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1.2 PROBLEM STATEMENT

1.2.1 SWOT ANALYSIS

Table 1.1 Nancy’s Kitchen SWOT Analysis

S STRENGTHS WEAKNESSES W
• Offers a wide variety of products and • Not well-known by the youngsters
services
• Weak social media engagement,
• Well-structured website design and especially Instagram
development

O OPPORTUNITIES THREATS T
• Domestic and internationally • Competitiveness
gastronomic attractions

Table 1.1 illustrate Nancy’s Kitchen SWOT analysis. On the context of strength, Nancy’s Kitchen can be considered as a long-standing
restaurant operating since the year 1999. It had been designed and developed a well-structured website introducing the founder and chef, the
menus, in-house catering service, cooking class, business operating hours, and contact methods. Thus, it can be seen clearly with a wide
variety of products and services being offered by Nancy’s Kitchen.

Even though Nancy’s restaurant is always listed in the top listing of authentic Baba Nyonya restaurants in Malacca, it is not well-known by
the youngsters, no matter locally or internationally. This is mainly due to the weak social media engagement, especially on Instagram. As
Instagram continues to grow in popularity, reaching over 500 million active monthly users (Instagram Press News, 2016), there are 320
million global Instagram users aged between 18 to 24 years, and 354 million global Instagram users aged between 25 to 34 years. According
to an observation on the Instagram homepage of Nancy’s Kitchen, the number of followers is relatively low, which is not more than 500
people in November 2021. The low interaction with its followers, non-amazing and impressive homepage, and traditional marketing
propaganda will be the main weaknesses of Nancy’s Kitchen to achieve its business core purpose of building brand awareness and increasing
customer satisfaction. Digitalization in entrepreneurship and marketing should be prioritized.

Baba Nyonya cuisine is one of Malacca’s distinctive dishes as a form of acculturation of Chinese and Malaysian culture which can represent
one of the gastronomic attractions of Malaysian tourism and hospitality industry. With the well-planned and effective publicity or advertising,
Nancy’s Kitchen will be able to cope with the challenges of suffering thoroughly due to the Covid-19 pandemic at the current stage. Both
domestic and international tourism markets have unlimited potential.

The growing competition in the same industry is the main threat that might be faced by Nancy’s Kitchen. Besides competitors from other
Baba Nyonya restaurants at Malacca, there are also lots of fast-food restaurants, café, fast-casual, contemporary casual restaurants emerging.
With an increasing innovation implemented in the food industry, more and more choices are being offered. Apart from that, competition on
social media advertising might also influence the tourists’ intention towards a restaurant. As people are surrounded by advertising,
information, a variety of goods, stores, and shopping malls, and having a greater choice of purchasing opportunities, customers’ decision
making in purchasing food products has become more complex and even more important nowadays than in the past (Yasin, 2009). Thus,
creating and maintaining loyal customers is a challenge for Nancy’s Kitchen, especially during this peak covid-19 pandemic period.

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