Another company is Sysco, a food-service distributor in the U.S. Porter demonstrates that “It led the move to introduce private-label distributor brands with specifications tailored to the food-service market, moderating supplier power. Sysco emphasized value-added services to buyers such as credit, menu planting, and inventory management to shift” (Porter, 2008, p. 90). Like Paccar, Sysco knows how to make them different from their competitors in the high competitive industry. In food industry, customers is very sensitive with price because they have many options for substitute, so companies must have a competitive prices. However, Sysco decides that they should add values to their products and improve connection with their suppliers.
In order to expand Frog’s Leap current market, the company could use some alternatives, including: increasing production, increasing their sales, promoting the winery, or tapping into new market areas. In order to increase Frog’s Leap’s sales, the company must increase production; expand their current market while tapping into new markets as well. Hiring more employees is essential in the increase of production. Also, the new hires would be able to utilize the new land creating more products. This alternative seems plausible because the utilization of the new land as well as the increase in production would offset the cost of hiring new individuals producing additional revenue.
The fast food industry can be difficult to differentiate on a single product. Differentiation in this industry can be focused more on the atmosphere and unique menu items. Brand and product advertisement can be key factors in becoming a strong brand name used in households and bringing customers in the doors.Making low operating costs along with fast turnover for a fast casual industry will prove successful. In an industry that has many different options, it is essential to cut down overhead prices to make the most from your future sales. Vertical integration could cut operating costs making profit increase, but you have to weigh the pros and cons to help determine if that is worth doing.
Product Development. McDonald’s uses product development as a supporting strategy for growth. In applying this growth strategy, McDonald’s develops new products over time, such as new McCafé products. These new products may be variations of existing products, or entirely new products. The strategic objective for this strategy is to capture more consumers by attracting them to new products.
Outlook for the future: The hopeful future for this company is to expand and grow as a franchise. Like most bakeries there is competition so improving to beat out competition is always a goal to strive for. Finding locations that fit the needs of the franchise and of the people is a way to reach these goals. Finding an audience that is open to trying cuisine from a foreign country is a way that “Le Macaron French Pastries” can expand its
Section 2: Analysis of Competition To discover effectual sources of competitive benefit, an analysis of the business’s structure should be taken on. Thus, to analyze the Tesco’s competitive atmosphere, Porter’s five forces of competition theory have been used as follow: threat of new entrants, power of buyers, power of suppliers, threat of substitutes and competitive rivalry. Threat of New Entrants Basically, the greater the barriers to entry are, the greater the possible success of the companies in a particular industry. The threat of new entrants in the food retail industry is weak. It generally involves a vast amount of capital investments to be competitive in the industry and to set up a brand.
In an attempt to improve the image of the organisation; Foyle Food Group have rebranded. The name Foyle Gourmet sounds sophisticated and elegant, this places a visage of higher quality produce which can lead to increased prices on their products but also gives the company a nice look to a potentially new customer, and this is extremely enterprising as it shows their willingness to try new things and successfully increasing profit
To find the main sources of competitive advantage that Tesco has over its competitors an analysis of the structure of the industry should be under-taken (Porter, 1980). In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.
The Porter five force model looks at the following aspects: 1. The level of rivalry in the market 2. The availability of substitute products 3. The threat of new entrants that may join the market 4. The power of buyers The level of rivalry in the market This force looks at how intense the current competition is in the market place.
Bargaining Power of Buyers (High) Chipotle must address the significant power of customers. This element of the Five Forces analysis deals with the influence and demands of consumers. In Chipotle case, the following are the external factors that contribute to the strong bargaining power of buyers: • Low switching costs (High Power) • Large number of providers (High Power) • High availability of substitutes (High