Broadway Cafe Case Analysis

4.ANALYSIS

The analysis team conducted a detail survey and comes across the answers to the questions published under ISSUE title. As the café was still running in the old fashion way with no use of technology it was the main factor that affected the business and to conquer it, upgrading/syncing business method of operating with new information systems is necessary. Which will benefit business to bring in more customers, attract new generations customers and help management to take the best strategic decisions.

4.1 Porter's Analysis :

Broadway Cafe needs to overcome number of hurdles to meet its required goals:

Broadway cafe has high Buyer Power. [The cafe is located on Fulton Street in downtown Brooklyn which is terrific location and has

It can purchase the required raw material from wide variety of the suppliers that comes under their budget with quality effective product. "With almost every single site listed in the first ten pages of results offering online ordering or 1-800 numbers to call in orders"[suggested].

The threat of substitute products or services is high because buyer power is high, customer can find wide variety of restaurants that provide different meals. In any market substitution threat is always common. The only way out is that café should provide particularly unique dish, produced with a unique recipe that no other restaurant/cafe has access to.

New entrants also have a low hurdle to overcome as a result of low supplier power and high buyer power café has that concludes new entrant level of risk is high. However, there are some aspects like customer loyalty and established recipes that can not be purchased when opening new café as a competitor of Broadway Cafe. And moreover customers won't give up their regular dining habits and try out new meals from new cafes. Prices must be competitive so the café is affordable by people with low income too which will eventually lead to increase in sales and low