Question

Scenario:

As a business investment, you are planning to open several donut shops throughout the city of Riyadh, with potential futu.re expansion plans in other city areas in Saudi Arabia including Jeddah, Dammam, Khobar and Al Hofuf. Your initial plan will offer a wide variety of donuts and assorted beverages (coffee, tea, juices, etc.) Currently, the only competitors you will face in the above mentioned locations are two global organizations, with no local competitors in the market for those locations. Realizing that the current customer market may well support a local business that can successfully compete in those targeted cities, you begin to build a business plan.

The first step in the business strategy plan is to conduct an analysis using the principles of Porters Five Forces Model, while applying each component to determine the strategic impact of each element:

               Porter’s 5 Forces Model

1. Rivalry among direct competitors (existing donut shops, define and discuss)
2. Risk of market entry of new competitors (new donut shops attempting to enter your market)
3. Risk of market entry of substitute products (different products, similar functionality)
4. Bargaining power of suppliers (who you will buy your raw materials from)
5. Bargaining power of buyers (your customers who you will target to buy your product)

Questions:

Discuss and summarize a plan to address the following concerns:

Consider each of these principles as they relate to your proposed business. Who are your direct competitors and how can you compete against them? (use Porter’s Grand Competitive model to define your strategy)                                                         

Answer 1

Answer:-

• Donut

A doughnut or donut (the last spelling frequently found in American English) is a sort of seared batter sugary treat or sweet food. The doughnut is mainstream in numerous nations and is set up in different structures as a sweet bite that can be natively constructed or bought in pastry kitchens, grocery stores, food slows down, and diversified claim to fame sellers.

Doughnuts are normally pan fried from a flour mixture, and ordinarily either ring-formed or various shapes without a gap, and regularly filled, yet can likewise be ball-molded ("doughnut openings"). Different kinds of players can likewise be utilized, and different toppings and flavorings are utilized for various sorts, for example, sugar, chocolate, or maple coating. Doughnuts may likewise incorporate water, raising, eggs, milk, sugar, oil, shortening, and regular or fake flavors

• The substitute item in Gulf Countries are chicken things just as broiled bread shop items, which individuals are regularly expend more everyday.

• Crude materials can be bought from various nations close by Saudi Arabia just as neighborhood individuals. regularly organizations are bringing in crude material from diffrent nations, for example, India,China,Indonesia,Pakistan and so on...

• The customers wherein organization focusing to the adolescent just as senior individuals. so organization would get more piece of the overall industry.

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