Hometown Deli Competitive Analysis Case Study Example | Topics and Well Written Essays - 1250 words

Hometown Deli agonistical Analysis - Case Study ExampleHowever, with the menace of looming competition, it is important to analyze the market and determine the potential change in profitability. It is also important to identify a strategy that will be apply to improve the business and make it viable in this time. The first aspect of Porters basketball team force compendium is the provider power, which is the importance of the supplier when serving more than one competitor (Porter, 2008). From the analysis of Hometown Deli, it tail assembly be determined that the previous owner built a net income of suppliers. This means that the supplier is a powerful force in the industry. From the products of the deli, it is evident that there are many possible avenues for getting new suppliers, so the threat of supplier power is natural depression. The best strategy to deal with the existing suppliers is to unify their services to guard from competition. This can be done by using one sup plier and ensuring that long-run contracts are used with the supplier. The second aspect of Porters model is buyer power, and is probably the about important part of the analysis (Porter, 2008). From the history of the deli, it is evident that the previous owner built a network of customers, and the new owner has to find a strategy of retaining these customers. The information indicates that the deli has been a local hot spot for many years, and the best strategy to deal with the power of the buyer is to ensure that these customers do not run low with the potential competition. This is done by ensuring that the customers retain their image of the company. In this case, Hometown Deli should provide promotional theme aimed at retaining old customers, like using loyalty programs for old customers and introducing prices for returning customers. The other factor is the threat of new entrants, which is determined by the existing competition in the region, cost advantages, barriers to entry and access to scattering (Porter, 2008). In the case of Hometown Deli, there is a big threat from competition, mainly because there are low barrier to entry and the potential competition has bigger profits, which means that they have more access to promotional content. This means that the deli is approach with the biggest threat from competition, ad to deal with it, management should come up with a way of increasing their competitive presence. The best strategy for this is to find extra sources of finance and improve the expert presence in the region. If the deli improves the service offered to its customers, it would make it easier to retain customers to the deli. The deli should be brought up to pick up in terms of competitive presence in the region. The fourth factor is the threat of alters, which is the competition faced by a business from the possibility of clients using substitute products (Porter, 2008). In the case of Hometown Deli, the main substitute product is fast food restaurant products, which is not so much of a problem. This force can be addressed by consolidating the clients preference for the deli product. The last factor is the degree of rivalry, which refers to the competition that would be posed by a rival company. Increased competition can drive profits real low since the market is very concentrated. With the threat of only one rival, it is important to establish a buckram identity otherwise the market could become a monopoly, especially since the potential com