Deli Essay

587 WordsSep 13, 20123 Pages
The Hometown Deli has been in our family since 1952. As a child, I was never able to take a decision but I always was my grandfather’s preferred grandchild. Therefore, I had to become the owner of The Deli and a decision maker after his death. Since 1952 the Hometown Deli has never had a competitor in our town. However, one of Deli’s employees has heard a rumor that Wall Street Deli might be opening a store a few blocks away. In order to reassure our staff that the competition will not affect our business and make the Deli meet the standards and challenges of the new era, I will analyze the Hometown Deli using Michael Porter’s Five Forces Model, which helps to understand the current competitive position of an organization, and the strength of a position the organization is considering move into. The Porter’s Five Forces Analysis will help me to create a new strategic direction and plans for improvement of our business model and recognize how technology solutions can enable strategic outcomes. That way The Hometown Deli should be able to successfully transit to the 21st century and sustain the new changes. The Porter's Five Forces model assumes that there are five important forces that determine competitive power in a business situation. They are: Buyer Power, Supplier Power, Threat of Substitute products or services, Threat of new entrants, and Rivalry among existing competitors. Buyer Power Our present customers are middle class people from the neighborhood that purchase our products once or twice a week for their families. These customers have known our foodstuffs through their grandparents and parents and have been buying our products for their quality. I am sure that the most of them will not change their choice of Deli Store and will not affect our existing prizes even if a new Deli store will be open down the street. Moreover, I observed that in the last

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