Question

Please create by filling in the blanks a Five Forces Assessment on Cracker Barrel Old Country Store

         

Rivalry                                                                                                                                     

1
2
3
4

Threat of Entry

1
2
3

Substitutes

1
2

Supplier Power

1
2

Buyer Power

1
2

Answer 1

1. Rivalry

If the competition among an industry's current players is intense, it will drive down rates and diminish the industry's general profitability. In a very competitive restaurant sector, Cracker Barrel Old Country Store, Inc. runs. This rivalry is taking toll on the organization's general long-term profitability.

Cracker Barrel Old Country Store, Inc. is able to deal with Intense Rivalry among the restaurant industry's existing competitors. By constructing a sustainable differentiation By constructing scale so that it can compete better Working with rivals to boost the size of the market rather than compete for the small market.

2. Threat of Entry

New restaurant entrants bring innovation, fresh methods of doing stuff, and put pressure on Cracker Barrel Old Country Store, Inc. through reduced pricing strategy, cost reduction, and customer value proposals. To safeguard its competitive advantage, Cracker Barrel Old Country Store, Inc. must handle all these difficulties and create efficient obstacles.

By innovating fresh products and services, Cracker Barrel Old Country Store, Inc. can address the threats of fresh entrants. New products not only bring fresh clients to the fold, but also provide an opportunity for ancient clients to purchase products from Cracker Barrel Old Country Store, Inc.
By constructing economies of scale so the fixed cost per unit can be lowered.
Capacity building and research and development expenditure. New entrants are less likely to join a vibrant sector where established players like Cracker Barrel Old Country Store, Inc. continue to frequently define the norms. It substantially decreases the window of exceptional revenues for the new companies and thus discourages fresh players

3. Substitutes

If a fresh product or service meets the requirements of a comparable client in distinct ways, the profitability of the sector will suffer. Services such as Dropbox and Google Drive, for instance, replace hardware disks for storage. A replacement product or service is highly threatened if it provides a value proposition that is distinctly distinct from the industry's current products.
Cracker Barrel Old Country Store, Inc. can address the Treatment of Substitute Products / Services by focusing on service rather than merely product-oriented.
By knowing the customer's core need instead of what the client purchases.
By raising the expense to the clients of switching.

4. Supplier Power

Most of all businesses purchase their raw material from countless providers in the restaurants sector. The margins Cracker Barrel Old Country Store, Inc. can be earned on the market by suppliers in the dominant place. Powerful service providers use their bargaining authority to obtain greater rates from restaurant companies. The general effect of greater supplier bargaining power is that it decreases Restaurants ' general profitability.

By constructing an effective supply chain with various providers, Cracker Barrel Old Country Store, Inc. can address suppliers ' bargaining power.
By experimenting with product models using various materials in such a way that if prices rise from one raw material then the business can move to another.
Developing committed vendors that are dependent on the company. One of the lessons that Cracker Barrel Old Country Store, Inc. can learn from Wal-Mart and Nike is how these businesses created third-party manufacturers that rely exclusively on them to create a situation where these third-party manufacturers have considerably less bargaining power compared to Wal-Mart and Nike.

Buyer Power

Buyers are often a lot of demand. They want to purchase the best accessible offers by paying as much as possible the minimum cost. This put pressure on the long-term profitability of Cracker Barrel Old Country Store, Inc. Cracker Barrel Old Country Store, Inc. is the smaller and more influential the client base the greater the customer's bargaining power and the greater their capacity to seek growing discounts and offers.

Cracker Barrel Old Country Store, Inc. can deal with buyers ' bargaining power by constructing a big customer base. In two respects, this will be useful. It will decrease the buyers ' negotiating authority and provide the company with an chance to streamline its process of sales and manufacturing.
By innovative fresh products quickly. Customers often seek discounts and offers on existing products, so if Cracker Barrel Old Country Store, Inc. continues to develop fresh products, then buyers ' negotiating power may be limited.
New products will also reduce the defection of existing customers of Cracker Barrel Old Country Store, Inc. to its competitors.