The Broadway Cafe Case Study Example | Topics and Well Written Essays - 1750 words

The Broadway coffee shop - Case Study ExampleOne of the major significances of Porters five forces model is its competency to predict even the future challenges and opportunities of an organization. Porters 5 Forces tool is a causeful tool for understanding where function lies in a barter situation because it helps you understand both the potential of your current competitive position, and the strength of a position youre considering moving into (Porters volt Forces, 2011) According to Michael Porter, Threat of new entrants, bargaining power of supplier, bargaining power of buyers, threats of substitute products, industry rivalry or competition etc are the five forces which shapes the make up and future of an organization. (Porters Five Forces Model, 2009). The figure given below illustrates the Porters five forces theory. (Porters Five Forces Model, 2009) In the given movement study, Broadway cafe is struggling to survive in the current business climate, even though they ha d good business and reputation in the past. This is entirely because of the lack of modernizations undertaken in Broadway coffee shop based on the changing trends in business and management. Broadway cafe is trying to operate their business with their elder management and business methods which were big successes in the past. However, much(prenominal) older methods may not be prospered at present because of the changing needs and life styles of the current customers. This paper analyses the given Broadway Cafe case study based on Porters five forces model and provide some suggestions for the make process of Broadway Cafe for the twenty first century. Analysis of Broadway Cafe with respect to Porters Five Forces Model According to Porter, substitute products are one of the major challenges for a product manufacturer or service provider. In his opinion, substitutes are those products which can offer a real alternative to a feature product. The Broadway cafe offers many different kinds of specialized coffees, teas, a full service bakery, and homemade sandwiches, soups, salads etc. entirely these products offered by Broadway cafe had a unique taste and identity in the food market earlier. However, the accession of new recipes and other food items caused big problems to Broadway cafe in recent times. The traditional food habits changed a lot and instead of the conventional restaurant or cafe items, fast foods conquered the food markets at present. preferably of nutritious great deal started to attract towards food items which offered greater tastes and convenience in usage. For example, the traditional food items identical the Broadways homemade sandwiches, soups, salads etc have given way for fast food items from KFC, McDonalds etc because of the greater tastes offered by these items. Threat of new entrants is the second factor which may affect the business of an organization according to Porter. globalisation and Liberalization have brought many new b usiness groups to America and a substantial number of such new entrants are the restaurant groups from different countries. America is a country in which different people from different parts of the world are working and staying together. This diverse population may have their get preferences for food items and hence new food services companies find immense opportunities in America at present. It is easy for a foreign company to establish businesses in America at present because of the liberalized norms for establishing a business. Under such circumstances, Broadway cafe cannot survive in the market with the help of their traditional