This paper addresses the use of Porter’s Five Forces model and how it can benefit Broadway Cafe by identifying and analyzing the effect of these forces on its business. The benefits include improved decision making, faster time to market, better productivity, improved competitive advantage, more profits and greater customer satisfaction. It also helps in achieving operational excellence.
Porter’s Five Forces Model
Threat of Entrants
Porter's First force is the threat of Potential Entrants. Statistics have shown the industry to be slowing down, therefore making competition high and the threat of new entrants low. Broadway Cafe has a small market presence, but the presence of its competitors like Starbucks …show more content…
By evaluating the Porter’s five forces model, it can be summarized that Broadway Cafe is in a very tough environment. Though the risk of new entrants is low, but the threat from existing competitors is very high. Broadway Café needs to be very focused on the customer relations and the quality of their products. Broadway Café can try to offset high bargaining power of buyers by implementing loyalty program. Given the scale of business and the strong influence of competitors over the suppliers, it is difficult for the Broadway Cafe to have a strong control over its suppliers. Since Broadway Cafe is in a food and