Porters 5 Essay

Submitted By smoore2030
Words: 565
Pages: 3

Barriers to Entry: Barriers to entry would be things like capital expenditures. It’s not just opening up a store and start selling sandwiches. Things like location are very important and that isn’t a cheap thing.
There are a lot of policies, permits and codes the company has to go through from OSHA and the FDA to make sure everything is up to standards. Things such as building permits and cost of employees have to all be taken into account before starting. Also a huge thing with Dangelo is the proper training. Not only does the company as a whole have to hire the employees but they have to train people to be able to train the rest of the companies staffing. Since this is a corporation and not a franchise there is a lot more people to worry about rather than just one store.
Threats of Substitute: Being a food business there are a lot of room for substitutions. Yes going to a place such as Dangelo might be quicker and easier for most people but it’s hard to compete with full service restaurants. A sit down place is a lot nicer and less work for the customer. Also something to keep in mind is people make their own meals at home. As a company, Dangelo must make the food more appealing than a home cooked meal which is what is trying to be done now. The CEO has sent out many notifications to make the customers visit “pleasant and homie”. Dangelo, as a company, want to customers to feeling like the employees are their friend and want them to be able to go around and brag about how the location they visit knows their name and their order before they even come to the register. Competitive Rivalry: With food service, there are MANY different options. Sandwich shops alone, there are places like Quiznos, Subway and Panera. These are Dangelo’s biggest competition at this time.
Dangelo must market its food to be more appealing than the others so our customers won’t switch over to other places. Also, taking into account places that might be quicker such as McDonalds, Wendy’s and
Burger King or even pizza shops are huge