Hometown Deli

In: Computers and Technology

Submitted By lbritt
Words 1083
Pages 5
This purpose of this project is to analyze the Hometown Deli using the “Five Forces Model” to evaluate the business prior to making strategic improvement recommendations. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the business operates (Baltzan, 2012).
Buyer Power
Buyer Power is simply the ability that buyers have to affect price of a given item. The framework that affects buyer power can be bargaining leverage, price sensitivity, product differentiation, buyer incentives, buyer volume, substitute products available, buyer information, and brand identification (Teisberg, 2006). The major buyer factors that affect the Hometown Deli are within the marketing area. The deli exists within a small town with few buyers and no large volume of purchases from neighborhood businesses. There are no incentives to patronize the deli or reminders that the business exists. Substitute products are readily available from other potential sandwich shops. The Deli does not have a product that distinguishes it from its competitors. Hometown deli products are not important to the town’s buyers and they can do without making any purchases.
To improve customer knowledge and provide incentives to return; I would prepare a grand re-opening and marketing kick- off campaign, with all the bell and whistles. The Hometown Deli needs to update and make its place in the market known; within the entire town before it’s too late.
Supplier Power
Supplier Power entails your supply chain consisting of all parties involved in obtaining raw materials or a product either directly or indirectly. Factors that affect your supplier powers are importance of volume to the supplier; impact of inputs on…...

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