The Broadway Cafe' Cis 500 Essay

2450 words - 10 pages

Final Project 1

Final Project

The Broadway Cafe' Part I and II

CIS 500

Strayer University

Elizabeth Bethel

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Final Project 3

PART I. COMPETITIVE ADVANTAGE

Porter's Five Forces is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry segment (Baltzan & Phillips, 2009). The five forces if used properly can help us to analyze the depth of competition to the profitability and attractiveness of an industry. Porter uses a Five Forces Model to show the relationship between the different competitive forces. By performing this analysis I hope to gain a clear understanding of how power lies in the business that I want to manage, so that I can take clear advantage of my strengths and improve my weaknesses to prevent from taking the wrong steps when looking at the opportunities and threats I will face.
The Broadway Cafe' has been in business since 1952 and has had no competitors so therefore buyer power is low. There may be a change in buyer power because Starbucks is opening a store a few blocks away. Loyalty programs reward customers based on the amount of business they do with a particular organization (Baltzan & Phillips, 2009). An advantage would be for the Cafe to implement a customer loyalty member program to keep existing customers and to attract new ones. To influence buyer power the Broadway Cafe' cold also survey the customers and ask them the extent to which they believe each activity adds value to the product or service (Baltzan & Phillips, 2009). Another way to keep buyer power low is to target many and different buyers so that no one buyer has any particular influence on product or price. Buyer power will also remain low if the products are not standardized and the buyer cannot easily switch to another product (Bing. 2010).

Final Project 4

At the Broadway Cafe' supplier power should definitely be low because as a buyer the organization can create a competitive advantage by locating alternative supply sources. Information technology enabled business-to-business (B2B) marketplaces can help (Baltzan & Phillips 2009). To bring the cafe into the twentieth century it should definitely take advantage of the business-to-business marketplace by making sure to equip the cafe' with computers to provide the business with accurate record keeping and storing information. Computers will also help the business because there are many suppliers on the internet that the cafe' can buy supplies from. Since there are so many suppliers now available at the click of a mouse the Broadway Cafe can use substitutes, research suppliers with the lowest costs of switching to other products, convenient delivery, and...

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