PORTER'S FIVE FORCES

What Porter’s Michael model is?

It is a model that describes competitiveness within an industry, which allows developing strategies, based on five main forces.

 

RIVALRY AMONG COMPETITORS:

Rivalry within the competitors in our sector is high in the way that we introduce the industry where is already conquer by other competitors such us cocheros or other informal food selling, then we already lost the first move advantage. Thus clients can easily decide what kind of food they want to eat and also that as we are new on the business food the profits and in the general growth is going to be slow because all of the other businesses.

 

POTENTIAL ENTRY OF NEW COMPETITORS:

As was mentioned in the macroeconomic analysis, Colombian government is letting other industries in the same sector to entry and compete with all industries that have been for years, then many potential competitors are getting into the market in a strong way, because they decreased considerably the prices and keeping the quality, therefore industries like us need to think fast and do the proper strategies to be alive through time, however as we are new on the business we have to think is how to create an interesting for consumers to our industry.

 

POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS:

 

Burrito Sabanero will have to think how to deal with new competitors because food industry is very easy to copy a product and improve it from the original product. Then in order to keep competitive by strategies Burrito Sabanero is going to achieve its main objective that is to satisfy and recognized by all people as well as being the first option in burrito.

 

BARGAINING POWER OF CUSTOMERS:

 

In this part of porter’s model is very small in terms of our industry, because there are few places where people can find food on the street with quality and knowing that all food is well preserved, therefore customers will not change easily to the competitors as long as the product and the service is well given to people.

 

BARGAINING POWER OF SUPPLIERS:

 

Nowadays is easy for food industry to find suppliers, but the main concern is that as we want to achieve our vision of what we want to become that is to be recognized and preferred over other competitors we have to find an excellent provider.