November 6, 2012
The Hometown Deli (Stage 1)
“The Hometown Deli was established by my grandfather in 1952 in my hometown. It offers many different kinds of specialized coffees, teas, a full service bakery, homemade soups, sandwiches, and salads. The Deli has been a local hotspot for many years and has served as a community gathering place” (The Hometown Deli Case Study). It has been five years since my grandfather retired from the hometown deli. The deli has been going downhill ever since my grandfather retired. When my grandfather opened up the store he did not use any type of technology everything was done by hand. There is no type of technology in the deli and with the time period we are in now everything is done with technology, I believe I can turn this deli in to a successful store once again by bringing in technology and analyzing different assessments. I will be using the Porter’s Five Forces Model “which analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry” (Baltzan, 2008). There are five different stages in this model that will help me analyze where the company needs to make improvement. 1. The first stage is the buyer power “it is the ability of buyers to affect the price they must pay for an item” (Baltzan, 2008). The hometown deli will not have any problem with the buyer power because they already have low prices for the store, since everything is homemade they don’t have a lot of competition with other stores. The deli wants it customers and will give them the lowest price they can to keep their business growing. 2. The second stage is the supplier power “it consists of all parties involved, directly or indirectly, in obtaining raw materials or a product (Baltzan, 2008). The hometown deli wants its business to grow and still be the number one community gathering stop, with this being said they want everything to be...