subject category:
Strategy and General Management
Published by:
China Europe International Business School
Length: 13 pages
Data source: Field research
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Abstract
YongFoo (meaning elegance and fortune in Chinese) Elite is a private club offering food and beverage services. It was opened in 2004 in the venue of an old villa in a quiet concession in Shanghai. Since its operation, YongFoo Elite became one of the leading private clubs in China through attracting celebrities, business elites and senior government officials. The success of YongFoo Elite was mostly credited to its brilliant interpretation of the luxury and fashion culture of Shanghai in the 1940s. Different from other private clubs, YongFoo Elite welcomes customers both with and without membership. The founder, Xingzheng Wang, and his management group have a debate on the business model. Should YongFoo continue serving all customers or offer their service only to a small number of member customers? Which business model would bring sustainable growth while maintaining a high-end brand image?
About
Abstract
YongFoo (meaning elegance and fortune in Chinese) Elite is a private club offering food and beverage services. It was opened in 2004 in the venue of an old villa in a quiet concession in Shanghai. Since its operation, YongFoo Elite became one of the leading private clubs in China through attracting celebrities, business elites and senior government officials. The success of YongFoo Elite was mostly credited to its brilliant interpretation of the luxury and fashion culture of Shanghai in the 1940s. Different from other private clubs, YongFoo Elite welcomes customers both with and without membership. The founder, Xingzheng Wang, and his management group have a debate on the business model. Should YongFoo continue serving all customers or offer their service only to a small number of member customers? Which business model would bring sustainable growth while maintaining a high-end brand image?