Case Study Stage 1
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- Date Submitted: 10/30/2011 08:27 PM
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Case Study, Stage 1: Business Environment Analysis
Perform a detailed Porter's Five Forces analysis for your Hometown Deli, addressing each force in one or two sentences and defining the force, its impact on the Deli and your strategy or strategies for dealing with it.
• Since the customers have a wide array of options to select from The Hometown Deli's buyer power is high. Offering some type of loyalty customer rewards would help to lower the force. Also a coupon punch card may be a good idea as well.
• The supplier power is low; as there are a great number of suppliers that offer various deliveries options and also have the capability due to having internet access and have multiple deliveries options to choose from which will allow for best value and price.
• The threat of substitute products or services is high. There is a variety of competition present because the access difficulty in this market is low and does not require a lot of familiarity. Providing some type of unique service unlike the competition will help reduce the threat.
• The threat of new entrants is high, as new businesses start flocking to the area. The good news for The Hometown Deli is that the new businesses will not have the same advantage as Hometown which is their deep roots in the community.
• Among current competition deli industry is high. Possibly using the switch cost methods would help reduce the rival power. Putting unique services that are only offered at The Hometown Deli would help with staying one step ahead of the competition.
Determine which of Porter's Three Generic strategies (see textbook) you will use as you rebuild your Hometown Deli for the 21st century and explain why you selected it.
Cost Leadership Strategy. By using this strategy this will allow The Hometown Deli to target a broader market which will allow the deli to keep their prices lower and allowing them to remain profitable for a...
Perform a detailed Porter's Five Forces analysis for your Hometown Deli, addressing each force in one or two sentences and defining the force, its impact on the Deli and your strategy or strategies for dealing with it.
• Since the customers have a wide array of options to select from The Hometown Deli's buyer power is high. Offering some type of loyalty customer rewards would help to lower the force. Also a coupon punch card may be a good idea as well.
• The supplier power is low; as there are a great number of suppliers that offer various deliveries options and also have the capability due to having internet access and have multiple deliveries options to choose from which will allow for best value and price.
• The threat of substitute products or services is high. There is a variety of competition present because the access difficulty in this market is low and does not require a lot of familiarity. Providing some type of unique service unlike the competition will help reduce the threat.
• The threat of new entrants is high, as new businesses start flocking to the area. The good news for The Hometown Deli is that the new businesses will not have the same advantage as Hometown which is their deep roots in the community.
• Among current competition deli industry is high. Possibly using the switch cost methods would help reduce the rival power. Putting unique services that are only offered at The Hometown Deli would help with staying one step ahead of the competition.
Determine which of Porter's Three Generic strategies (see textbook) you will use as you rebuild your Hometown Deli for the 21st century and explain why you selected it.
Cost Leadership Strategy. By using this strategy this will allow The Hometown Deli to target a broader market which will allow the deli to keep their prices lower and allowing them to remain profitable for a...