Hometown Deli Case

Hometown Deli Case

Perform a detailed Porter's Five Forces analysis for your Hometown Deli

Buyer Power

It is the power that the buyers have to influence the prices of an item of purchase. This power of the buyer goes high in this situation. According to the case study, rumors have spread that a new deli is going to happen named as “Wall Street Deli”. It has been observed that business is on the decline, which might be because of the lack of satisfaction of the buyers with the quality of service being provided to them that would have prompted them to go elsewhere. Due to this there has been a reduction in the business being generated, in turn, reducing the revenues, as well. However, a few strategies might be adopted in order to attract new buyers (Baltzan, Detlor, et al, 2012). These strategies are as follows:

Service, menu and marketing can be modified in accordance to the needs and wants of the existing, as well as, new customers.

Marketing strategies should be developed in order to be able to target the younger generations, as the customer population has started to get aged and the younger generations have been ignored in past marketing activities.

A website should be created in order to inform the each and every aspect related to us and our activities.

Wi-Fi services should be available to connect for any and all the customers visiting the deli.

A program for loyalty should be started, using membership cards and the holders of these cards should be provided with free of cost items by the Deli. This will help in building relationships with the customer, as they can then be send coupons, called by their names, etc.

Customers can be asked for a feedback by giving them reward in return, such as, discount coupons on their next visit to the Deli (Baltzan, Detlor, et al, 2012).

Supplier Power

The power that the suppliers possess to determine the prices of the products they are offering is known as the supplier power. Under this case, it can be said that the power of the suppliers is high. Food prices have continued to rise in food related retail business. However, it can be said that an increase in the prices for our future, as well as, the existing customers would not be ideal. This is said because of the current objective to regain the position we had in the food market and in order to expand our operations of the business. Following strategies can be considered in an attempt to do so:

Maintaining relationship with the local suppliers.

MIS can be used in order to find an alternate source of supplies of food items.

Menu can be revised along with the prices, in order to offer products at prices that are desirable by the customers (Baltzan, Detlor, et al, 2012).

Threat of Substitute Products and Services

The presence of many alternate products and services would increase the threat, whereas, the opposite would reduce it. Competitor might be able to steal the ...