The Broadway Café
Business Driven Information Systems
Part 1: Porter’s Five-Force Analysis
Broadway Cafe’ since its inception in the neighborhood in 1952 has outgrown its place in terms of antiquated ways of doing business. It is in dire need of a face life and an extreme makeover, to say the least.
Broadway Cafe is in a unique position to receive its makeover in the City of downtown Conway, and it appears that it will catch up to the 21st century. There is a downtown revitalization project that is in its development stage and the Conway Chamber of Commerce has invited all businesses to attend its monthly meeting to address areas of concerns, needs and/or suggestions. We will be attending.
Therefore, I have assembled a team of individuals to provide me with their input of taking Broadway Cafe on a new level of interest. Our local Chamber has always been helpful and with the City of Conway downtown revitalization project under way, Broadway Café is certainly on its way.
The first phase will include an analysis of what the Café needs to do strategically in order to keep its present customers, while creating innovative ways to attract new customers. Naturally, we will be competitive with our pricing, but our primary focus is the quality of our service and products that matter to our customers. In moving toward our “extreme makeover”, we will have a few suggestion boxes in place at each table to determine what our customers would like to see in our makeover and what really matters to them. After assessing their request, needs and wants, we will position a product line based on its competitive strengths, which we believe will be understood and valued by our customers.
Second, Broadway Café has to utilize technology to enhance and place an ease among customers and employees in terming of conducting business. Therefore, we will begin with utilizing Porter Five Forces Model to evaluate the business.
Business is a business and not a hobby, if you are in it to survive and grow. Therefore, a business owner must know its competitors next door as well as from a distance. By strategizing its makeover, certain elements play a vital role in its success and must be implemented in an effective and efficient manner.
Broadway Café must incorporate a program to its loyal customers by creating ideas to continue having their loyalty. With loyalty, there is trust, and with trust you having staying power. Broadway could give its present customers a loyalty card that is stamped on each visit which will entitle them to various rewards (i.e. free lunch on any given day of the week, birthdays, bring a guest and receive 50% off, etc).
By enhancing and rewarding present customers, business will grow exponentially, because any new idea of gaining an advantage of other similar businesses will travel fast in a small quaint downtown filled with other small businesses. IT can also use the advantage of inviting different suppliers of certain products to bid for new items in order to compete with other suppliers.
There will not be many threats of substitute products or services due to the Café being one of only three in the general area. As a footnote, Broadway Café is the only one that has been stable.
Some employees have also raised concerns about rumors that are flying that Starbucks will be entering the downtown area. To create a barrier against Starbucks, Broadway café will put into place several barriers in order to compete. The very first barrier will be the enhancement of offering similar products and services that Starbucks offer. Since Starbucks is limited on their menu items, Broadway Café has already created an advantage. Broadway will create a new internet café to compete with Starbucks, even if the rumors are not true. There will also be a focus of lowering Broadway’s prices as customers grow to ensure that any rivalry that wants to match or compete,...