suMOSAM
I. INTRODUCTION
SumoSam Foods, Inc. (SFI), is a young company showcasing a group of hip, cosmopolitan and up-and-coming restaurants. It was introduced as flagship restaurant and was successfully captured the trending fusion cuisine popular with the AB market in Shangri-La Mall in December 2005. The company already opened its second branch a year after its operation at the posh Rockwell mall following the phenomenal success of its first venture.
SFI has become the restaurant industry’s new darling with at least four of its restaurants enjoying leadership status in their respective locations in less than four years of operation. With this, opportunities to open new branches in major malls have been unfolding. Major mall operators seek out the group to open new stores with innovative concepts.
II. PROBLEM STATEMENT
III. ANALYSIS
A. PORTER’S FIVE FORCES
THREAT OF NEW ENTRANTS – LOW
High capital investments are one of the factors for barrier to new entry primarily because prospective owners need to consider lease in a huge lot and build a fully furnished restaurant either in mall or places that are very accessible to people. By doing this it primarily required huge amount of money or investment. Hiring and employment are also needed for the business to flourish.
Large established companies with strong brand identities make it more difficult to enter and succeed in the marketplace. The newcomers to the Philippine market are faced with price competition from existing chain restaurants. Also, customers are prone to prone change their preferences. That is why it is necessary for a business to generate more sales for faster return of investment. It is important that they fully satisfy their customers by giving service excellence and high quality of food that gives value for money so that they will be able to gain loyalty from them.
BARGAINING POWER OF BUYERS - HIGH
Consumers do have some bargaining power
SumoSam Foods, Inc. (SFI), is a young company showcasing a group of hip, cosmopolitan and up-and-coming restaurants. It was introduced as flagship restaurant and was successfully captured the trending fusion cuisine popular with the AB market in Shangri-La Mall in December 2005. The company already opened its second branch a year after its operation at the posh Rockwell mall following the phenomenal success of its first venture.
SFI has become the restaurant industry’s new darling with at least four of its restaurants enjoying leadership status in their respective locations in less than four years of operation. With this, opportunities to open new branches in major malls have been unfolding. Major mall operators seek out the group to open new stores with innovative concepts.
II. PROBLEM STATEMENT
III. ANALYSIS
A. PORTER’S FIVE FORCES
THREAT OF NEW ENTRANTS – LOW
High capital investments are one of the factors for barrier to new entry primarily because prospective owners need to consider lease in a huge lot and build a fully furnished restaurant either in mall or places that are very accessible to people. By doing this it primarily required huge amount of money or investment. Hiring and employment are also needed for the business to flourish.
Large established companies with strong brand identities make it more difficult to enter and succeed in the marketplace. The newcomers to the Philippine market are faced with price competition from existing chain restaurants. Also, customers are prone to prone change their preferences. That is why it is necessary for a business to generate more sales for faster return of investment. It is important that they fully satisfy their customers by giving service excellence and high quality of food that gives value for money so that they will be able to gain loyalty from them.
BARGAINING POWER OF BUYERS - HIGH
Consumers do have some bargaining power