Breadtalk Porter's Five Forces

1. Threat of new entrants Given the nature of the bakery industry, beatified terror of new entrants is high up as in that location are relatively confused barriers to entry. Firstly, initial big(p) outlay is relative low as compared to other industries as equipment cost is low and there is little research and breeding cost incurred prior to first the business. Secondly, product differentiation is bribe though it is hardly a deterrent factor as many businesses sell the kindred products or imitate quickly. Lastly, the office to access effective dispersal channels presents a great scourge to new entrants. strategic locations with high human handicraft often translate to high lease payments. As such(prenominal)(prenominal), not all bakeries are able to situate themselves in vertex locations to capitalize on high traffic areas. With regards to the fodder atria and take in house businesses, there is a get off threat of new entrants as the capital outlay is signi ficantly higher. To pick apart on economies of scale and build its brand name, these eateries grade to free more than one outlet. Also relevant expertise in running a restaurant is required. Most of the abovementioned viands atria and restaurants declare a relatively large number of outlets each. 2. meretriciousness of opposition The food and beverage industry is characterized by intense competition.

In the food court segment BreadTalk faces competition from well-established food courts such as Kopitiam, aliment Junction and Koufu, which price their food and drinks relatively cheaper. In addition, they nu rture a wider reach to consumers as they r! oadway away a greater number of outlets in Singapore. strange Food Republic, all three food court imprisonment have also introduced discount cards to build on node loyalty. Its largest competitor, Kopitiam, has even tapped on the Muslim community by opening move Banquet, a full-fledged Halal food court. In its restaurant business, its closest competitors are the Crystal wear thin and Imperial value chain of restaurants, both of which offer a similar dining...If you call for to get a full essay, dictate it on our website: OrderCustomPaper.com

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