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Porters five forces

Porter’s five forces:

Supplier power: Our suppliers are many. Because all the provisions required for preparing the food to be packed in lunch boxes are household provisions, they are available in plenty in all the supermarkets and other provision stores at reasonable prices. There is no uniqueness in any of the inputs we use for our products. Since the suppliers are plenty in number, there is absolutely no chance of any supplier exercising control over us. In fact there is a severe competition among the suppliers themselves, which works to our advantage and we enjoy a
buyer power with them. There is also absolutely no chance of the suppliers hiking the input prices suddenly and without our knowledge since the market is controlled by any monopoly and is fairly widespread and competitive.

Buyer Power: Our prospective buyers are mainly from the middle class and student community and are fairly widespread. There is no likelihood of any monopolistic buyer cornering our products. Since ours is the first business venture of this type of service and product, the opportunity for the buyers to shift to other competitors for this service does not arise.  This does not mean that we will not be caring for our customers (Jacksack, 1998). While we take all precautions for keeping them satisfied, the possibility of their shifting to a competitor for flimsy reasons in remote. At the same time, we take care to maintain very good service and highly cordial relations with our customers.

Competitive rivalry: We are the first in this type of business and service. So for the time being there are no other competitors with the same business model. However it does not mean that we have a monopoly over the business. Our product, lunch, is available in every restaurant. Anybody who is dissatisfied with our serve can very conveniently switch to restaurants. So, there is need for us to be extremely cautious as far as customer satisfaction is concerned. It is quite likely that, in course of time, if the business concept succeeds there will be many competitors entering the field, particularly from the restaurant sector. Keeping in view this potent future competition, we would like to build our brand value before the competition hots up and new entrants enter the business.

Threat of Substitution: As far as our business output is concerned, it is a combination of product and the service. The product is food and is easily substitutable; the service of delivering the packed lunch box at door step is not substitutable for the time-being. But the situation may not prevail like this for long when new entrants make an entry into the business.

Threat of New Entry: Our business is such that neither there is any technology that is involved, which is difficult to be adopted, nor there are any barriers which can prevent new entrants from entering the business. We are quite prepared to face the new entrants. The new entrants are likely to make their debut once the concept is a success. But by that time, we will be firmly entrenched in the market (Rhodes & Westwood, 2008). We are confident that new entrants though they may pose stiff competition, may not be making a significant dent in our market share.

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