Competitive Strategy
Avellino's uses a focus differentiation strategy. This strategy describes Avellino's position best because they are not only an Italian restaurant with a full menu, or a pizzeria to stop in for a quick slice but also a sports bar. This allows their sit down guests to order a wider variety of alcoholic beverages then most other restaurants. The bar's patrons are also known to order full meals to their seats at the bar, allowing them to keep a close eye on the big screen.
Avellino's successfully differentiated themselves from the rest of the industry by combining the experience of both a restaurant and sports bar, still allowing their customers to commit to one or the other. This also increases their potential clients.
Porter's Five Forces
Bargaining power of suppliers
Avellino's suppliers have low bargaining power because of the number of suppliers who can sell to Avellino's is high and not differentiated. The supplies they require are very basic, such as flour or cheese. Thus the switching costs from one supplier to another is very insignificant.
Threat of substitutions
Avellinos has a high threat of substitutions. Although every one has to eat, there are many substitutes to their specific business. Avellino's is mainly in the market of Italian food & pizza, substitutes for these include Spanish food, Greek food, Chinese food, Indian food, etc. Even various types of fast foods or sandwiches can be seen as a substitute. Another alternative for Avellino's consumers would be simply to not eat out, to stay at home & find some other means of entertainment.
Bargaining power of buyers
The bargaining power of buyers is low due to the fact that there is a high volume of pizzeria/restaurant patrons. Usually a single patron wouldn't be purchasing enough product to inflect any influence in the operations of that establishment.
Threat of new entrants
Threat of new entrants is high due to the fact that barriers of entry in the restaurant/pizzeria are not significant.
Rivalry
When classifying Avellino's specifically in the Italian food industry they are subject to much rivalry from competitors. However if you were to place them in a hybrid industry of the two, the level of rivalry they face is significantly lower.
Value Chain
A value chain is a network of value-creating activities, containing both primary & support activities. Avellino's value as a restaurant is created through obtaining the freshest ingredients, to produce great food, which ultimately arrives to their customers; whether it be in person or through delivery. In doing so Avellino's business grows through word of mouth in the immediate community, as well as through advertisements in the local papers. Avellino's aims to please its customers through product and service to gain their loyalty.
Business Process
Shown above is a chart of Avellino's most common structured business process. Its a step by step diagram of activities to complete a customers order, whether it be over the phone or in person. This process is completed repeatedly throughout the day and is seen as the most basic process in order fulfillment at Avellino's. Each employee specializes in their own field, however the counter employee can easily be substituted by most other employees.
Step 1: Initial customer interaction with Avellino's employee.
Step 2: Employee takes the order specifics to best cater to the consumer's needs.
Step 3: Same employee sends the order to the kitchen or pizza guy, using the POS system each station receives a printout receipt.
Step 4: Order is packaged or presented on a dish
Step 5: Order is brought to the customer at either the counter, a table or delivered to their address.
No comments:
Post a Comment