COMPETITIVE ADVANTAGE OF

TEA HOUSE RESTAURANT AND CAKES

IN BAGUIO

By:
Sheena M. Dalmen
John Michael S. Felix
Vergel M. Laya
Francis B. Matunan
Kristine Marie L. Mabalot
Purpose of the Research
Baguio City is considered to be the Summer Capital of the Philippines because of its cool climate
even during warm seasons coupled with the rich culture of its people leading to frequent visits by
local and international tourists. With that being said, different types of businesses that cater mainly
to the tourists are flourishing in all parts of the city. Hotels, souvenir shops, malls, and most
importantly restaurants are some of the more profitable businesses being put up.

Tea House Cakes and Restaurant is located beside Session Road, the most frequented spot in
Baguio City because of it being in the vicinity of the central business district and being the most
convenient route to most of the major universities within the city. There are 82 restaurants situated
along session road and Tea House Cakes and Restaurant is one of them, a 43 years old restaurant
that not only have survived its competition but also managed to thrives up to this date.

Tea House Cakes and Restaurant has gained the curiosity of the researchers because of its
success through the years of operation and increasing population of its competition. The
researchers are aware that location contributes greatly to its success which is why they turned their
attention to two factors that support the growth of Tea House Cakes and Restaurant, the two being;
Product differentiation and Customer service.

By determining the level of confidence of the customers on the product and service that they avail
in Tea House Cakes and Restaurant, the researchers would be able to recognize how customers
react when they avail the products and services and point out some areas of improvement which
would serve as guide for Tea House Cakes and Restaurant towards furthering their growth.
Theoretical and Conceptual Framework

The researchers have concentrated their efforts on the competitive advantage Tea
House Cakes and Restaurant in terms of Product Differentiation and Customer Service.

Competitive Advantage:

Customer Service:

Customer service is important to an organization because it can help differentiate a

company from its competitors Drew Stevens (2008). It is the badge that every company
wants to wear because satisfied customers stays loyal to them and recommends them to
others. Alistair Kight (2012). The never ending pursuit of excellence to keep customers so
satisfied that they tell others how well they were treated when doing business would lead to
the understanding the efforts and expenses invested to retaining customers. Realizing that
when people avail something, they also avail satisfaction as well as goods and services.
Keeping customers satisfied is more difficult because it involves all aspects of the business.
Megginson , Byrd and Megginson (2006). Alistair Kight states that keeping customers
require time, effort and significant budget.
Theoretical and Conceptual Framework

Product Differentiation:
Design and Methodology

Design and Methodology:

The researchers utilized descriptive method of research which aided in

identifying the factors of competitive advantage that help Tea House Cakes and
Restaurant to continuously thrive despite its increasing number of competition. The
researchers also used questionnaires to support the design.

Population and Locale of the Study:

The respondents of the study are randomly selected individuals who have purchased
the products and services offered by Tea House Cakes and Restaurant.

Data Gathering Tools:

The researchers used books, the internet, and questionnaires to achieve

substantial information to satisfy the problem at hand.