On the five forces of enterprise competition from the closure of seafood shops

When I went out for a walk last night, I found that a seafood restaurant I used to go to was closed and transferred. We are not surprised, because his food is not fresh enough in the past two years, and we prefer to go to the old captain. After listening to the five-minute five-force model in the morning, I found that I can think from five angles and how to deal with it. I really feel completely exhausted by the other party. Haha, there is a weapon in hand again.

What is the five-force model?

1979, Michael Porter, who was only 32 years old, proposed that every enterprise was affected by five "competitive forces": direct competitors, customers, suppliers, potential new companies and substitute products.

Take the seafood restaurant as an example. First, direct competitors. Old Captain, Millennium Hotel and Great White Shark are all direct competitors, facing people who want to eat seafood. Make a simple analysis. How many people are there in this town? If you go to every restaurant on average, can you feed your restaurant? If not, you should be wary of being in a "perfect competition" or even "excessive competition" market.

At this time, three strategies can be considered: a. form a seafood catering alliance to force customers to make drainage actions; B. Provide better, cheaper or differentiated catering to enhance your personal competitive advantage; C study the withdrawal expenses, such as decoration expenses and deposit, and prepare to withdraw.

Second, customers.

As an important "competitive force", customers are mainly reflected in their bargaining power.

The administrative department of a big company will negotiate with several restaurants, and you can get a big discount by showing your work permit. If the company has a large number of employees, then "customers" have great bargaining power. If you are on his cooperation list, you will earn less money; If you are not on his cooperation list, you will earn less money.

At this time, you can unite several restaurants with obvious differences and set up a "SkyTeam Alliance" in the seafood industry to increase the bargaining power of restaurants. You can also issue an "alliance discount stored value card" to increase the cost of customer relocation.

Third, suppliers.

If your seafood is purchased from the largest "supplier" in Xiaoyangkou of the Yellow Sea and serves hundreds of customers at the same time, then you basically have no bargaining power. This is also the reason why APP development companies are vulnerable groups in front of Apple.

At this time, you can consider changing to a small supplier, so small that your business is important enough for him. Don't be a small customer of a big company, and don't buy or sell seafood from people who buy hairy crabs. For the former, you are not important; For the latter, seafood business is not important.

Fourth, potential new companies.

The business of the shopping mall opposite you is bleak, and it will be closed in the near future, and then it will be used for catering. At this time, you will face the "competitiveness" of "potential new companies".

You should find ways to improve their entry threshold, which is a barrier to your "seafood industry". For example, if you join other restaurants to reduce prices strategically, it will make the latecomers unprofitable; You can issue stored-value cards and coupons as soon as possible, lock in the income in the next 2-3 years, and let potential entrants retreat.

Fifth, substitute products.

The alternative product is, if you don't eat your seafood, or customers don't come to your store, what can customers eat?

Your most typical substitute product is take-away service. Those low-priced restaurants in the alley have taken away a lot of your customers; Convenience stores also have lunch boxes and microwave ovens, as well as those "slimming milkshakes, fruit and vegetable juices, and grain-piercing courses". They are very popular among white-collar workers, and the overall market size of catering will shrink, just as digital cameras as a substitute product almost killed the entire film industry.

then what As soon as possible, we will launch "little seafood bibimbap", "little seafood fried dumplings", "little seafood noodles" and "little seafood jiaozi", and then cooperate with various take-away platforms. Or launch a "Better Fitness Partner than protein" package, and cooperate with fitness instructors in gyms or office buildings, so that fitness experts who dare not eat sugar, fat and sweat can bravely eat seafood.

When we understand that the competitors of seafood restaurants are not only those seafood restaurants, and use the "five-force model" for systematic analysis, even a seafood restaurant can draw many effective "competitive strategies" and gain advantages.

This model is also used to analyze peace in China, which is consistent with the concept of competition mentioned by Luo Pang in his speech Friends of Time. The last alternative product is the most unpredictable and worrying.

Let me analyze my personal five-force model when I have time.