Porter's Five Forces For Bread Cake

The power of buyers in the industry varies at different levels depending on the field. For pharmaceutical drug companies, which have thousands of patients, customers have lower price sensitivity as they are rarely able to refuse the treatments they need and they have low bargaining leverage due to commonly lack of information as well as knowledge on the drugs. For biotech firms that distribute specialized products to the government and hospitals, their customers actually have more of a bargaining power due to being the sole consumer sources

An industry product can be substituted by a substitute product which has the same or similar function by a different means. A substitute can limit industry profitability and growth. Porter (2008) gives several key elements on determining the threat.

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

Bargaining power of buyer: 46% percent brand loyalty means product is important to customer and he can pay more for the product – had positive effect. Also a large number of customers minimize bargaining leverage.

The bargaining power of customers determines how much customers can impose pressure on margins and volumes.

Define: Pressure suppliers can put onto their customers by increasing prices, decreasing the quality of items, and minimizing availability

The market greatly depends on how powerful buyers are in terms of their willingness to pay certain prices. The following determines the bargaining power of buyers

Crisp, brown, delicious -- these all describe the sensation of bread, a food that has managed to survive throughout time. Thought to be created more than 7000 years ago, bread has played a role as a staple food from the Ancient Egyptians to the people of today. Bread is now used as a main food source that is eaten all over the world. Even in the midst of the colonial times, colonists created bread as a main food product in their time. Bread was made in the colonists' daily lives, for it was a versatile food that was simple to make. By following steps and having some patience, we may recreate bread like the colonists once did.

Leben Group Bakery, strives in providing fresh bake food to the community where it operates. With its commitment to produce quality bakery products cost effectively, in an environment that is perfectly clean, safe and friendly to both employees and the community.

A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of

Unlike Food Republic, these chains have discount cards to build on customer loyalty and they have a broader reach to consumers as they operate more outlets in Singapore. Its largest competitors, Kopitiam, have even catered to the Muslin community by opening Banquet, a full-fledged Halal food court (scribd). On the other hand, the closest competitors of its restaurant business segment are Crystal Jade and Imperial Treasure restaurants, both of which offer a similar dining concept at comparable prices. Meantime, new entrants and existing bread firms like Four Leaves, Prima Deli Bakery and Bangawan Solo are also competing with BreadTalk directly to offer more bread selections. Similar product offerings are easily imitated at highly competitive prices which will significantly affect BreadTalk's revenue of the sales of bread. Lastly, threat of product substitutes is present for the Group as customers face low switching cost for takeaway snacks from joints such as Old Change Kee and Mr.

- Suppliers’ bargaining power: The company does bargains with the suppliers, suppliers are first carefully selected by carrying out bidding then a fixed price is set by multi consent then material is provided by the supplier.

Buyer Power: here you ask yourself how easy it is for buyers to drive prices down. This is also driven by the number of buyers, the importance of each individual buyer to your business. The cost of customers substituting your product or service for someone else’s and so on. If you deal with very few, powerful buyers, then they are often able to dictate terms to you.

The threat of substitutes: where it refers to substitute product as those that are available in other industry which can also fulfil the need and want of the consumers. It can affect competition in an industry by placing an invisible ceiling on prices which companies within the industry can charge, due to the fact that if the cost of substitute is low then the consumers will tend to purchase substitutes, therefore limiting the prices that a company can place on certain items to gain maximum profit. For example, lemonade can be substituted for a soft drink. Generally, competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumer 's switching costs decrease.

Café Bengaliyana is a locally owned fast food and Indian cuisine store that will be situated as a national establishment through its imaginative way to the organization 's presentation and its image. This will be a sole proprietorship business which will give an extraordinary mix of great nourishment and administration at quality valuing, with a craftsmanship arranged climate. Cafe Bengaliyana is the best response to a developing interest for different sorts of fast food and Indian cuisine in a gathered spot. Like, Auckland