Essay on Analysis of DSY company

Submitted By eric920110
Words: 1999
Pages: 8

Introduction of Da San Yuan Company

Da San Yuan restaurant is located in Jingshan Park West 50th Street, Was surrounded by the Forbidden City, Jingshan, the North Sea three Royal Garden. Business area of more than 1600 square, Can accommodate 280 people with more than more than 10 various styles of luxury room, the largest room can accommodate 40 people for dinner. The decoration is luxury and elegant, exquisite cuisine, Attentive service as well as antique dining environment. For decades, Da San Yuan restaurant is appreciated by National leadership and the customers at home and abroad, is given the first name of Cantonese cuisine in Beijing.

Porter's five forces model analysis

Five forces analysis model is made in the 1980's by Michael Porter. It has global - reaching impact on the enterprise strategy formulation. Analysis for competitive strategy can be effective analysis of the competitive environment for customers.

According to Porter's viewpoint,a competition in the industry, there are five basic powers of competitiveness: Suppliers bargaining power、 buyer bargaining power、potential new entrant、 threat of substitute product、the rivalry among competing sellers. The situation and comprehensive strength of these five basic competitive forces, determines the degree of competitive during the industry, so as to determine the final profit potential in the industry and the degree of the flow of capital to the industry, which ultimately determines the ability of enterprises to maintain high yields.

一、 Potential new entrants
Potential new entrants are an important force for competition in the industry,Most of these new entrants have new productive capacity and some of the required resources, look forward to establishing a favorable position in the market.

二、 Threat of substitute product
Two companies in different industries in a competitive situation, the reason is the product of these enterprises with Substitution properties.

三、 Buyer bargaining power
Buyer is customer,the competitive power of buyer,needs concrete conditions. But there are three main factors: Number of products required by the buyer, the cost of purchased alternatives, their pursuit of the goals by the buyer.

四、 Suppliers bargaining power
The competitive force strong or weak of supplier depends largely on market conditions of the supplier industry and the importance of items they offer. Threat means of vendors is to improve the supply price, reducing the quality of the corresponding product or service, thus reduce downstream enterprise’s profits.

五、 The rivalry among competing sellers
This competition is one of the most powerful forces,these competitors according to their own set of planning, use of various means ( price, quality, design, service, guarantee, etc ) tried to occupy a favorable position in the market and compete for a number of consumers, pose a great threat of their companies.
Da San Yuan Restaurant Porter's five forces model analysis
一、 Potential new entrants strong
Potential competitive threat status depends on the level of entry barriers and the impact of the original enterprise of industry. If there are high barriers to entry and original enterprises fight back strongly that Potential competitor hardly to enter the industry and competitor’s threat is small. On the contrary, the threat is big. The main force of entry barriers is strong or weak. It depends on following several aspects: economies of scale, product differentiation, demand for fund, switching cost. The same applies to Da San Yuan Restaurant. Avila, Ernesto A., 07/2001, Competitive Forces That Drive Civil Engineer Recruitment And Retention, Leadership & Management in Engineering, Vol. 1 Issue 3, p17

(一) Entry barriers low
1,China's current top - grade business banquet restaurants sizes are smaller, scale advantages are small.
2,Funding needs for low.
3,Resource…