Business Environment Analysis Case: Home Town Deli



Business Environment Analysis Case: Home Town Deli

Introduction

In this paper we will be using Micheal Porter's five forces model for our business environment analysis. This paper will also be including the improvement business model and development of strategic direction. In order to bring The Hometown Deli into the 21st century there are several changes that need to be implemented and I'm enthusiastic about its future.

Business Process Modelling for Home Town Deli

Operational alternatives include intermediary and direct. From a consumer's point of view, the business model Internet grocers use is the same old thing; the only difference is that ordering takes place using the Internet and the items are delivered to the customer's home. Upon closer examination though, there are actually two different business models (KaÈmaÈ raÈinen et al., 2001a, b). In the first model, Internet-grocers serve as an intermediary in the supply chain by picking groceries from a supermarket or ``cash and carry'' and delivering these to the households (Figure 1, I.A and I.B).

Discussion Analysis

"Model of Porter's five forces" was developed by Professor of Strategy Michael Porter in 1979. Michael Porter assumes that the notion of competition can be enlarged within an industry, should be considered as a competitor any economic operator may reduce the ability of firms involved to generate profit (Porter, 2008, 78-103). Michael Porter identifies five forces that determine it according to the competitive structure of an industry of goods or services. These forces are elaborated as follows:

Buyer Power

This is the ability of buyers to affect the price they must pay for an item. Buyer Power becomes high in this situation. As mentioned in the case study, there is a rumor that a new deli will be going in a few blocks away called the “Wall Street Deli”. Business has been declining, it is a great possibility that customers are going elsewhere beyond the neighborhood and this may be because they are not receiving services they necessarily want. This has caused less business, which has decreased revenues. There are a few strategies to keep customers coming back and to bring new customers in (Richard, 2003).

Menu, marketing, and services will be altered to what our customers prefer and with what our new customers desire

The customer population is aging and the younger generations have not been marketed to, we will start and continue marketing to the younger crowd as well as the current loyal clientele

Create a website that will present who we are, where we are located, our menu, our hours, and our history, but we will create an interactive website for community recipes, coupons, referrals, and information that customers want from the surveys and feedback we regularly receive

free Wi-Fi at the deli for all customers

Create a loyalty program with a plastic membership card that is verifiable so that customers can receive free items from our Deli after so many points based on purchases. This allows us to option to send coupons, call the customer by their first name as the card ...