We are a 24/7 fast food delivery service based in Richmond, Kentucky. We cater o

Question

We are a 24/7 fast food delivery service based in Richmond, Kentucky. We cater our services towards college students who crave affordable meals at any time, day or night. Think of it as a meal plan outside of school. Most of our business is done through subscription (ala, $50 per week for 10 meals), which makes us different from most food establishments. We get our product from Gordon Food Service. I need an industry analysis...as thorough as possible Commonwealth express would be a similar concept

Explanation / Answer

Industry analysis can be done in many ways. porter's forces , porters diamond or PESTLE analysis can be done. for the above situation let us fo with the porter's 5 forces.

1) rivalry in the industry- W e can say that it is high. we can see that it is stated that there are many establishments in richmond, kenchuky who serve food.

2) bargaining power of buyers- we can say that bargaining power is high. the above mentioned business serve a week's food in just $50 which means that they need to maintain it at this price so that they get buyers.

3) substitute- this is low. we can say this because there is no substitute for food(meals)

4) potential entrants- this is high. this is because it is not a capital intensive business and anyone can enter this business as capital requirement is nil.

5) bargaining power of suppliers- this is medium. we can say that the major suppliers will be tthe vegetable vendors etc. which is ample in numbers. but they can have some bargaining power if they start hoarding vegetables etc. so bargaining power is medium.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.