Question

In: Operations Management

You are a corporate catering service operating in downtown Vancouver. An American competitor moves into town....

You are a corporate catering service operating in downtown Vancouver. An American competitor moves into town. How might this change impact your budgets? Or would it?

Solutions

Expert Solution

Would do a SWOT analysis to understand my Competiveness

Strength

High Barriers to Entry
Highly Experienced Owner-Operator
Limited competition in the Area
Very high gross margins
Ability to sell product online
Highly visible website
Limited start-up risk.

Opportunities

Continued expansion for online sales
Ability to develop additional stores
Acquisition of additional funds of capital
Affiliate relation with related vendors
Development of proprietary products.

Weaknesses

Competitors can offer similar product quickly
Limited start-up cost
High Transportation cost
Limited flexibility in pricing

Threats

Changes in regulation can impact the business
Products are already in major competitions
Insurance cost are continually increasing
Increases in price inputs can cause upward pricing

Based on the above swot analysis the budget impact would be as follows

To curb competitions price of the food items need to very competitive
Discounts and membership coupons to be issued to keep the loyal customer
Free bees and offers will put a pressure on the profits.

Even a renovation of the service approach would require to manage in stiff competition


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