Q 1. Perform a detailed Porter's Five Forces analysis for FridayFriday
Eatery. Be sure to highlight entry barriers and switching costs.
Buyer power : The buyer power is low . The restaurant is located in the heart
of a small regional city. The restaurant has no competitors in the
neighbourhood. So the citizens living in the small regional city do not have
much choices to try out. Even if there is a restaurant opening soon in the
neighbourhood the FridayFriday Eatery can keep the buyer power low by
introducing loyalty program.
Supplier power : The supplier power is high. FridayFriday Eatery is the only
restaurant in the neighbourhood serving different kinds of specialised coffees,
teas, a bakery, and homemade meals. There has been no competitors in the
neighbourhood . So the customers do not have much choices to choose from
than to depend on FridayFriday Eatery.
Threat of new entrants: Threat of new entrants is high. There is already a
rumour about the coffee club opening a store nearby the Eatery. The setup
cost for a Eatery is not very extravagant, which means new eateries can enter
the market with not much hustle.
Entry barriers are low. The cost to setup an coffee shop or a small Eatery is
not that high. So overall the entry barriers are not high in a restaurant industry.
Threat of substitute product or service : The threat of substitute is low.
FridayFriday Eatery is the sole Eatery as of now. The rumour of a the Coffee
Club opening a store nearby the restaurant will affect the FridayFriday Eatery
but not that much. To reduce the impact on the restaurant effective use of
switching cost can be made . The restaurant can offer a 10 percent discount to
the regular customers or give a fr...
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...ia available. People like to chat,
watch videos and surf internet while they are eating. With free internet and
great food available at FridayFriday Eatery that would be an added advantage
for the Eatery and will attract more customers. Considering the switching cost
factor people will avoid going to different restaurants as they would not be
able to take the advantage of free internet while eating. So switching cost
would increase. This will definitely give the Eatery an image of a 21 century
restaurant. The free internet will boost some sales too. People who just come
to use the free internet will sit for a while and then would definitely order a
coffee or a quick snack. Lastly having internet would target all kinds of
audience. Students, businessman, etc would require internet and providing
them at ease would help the running of the Eatery.
Ideally, you would like to be in a market where there are few substitutes for the product or service you offer. It is true that a potential customer can ultimately make their own sandwich or cup of coffee. Yet do these customers have the time and resources to do it? Most likely this will not be the case. The Café can reduce the threat of substitute products by lowering its switching costs. Customers may be more reluctant to switch to a different product if the competitors sandwiches are not as fresh or homemade. Customers place a higher value on fresh, homemade breads and ingredients.
The location is one of the most critical factors to analyze thoroughly because it helps predict whether the sales of the choosing location will be good or not? Although the Boiling Crab is in the growth stage, it still has to focus on new locations that the owner plan to extend to these areas. As I mentioned in the introduction, the owner plans to open the Boiling Crab in four new locations soon.
The literature suggested that “Rapid changes in the external environment of organisations have been accompanied by calls for accountants to change the nature of information they provide, the skills they possess and the role they play in the organisation. The proposed changes, which are encapsulated under the phrase accounting for strategic positioning or strategic management accounting are two pronged. On one hand accountants are required to reposition themselves in the organisation hierarchy where they will be involved in the formulation, implementation and choice of strategies. Accountants are also being urged to adopt a range of techniques whose emphasis is futuristic and external to the firm especially emphasizing the importance of monitoring customers and competitors.” (Nyarnori, 2000). Based on my studies on the industry of stock brokerage, I agree with the statement that “The tools and techniques that were covered in the Strategic Cost Management and Strategic Business Analysis courses are very useful in providing decision oriented information to senior management in my organisation and such information will ultimately enhance its corporate value.” The essay (How Porter’s Five Forces Model shapes strategy for a new and small-size stockbroker) may be one of applications of those techniques learnt from the Strategic Cost Management and Strategic Business Analysis .
there are 3 switching cost that consumers face, which are Procedural, Financial, And Relational switching costs.
After a long day in school and studying, every student needs a night off to just relax and enjoy a meal at a restaurant. In this modern time, some aspects of a restaurant can be the deciding choice. Many choose their restaurant of choice based on either those they are with, their personal, cultural appetite, their routine eating habits or their mood. Some of these preferences are similar yet others are the deciding differences. Two common franchise restaurants that pose differences are Applebee’s and Olive Garden. These two restaurants present their differences in environmental and food options causing a choice between them.
The restaurant business is a challenging industry and if a company has a strategy that works for them as well as their employees, it should stay the course and tweak as needed.
Its menu includes specialty pizzas with meat, vegetarian specialty pizzas, appetizers, and salads. It is open every day of the year except Thanksgiving, Christmas, so, we can dine-in, carry out, or place an online order and get it delivered. The store hour is from Sunday to Thursday, from 11:00 a.m. to 10 p.m. and Friday to Saturday, from 11:00 a.m. to 11:00 p.m.
Barrier to entry: - High barriers to entry, to a certain extent help understand the risks involved in operating in the aircraft industry.
When different kinds of menu for lunch and dinner are included, there is an opportunity for attraction of more clients in the new outlet
McDonalds traditional competitors include many of the other fast food outlets across the country, i.e. Burger King, Taco Bell, KFC, Wendy’s. It has been shown by Professor Michael Waterson (2004) that the presence of a Burger King, for example, will increase the likelihood that McDonalds will open near by. Thus it can be seen that the threat of competition from traditi...
The cafeteria serves about one hundred and fifty residents of Cambridge Hall and approximately one hundred residents from Nottingham Hall. The cafeteria serves hot foods, salads, snacks, sandwiches, and beverages. The data has given me information on the percentage of customers that preferred a hot meal (interactive and precooked) to snacks, the ratio of customers that prefer precooked hot meals over an interactive hot meal, line formation, service times at the different stations, arrival times and the location of the different stations. I also learned that the peak hours of operations are from 5:00 p.m. to 6:30 p.m. and that the cafeteria has two cash registers available but only one is being utilized during the peak hours. If customers decide on a hot meal there is a 2 to 1 ratio that customers will purchase a precooked meal over an interactive meal. Through an informal customer survey, reasonable waiting times were established for the precooked line (5 minutes), the interactive line (10 minutes), and the cashier payment line (1minute).
Since our primary target customers are the university students and the local residents, hence, the price of the meal must be cheap and affordable. There are 2 different groups of target customers where different levels of people have different income. Thus, we take the student’s monthly allowance into the consideration and come out with a promotion plan for the students. When the students show their matrix card, they will get a 15% discount for the bill.
The low prices at fast food restaurants may at first glance seem low, but the
...ded once they see that the sales will be increasing and tips will be larger. Good staff will increase good public relations which will result in better business. Marketing a restaurant is the most important part in running a restaurant. If a restaurant is not marketed, no one will know about the restaurant causing it to lose money to operate forcing it to close down. Prices on the menu should always be appealing to the restaurant target market and set towards the products on the menu. It is essential that a restaurant develops its staff to the fullest, for a strong staff creates better sales and the public is pleased .
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...