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Porters THEORIES WITHIN THE AUSTRALIAN COFFEE SHOP INDUSTRY1Executive Summary 12 Porters Five Forces Model 221 Threat of new entrants 322 Bargaining Power of Suppliers 323 Bargaining Power of Buyers 324 Intensity of Rivalry 425 Threat of Substitutes 43 Porters Value Chain 531 Inbound Logistic and Procurement 632 Operations and Technology 633 MarketingSales and HRM 64 Porters Three Generic Strategies 75 Recommendations 851 Low entry barriers 8511 Building a Strong Brand Name 8512 Provide service the public expect 9513 Build relationship with supplier 952 Bargaining Power of Buyers 9 521 Make switching costs higher 953 Lack of industry experience 106 Bibliography 11Fig 21 Analyses of coffee industry using Porters Five Forces Model 2Fig 31Porters Value Chain 5Fig 41Porters Generic Strategies Model 7The purpose of this report is to investigate and evaluate the Coffee Shop Industry and one of it key competitors Gosh a subsidiary of Brazin LtdThe evaluation of the industry is based on Michael Porters Five Forces Model which suggests that from the perspective of existing members of the industry the market is unattractive Porters other contributions the value chain and his three generic strategies were used in an analysis of the individual company GoshFrom these investigations recommendations have been made on how Gosh can improve its overall profitability such as developing their brand name and overall customer loyalty It must be realised this reports suffered from the limitations of a word count and lack of information about Gosh With this in mind further investigations need to be made before any of the recommendations are considered for implementationThis model devised by Michael Porter proposes that business-level strategies are the result of five competitive forces in the companys environment Porter 1980 These forces as seen in the diagram below include potential new entrants bargaining power of buyers bargaining power of suppliers threat of substitute products and rivalry among competitorsIn order for the model to achieve
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