Porter's Five Forces Analysis for the Broadway Cafe.

895 Words4 Pages
1) Perform a detailed Porter's Five Forces analysis for The Broadway Cafe. a) Buyer Power : High Buyer power is the ability of buyers to affect the price they must pay for an item. Factors used to assess buyer power include number of customers, their sensitivity to price, size of orders, differences between competitors, and availability of substitute products. If buyer power is high, customers can force a company and its competitors to compete on price, which typically drives prices down Variety of products : The cafe offers many different kinds of • Specialized coffees • Teas • A full service bakery • Homemade sandwiches, soups, and salads. Bargaining power : Customers have low bargaining power since they typically can't bargain for the price of their coffee. Customers also have more options due to the large variety of products offered by number of competitors Switching cost : Based upon the low switching cost, buyers are extremely powerful in this situation. There are several coffee shops/cafes in our area, all offering similar products to customers. Discount reusable thermos and/or mug : By giving a discount to those who bring in their reusable thermos and/or mug into the store (aim to be as eco-friendly as possible) Complimentary products and services: These range from merchandise sold at our cafe to different types of good that are offered • Mugs/thermos with our logo • Paper Cups • Coffee beans/Coffee grounds • Sugar • Cream Loyalty program : The café rewards customers based on their spending.This is aimed at attracting and maintaining customers at Broadway Cafe. Through this program we will develop a competitive advantage by implementing an IT solution specializing in customer relationship management as well as other databases and interfaces that ultimately increase efficiencies, while optimizing operations Loyalty programs reduce

More about Porter's Five Forces Analysis for the Broadway Cafe.

Open Document