Brief Explanation of AYE Anything-you-eat (AYE) Supermarket is the retailer business which added value by acquire products (eg. dairy product, laundry product ,etc.) from many vendors and sell them in the one place. AYE sells the product to local customers and it has only one original branch in Bangkok. AYE’s Five Forces Model Five forces model are used to analyze a business by comparing our business with competitors, so when we done it, we can see a way to improve a business. Type (Strength Factor) Competitive Force Threat Strength Assessment Competitive Substitute Small Grocery Most of city people loves to have make a small purchase so sometime they have not to buy small things from large supermarket. …show more content…
Consumer switching costs are low Consumer change their mind to buy products from other companies easily because of their royalty to our brand. Weak The competition in supermarket industry become more competitive since the market share of supermarket has decreased since 2008 and products that sell in supermarket is not difference from our competitor that much so consumers can change to buy from our competitors easily. Supply Chain bargaining power Supplier Time of Transportation Supplier can’t deliver supplies in time because of the distance between suppliers and AYE’s address. Vendor AYE orders a large amount products from many vendors and some of the product is substitute to each other so that we have more bargaining power to them. Strong Time of transportation is not actually a problem for AYE but the problem is actually comes from stock estimation. Customer Small Purchase AYE’s main customers are individual and make a small purchase due to lifestyle of city people. Strong We don’t have to make a small purchase to be a larger one but we can use the promotion and point system to gain more small purchase and loyalty from customers. Explanation Substitute …show more content…
We are not only take care a customer by look after them in the supermarket but we also have a carrying product service to the car park for a customer who buy a product in a weight that we defined. BPMN The reason that why the AYE supermarket using the BPMN in business because it’s can see all of processes. Beside, can see the boundary easily about activity of AYE such as import and export products, sell the product and promotion,etc., Overall The perspective of overall has three main processes, including promotion, POS and stock management. First is promotion, in this process explains about the process of advertising the promotion to the customer till the customer bought products with applying a promotion. Next is POS (point of sales) system tells about AYE financial transactions and keep all track transactions (e.g.,product sold and discount ). Last overall is stock management is about checking, counting and updating all product in the stock. That’s all of the overall of AYE supermarket. Stock
Bargaining Power of Buyers The level of bargaining power of buyers is moderate because one of the reason is Coles does not have much competitors to compete with. Their Consumers can switch brand easily because they are very sensitive to price and will compare and choose the cheapest alternative. However, the Federal Government and ACCC has set a restriction to lower down the competition barriers to allow new competitors to enter the market which will widen consumers choice and lead to increase of bargaining power of buyer level to high. Threat of Substitutes The level of threat of substitutes is high, this means that Coles has a lot of indirect competitors such as farmers’ markets, specialist grocery stores and convenience stores. These indirect competitors posed a serious threat to Coles.
The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing
A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them. The bargaining power of suppliers will be low as there are many suppliers in the market offers similar products and this allows courts to switch to other suppliers that offer lower cost. Intensity of rivalry within industry High Threat Competitors in the industries There are quite a number of businesses involve home furnishing and electrical appliance.
Brand loyalty is a concern of other competitors but Trader Joe’s. Having no brand products can become a strategic
These firms supply around 25% of retail products where as 75% is purchased from more than 2000 producers. Threat of Substitutes The products that Eataly is offering include wine, pasta, pizza and cheese being their universal product. Eataly is able to differentiate them with artisanal slogan. On the other hand ‘small size market chains’ or larger stores might supply similar or same products from and can be compete or substitute Eataly in long term through changing their structure (Carlucci & Seccia,
• Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with
Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from
As the largest company in the industry in North America, Sysco easily implements their strategy as redividing profitability. By adding values to their products, customers don’t just buy food as normal. Instead, customers recognize certain values that they receive from the food they buy. Increasing the value also becomes common in today business because there are many companies in the same industry provides similar products or
The Indonesian Mattress and bedding industry will be analyzed using the Porter’s 5 forces model: Porter five forces that determines an industry’s competitiveness (Porter, 1979), which will give an indication of how the industry affects DAP. The five forces are the “Bargaining Power of Suppliers, threat of new entrants, threat of substitute, bargaining power of buyers, and the industry’s rivalry. Threat of Substitute products or services: Low As a mattress manufacturer, DAP supplies Spring Bed Mattresses, Box Spring Mattresses, Memory Foam Mattresses (Tempur-Pedic) and Latex Mattresses.
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
3 Porter’s Five-Forces Model Analysis Different factors can be combined together in a simple business model. This is known as Porter’s Five-Forces Model and competitive circumstances of an industry can be analyze through this model. These five forces are critical forces that they determine the attractiveness and competitiveness of an enterprise and have influence on a firm’s profitability in its industry. The five-forces analysis can not only show how Walt Disney company builds a sustainable competitive advantage in Entertainment-Diversified industry but also can seize business opportunities in future development.
The five forces of Porters framework are important for Virgin Atlantic to monitor in order for them to assess the attractiveness of the Porters five model is necessary to monitor this factor to continue in assessing the attractiveness of the industry and also to determine how to use the forces to gain competitive
BACKGROUND: Deliveroo is a British online food delivery company that operates in the UK, the Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Dubai, Australia, Singapore & Hong Kong. It was founded by two childhood friends Will Shu, who has a background in finance, and developer Greg Orlowsk in 2013. This unique idea arose to founder, Will Shu, when he moved from New York City to London to work as an investment banker and was dissatisfied by the food delivery options. He witnessed that customer’s choice was limited only to restaurants that already provide a takeaway service. Thereby, he analyzed the opportunity to exploit the niche market by creating partnerships with higher-end restaurants.
Pharmaceutical products require various types of organic chemical. There are a number of chemical suppliers present in the market. Instead of buying chemicals at the high cost, pharma companies can switch from one company to other. For specific APIs where the sourcing of raw materials is difficult, suppliers have a higher bargaining power but since most raw materials are easily available and suppliers are numerous, where one can easily replace the other, their bargaining power is low. " Bargaining power of buyer:
A critical review of the retailer was carried out based on the external factor analysis using PESTLE (Political, Economic, Sociological, Technology, Legal and Environmental) and using Porter’s Five Forces Model of Competition to understand the correlation between suppliers, buyers, competitors within an industry, potential competitors, and alternative solutions to the problem being addressed. Background of the Company Giant was founded by the Teng family as a simple grocery store in one of the suburbs of Kuala Lumpur in 1944. Acquired by Diary Farm in 1999, Giant’s mission was to offer a wide variety of products at the lowest possible prices and closer to residential areas. Key to Giant’s growth is the ability to continuously offer value for money products and the core principles are retained even while pursuing the international brand status.