Yummy Subs Cafe
Lourdes Gutiérrez
MANA 716
Prof. Bernardo Gil
Ana G. Méndez University System, Metro Orlando Campus
Yummy Subs Café – Case Study In 1980 Michael Porter, professor of Harvard University developed the model of 5 competitive forces. This model became a tool for analyzing an organization industry structure for developing a strategy. The model is based on that the corporate strategy should meet the organization opportunities and threats present in the organizations external environment. These 5 forces can be adapted to every industry in every market and will define the amount of competition, profitability and attractiveness of an industry.
The Yummy Subs Café was established in 1953 offering different kinds of specialized coffees, teas, homemade soups, sandwiches, salads and full time bakery. An analysis of Porter’s Five Forces follows. • Bargaining power of buyers – How strong is the position of buyers, how much power do they have to drive prices down and how easy will be for them to change products or services. Yummy’s customers have plenty of options and will be very easy for them to change to another bakery style business. For example, specialized coffee, sandwiches, salads and bakery products are offered at places like Panera Bread, Jason Deli’s, Starbucks and Barnies. The proposed strategy to lessen impact of clients leaving will be to ensure prices and quality is similar to competition. • Bargaining power of suppliers – How strong is the position of suppliers, are there many or just a few suppliers. Suppliers may have the power to drive prices up if the product they offer is unique and depending how easy is to change from one supplier to another. If there are only a few suppliers then they may have more control on prices. For example, the main ingredient needed to prepare bakery products is flour and produce for salad and