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Abdul Mannan 15121010Safwan Mehmood 15121025Shuja Ahmad 15121003M. Hannan Sarwar 15221011

WAC of Bikanerwala: A ne er endin! "ue#$ $o deli!h$ %u#$omer

&1: Wha$ i# $he 'rofi$ 'o$en$ial of $hi# (ndu#$r)* +or an anal)#i# of 'o$en$ial, u#e $he

-or$er # +i e +or%e# anal)#i#

An#wer:

For the analysis of any industry Porters five forces is an effective tool which tells the industrys

dynamics and also tells current condition of the industry. Following are the five forces used in it.

1) Bargaining Power of Supplier 2) Bargaining Power of Buyer 3) hreat of su!stitutes") hreat of #ew $ntrants%) &ndustry 'ivalry

Bar!ainin! 'ower /f Su''lier:

Bargaining power of suppliers means that how much the suppliers can control prices( uality and

availa!ility of the product. &f the !uying power of supplier is high this means that they have high

control on price( uality and availa!ility of the material and if they have low !argaining power it

means that their control over price( uality and availa!ility of material will !e low.

&n restaurant industry !uying of supplier are usually low !ecause there are many suppliers in the

industry and they do not have much control over price( uality and availa!ility. &f they raise

prices the !uyer will switch towards other suppliers and this will lead towards losing customers.

*lso !uyers want uality product and they are willing to pay for uality so if there is any

compromise in uality the !uyer will switch. Same is the case with availa!ility of material as

!uyers want daily supply of materials without any interruption.

Bar!ainin! 'ower of Bu)er:

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Bargaining power of !uyer means that how much the !uyers can control prices and uality. &f

the !uying power of !uyer is high this means that they have high control on price and uality. &f

they have low !argaining power it means that their control over price and uality and will !e

low.

he !argaining power of Buyer in restaurant industry is high. Because the range of suppliers in

this industry are high and !uyer can !uy from any supplier that gives him uality product with a

good price deal. &n this industry the !uyers are willing to pay more !ut they are not

compromising the uality of the product. So if uality of material goes down the !uyer will sure

switch towards other uality products.

hrea$ of Sub#$i$u$e#

he threat of a su!stitute is the level of ris+ that a company faces from replacement !y its

su!stitutes. * su!stitute is a product that a customer can use instead of using other product. &t is

an important factor !ecause it affects company and industry profita!ility. * low threat from

su!stitutes means that there will !e less competition among the e,isting firms and there will !e

more potential to earn higher profits. * high threat of su!stitute results in high competition

among e,isting firms and less potential to earn higher products.

&n restaurant industry threat of su!stitutes is moderate. Because people now a days want more

specialty oriented !rands and they go to !rands that have a specific specialty. For e,ample if a

person want to eat a pi--a he will not go to any general restaurant !ut he will prefer to go to

Pi--a ut( /ominos etc. and if he want to eat !urgers he will prefer 0F ( c/onalds.

hrea$ of ew n$ran$#

hreat of new entrants means whether or not a new entrant can easily penetrate in the mar+et or

not. &f there is a higher threat of new entrants( this means that there are low !arriers to entry and

there is high possi!ility that the industry profit potential will decrease as a whole. his is !ecause

more competitors will fight for the same amount of !usiness.

hreat of new entrants in restaurants industry is low !ecause people are tend to !uy from

different chains which are renown in mar+et and have multiple !ranches all over the country. So

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setting up a new !usiness in such a competition re uires heavy capital and long time to !uild

trust.

(ndu#$r) i alr)

he factor of competitive rivalry has significant impact on the competitive environment a

company operates in !ecause the degree of competitiveness has direct impact on the potential for

profit that a company can e,pect. * highly competitive mar+et may end up !eing detrimental to

all companies involved( with lower profit margins and less a!ility to decide price points.

&ndustry rivalry in restaurant industry is high !ecause people have more choice and it is a leisure

product also and people not only want good taste !ut a good e,perience. n this !ase many

restaurants are giving their facility a theme to differentiate their product from other and cater

more customer !y providing a uni ue e,perience.

&2: A##e## $he Ser i%e# of Bikaner ala ba#ed on S 4& A6 dimen#ion#

An#wer:

an!ible#: Bi+anervala has a !eautiful layout of !uilding with eye catching furniture which

gives customer a new e,perience and calm facility. hey also had well developed sound system

which plays a soft music with !eautiful dim lights. he walls of restaurants were designed and

were soothing to the eye of the customer.

eliabili$): he staff at Bi+anervala were very corporative and helpful. he pro!lem was that in

rush time customer had to wait to place order and get the order. But this waiting was covered !y

the generosity of staff and their helpful nature.

e#'on#i ene##: he setup of the restaurant was in such a way that it helps the customer. *lso if

any customer felt any discomfort the staff was there to help them out and solve their pro!lems

right away.

A##uran%e: Bi+anervala was a customer oriented firm that gave value to the customer. hey

trained their employees to give respect to customers and help out them in any of uery.

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m'a$h): hey have an e,cellent feed!ac+ system. he feed!ac+ of the customer was one of

the important factor for them. &f there is an issue with any customer and he reported to restaurant

it is their policy to resolve that issue within 2" hours.

&3: Who are $he %om'e$i$or# of Bikaner ala* How )ou "ualified $he %om'e$i$or#*+ur$hermore, wha$ i# $he %om'e$i$i e #$ra$e!) of $he brand 7 +o%u#, Co#$ 6eader#hi', or

8ifferen$ia$ion*

An#wer: he competitors of Bi+anervala are all the restaurants that serve good uality food as it

is also their own claim which they made. his is an intense competition which they have selected

and they are competing well in the industry. hey are using cost leadership strategy as they are

serving uality food at !est price deal in the mar+et which attracted many customers as customer

want uality product and they are willing to pay more price for that particular uality. But whenthey find !est uality food with !est low price they !ecome fre uent !uyer of the Bi+anervala.

&9 How i# $he H #)#$em in 'la%e a$ Bikaner ala* Are $here few weakne##e#

if )e#;, kindl) offer )our #u!!e#$ion# $o im'ro e $he H #)#$em.

An#wer:

hey have a well development ' department which fulfills their functions that are assigned to

them. hey having training department also in ' which trains employees to fulfill daily tas+re uirements of the restaurant. hey give incentives and !onuses to employees so that they

perform their tas+s well and with motivation. 0ey responsi!ility areas are specified for each

employee from top management to apprentices. hree parameters of cost( delivery and uality

decide

How i# $he &S #e!men$ !rowin!* Wha$ %an Bikaner ala do $o !rab more of

$he #e!men$ from o$her 'la)er#* Wha$ do )ou re%ommend for Bikaner ala

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this is a !ig potential mar+et which Bi+anervala. hey can ma+e drive thru windows and small

ta+e away windows in !ig shopping malls which will automatically attract the customers who

want uic+ service food and !y this it will cater a huge mar+et and this will result in great mar+et

share.