Porter’s five forces theory
Porter’s five forces theory can be used here to analyze the potential market opportunities of Wild Bean café. There are five vital forces which can determine the possibilities in the business situation of the restaurant.
Supplier power
It is very easy for any provider to drive up the prices of the things they supply. That is mainly driven by a fair number of suppliers of the uniqueness of the product they supply which is the proof of their strength and the control over the company (Competition, market structure and market power within the hotel-supplier sector in Antalya 2016). In the field of market opportunities, the power of the supplier plays a vital role in the case of Wild Bean café.
Buyer Power
Buyer’s power can mainly be decided by the strength of the buyer that how they are driving the prices down. If the supplier can drive the price up then, a buyer can drive it down with his/her power. Buyer power is a very crucial aspect in the field of market opportunities for Wild Bean café (Raff and Schmitt 2009).
Competitive Rivalry
Like any other business Wild Bean café also has the rivalries in the market. Market opportunities include the threat of competition as other cafes like the Wild Bean may try the same strategies to take over other cafes in the market ("Market study says Russian coatings market boasts solid growth rate, expansion opportunities" 2004).
Substitution Threat
In this part of the market opportunity, the customer may find a substitute of the things which is provided by Wild Bean café. For example, suppose Wild Bean café is providing a combo offer of a cheese sandwich and two cold coffees at $8 where customers find it cheaper while buying it individually from the market. This case of substitution can weaken the power of the café.
New Entry
The facts of new entries can be a threat to the existing business of the market. Suppose Wild Bean café has some economic scales in place, or it has protected its key technologies for financial purposes. Then the new competitors can enter the market easily to weaken the position of Wild Bean café. The key technologies should be used by Wild Bean café efficiently. Without the further protection of the key technologies Wild Bean café should be a bit open minded to use the technologies.
PESTEL analysis
The customer service initiative can directly or indirectly be indirectly being connected with the PESTEL analysis. If Wild Bean café wants to provide excellent service to the customer, it has to go through the six-part of this analysis such as political, economic, social, technological, environmental and legal.
Political
In the political part, Wild Bean café has to go through the rules and regulation of the government in the case of providing services to the customer. It concern about the way which can be followed by the Wild Bean Cafe. By maintaining the strategy, Wild Bean Cafe develop their food quality more and better.
Economical
Economical part is also a part to be watched as the café should be aware of the fact whether they are making any profit or not (Yüksel 2012). The acceptance of the society is also a matter of concern for the café. The cafe industry is very high as well as a growing market. There are several important leaders opposite the Wild Bean Cafe. They are competing with other to take more share from the market. That is the main economic factor, and it might be a threat to all industries.
Social
The social trends mainly introduced to concern about the health issues. Food like, coffee can also be a part of dangerous beverage. That's why people can always go for new and fresh juices. That may be tea or something. That the social analysis which must be concerned about the Wild Bean Cafe for maintaining healthy food products.
Technological
The technological fact is directly connected with the economic fact. Innovation in the technologies can lead the economic factor to the highest level of success. The Wild Bean Cafe need to develop new equipment and machines to beat the competitors. There were always high as well as increasing the variety of foods. To make some complicated food, the high standard technology was required.
Legal
The company of Wild Bean café must be done in a legal way. They have to satisfy the customers with all their efforts but obviously in a legal way.
Environmental Factors
Wild Bean Cafe need to some innovative measures regarding the environment. The cafe can develop their policies for recycling. Also, it is crucial for reducing waste and buildin g green.
References
Competition, market structure and market power within the hotel-supplier sector in Antalya.
Market study says Russian coatings market boasts solid growth rate, expansion opportunities. (2004).Pigment & Resin Technology, 33(3).
Raff, H. & Schmitt, N. (2009). Buyer power in international markets. Munich: CESifo.
Yüksel, I. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. IJBM,7(24).
