Power of Suppliers and Power of Buyers

The study begins by explaining how much the residents of Gourmand love good food. They love food so much that that over time, a commission of distinguished chefs had decided that not any one should be capable of opening up a restaurant. If a restaurant was to be open, a chef would have to have 21 years of training, attend a prestigious school, and obtain a license to become a chef. These guidelines would ensure that when a resident would go to a restaurant, the food would be good. The first-class quality of food consequently rose the prices of restaurant meals to become very expensive.

The change in consumer’s real household disposable income and increase in demand for take away, restaurant foods can have a major impact in this particular industry.

Buyer power is the first force from Michael Porter’s Five Forces. Buyer power is high when buyers have many choices from which to buy and low when their choices are few. Any industry would want to lower buyer power to create more of a competitive advantage. When buyers have less to choose from its makes it more likely to have a chance of having your particular company chosen. Any group or company can be the first to do something but soon another will follow suit. The reason a company was chosen is because of a new innovative form to deliver a particular item or service. When another company creates something similar, competitive advantage has been lost. The movie rental industry has changed vastly throughout the years. Blockbuster was the driving force in movie renting now Redbox and Netflix are leading the game. Netflix was the first person to provide movie rentals online, of course now Google Play YouTube, Apple, and Amazon provide that service as well.

For restaurant retailers, the power of suppliers is high. This can be indicated by lack of substitute produces and low importance of restaurants as buyers.

In this paper I will compare my favorite restaurant, Olive Garden, to its most direct competition which in this case is Milestones Bar and Grill. These two restaurants are in competition because they target the same market and are located within one block of each other. Each restaurant is owned by one of top restaurant companies in North America. Olive Garden is owned by Darden Restaurants which also owns Red Lobster, Smokey Bones, Bahama Breeze, Longhorn Steakhouse, and Seasons 52. Cara Operations Ltd. is the owner of the Milestones chain as well as Montana's, Swiss Chalet, Coza, Kelsey's, and several others. Although there are several other restaurants within the same area as the two I have chosen, I

Kudler Fine Foods is a gourmet food store which also offers in store parties in order to introduce customers to their products and also teach customers how to prepare their specialty foods. They have expanded to three stores and are continuing to see growth opportunities in their industry. Kudler Fine Foods has planned on contracting with local growers to obtain their produce and now they want to add a catering service. Before they can do so, they must run the possibility fully through a marketing standpoint in order to assure the success of this project. This study will comprise of the opportunities Kudler Fine Food has in its marketing mix that will help them operate a successful catering business.

So what is the most important thing in a restaurant? You’d think it would be food. In a talk given by Thomas Keller, a restaurant owner, about what excellent food does to a restaurant, Mr. Keller talks a lot about the quality of food, and a customers experience. The experience that one has in a restaurant is something that should be completely about the consumer. If the consumer does not have a good experience at a restaurant, there is a good chance that he or she will not come back. The quality of the food at a restaurant can depend a lot on the quality of ingredients. It’s important to always have the

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

The current position of Castle’s Family Restaurant is quite stable, but changes in the business environment may have a negative impact on the further business development of the company.

The SWOT analysis of ASDA can help the organization to make strategic decision regarding their internal and external environment. However, Porter's model is also an effective analytical tool to evaluate competitive strategies. ASDA food has now strong sourcing and distribution network, they want to maximize their market at the each corner of the country as well as in the abroad. The parent company 'Wal-Mart' has strategic planning on the market expansion of ASDA food.

TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20

The research will examine aspect of fine dining industry in Singapore. I will be assessing the competitive strategy of western fine dining restaurant in term of retaining existence customer and attracting new one. In order to identify retaining successful customer I will undertake survey in term of customer satisfaction and willing to pay. I will also interview restaurant’s managers who handle strategy and execution in order to develop attracting new customer. Last I will conclude with a good strategy would help a restaurant

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

Market segmentation methods that reliably utilize information about family life cycle to ascertain consumers' preferences for dining in restaurants have not been established. As a result, the foodservice industry may well be forgoing substantive opportunities to market to restaurant patrons and to strengthen the attractiveness of dining out experiences. Indeed, the tourism and hospitality literature points to a relation between the demographic attributes of families and food purchases that are made away from home. Evidence of a viable market can be taken from the rate of growth over several decades: the amount of discretionary money that American families spend on dining out has increased from 25% of their food budget to 50% in the years spanning 1955 to 2006.

The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.