Carrying out a thorough industry research and analysis is a vital criterion of a business. This stands true for Gloria Café as well. We have applied the porter’s five forces model in order to find out and assess the external business environment well. As part of this model, we have analyzed 5 important areas; such as, threats of new entrants, supplier’s bargaining power, buyer’s bargaining power, threats posed by substitute products and the level of competition faced from the existing competitors. Although the current threats of new entrants is quite low it may increase dramatically, if the investors see a lot of potential within the Eugene area.
In addition, the lack of sufficient competitors means that Gloria Café enjoys a significant level of monopoly in that area. As a result of this, their bargaining power is significantly more than that of their suppliers or can be said to be quite stable. If the buyer’s bargaining power is assessed, then it is not that strong for Gloria café. This is mainly because; people have a lot of other options to choose from easily. Apart from this, there minimal effort in advertising has put the buyers in an even stronger position.
One of the major threats comes from products such as fast-food offered by the competitors. In order to fend off such competition, they may consider promoting their products even more. Competition from existing rivals is also quite severe due to the presence of other larger lunch and breakfast restaurants in the region.
The implementation of the marketing strategy is analyzed in 3 ways; campaigns or programs meant to increase the effective of the marketing plan, action or tactics to ensure that the campaigns and programs are implemented properly and the milestones for the short term and long-term strategies that are to be implemented by them.
