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Abdul Mannan

Safwan Mehmood
Shuja Ahmad
M. Hannan Sarwar

15121010
15121025
15121003
15221011

WAC of Bikanerwala: A never ending quest to delight customer
Q1: What is the profit potential of this Industry? For an analysis of potential, use the
Porter's Five Forces analysis
Answer:
For the analysis of any industry Porter’s five forces is an effective tool which tells the industry’s
dynamics and also tells current condition of the industry. Following are the five forces used in it.
1)
2)
3)
4)
5)

Bargaining Power of Supplier
Bargaining Power of Buyer
Threat of substitutes
Threat of New Entrants
Industry Rivalry

Bargaining power Of Supplier:
Bargaining power of suppliers means that how much the suppliers can control prices, quality and
availability of the product. If the buying power of supplier is high this means that they have high
control on price, quality and availability of the material and if they have low bargaining power it
means that their control over price, quality and availability of material will be low.
In restaurant industry buying of supplier are usually low because there are many suppliers in the
industry and they do not have much control over price, quality and availability. If they raise
prices the buyer will switch towards other suppliers and this will lead towards losing customers.
Also buyers want quality product and they are willing to pay for quality so if there is any
compromise in quality the buyer will switch. Same is the case with availability of material as
buyers want daily supply of materials without any interruption.
Bargaining power of Buyer:

In this industry the buyers are willing to pay more but they are not compromising the quality of the product. Domino’s etc. It is an important factor because it affects company and industry profitability. If the buying power of buyer is high this means that they have high control on price and quality. The bargaining power of Buyer in restaurant industry is high. If they have low bargaining power it means that their control over price and quality and will be low. Because the range of suppliers in this industry are high and buyer can buy from any supplier that gives him quality product with a good price deal. Threat of Substitutes The threat of a substitute is the level of risk that a company faces from replacement by its substitutes. In restaurant industry threat of substitutes is moderate.Bargaining power of buyer means that how much the buyers can control prices and quality. So if quality of material goes down the buyer will sure switch towards other quality products. McDonald’s. So . If there is a higher threat of new entrants. Because people now a days want more specialty oriented brands and they go to brands that have a specific specialty. Threat of new entrants in restaurants industry is low because people are tend to buy from different chains which are renown in market and have multiple branches all over the country. For example if a person want to eat a pizza he will not go to any general restaurant but he will prefer to go to Pizza Hut. and if he want to eat burgers he will prefer KFC. Threat of New Entrants Threat of new entrants means whether or not a new entrant can easily penetrate in the market or not. A substitute is a product that a customer can use instead of using other product. A high threat of substitute results in high competition among existing firms and less potential to earn higher products. this means that there are low barriers to entry and there is high possibility that the industry profit potential will decrease as a whole. A low threat from substitutes means that there will be less competition among the existing firms and there will be more potential to earn higher profits. This is because more competitors will fight for the same amount of business.

The walls of restaurants were designed and were soothing to the eye of the customer. with lower profit margins and less ability to decide price points. The problem was that in rush time customer had to wait to place order and get the order. . They trained their employees to give respect to customers and help out them in any of query. Q2: Assess the Services of Bikanervala based on SERVQUAL dimensions Answer: Tangibles: Bikanervala has a beautiful layout of building with eye catching furniture which gives customer a new experience and calm facility. A highly competitive market may end up being detrimental to all companies involved. They also had well developed sound system which plays a soft music with beautiful dim lights.setting up a new business in such a competition requires heavy capital and long time to build trust. Assurance: Bikanervala was a customer oriented firm that gave value to the customer. But this waiting was covered by the generosity of staff and their helpful nature. Also if any customer felt any discomfort the staff was there to help them out and solve their problems right away. Industry Rivalry The factor of competitive rivalry has significant impact on the competitive environment a company operates in because the degree of competitiveness has direct impact on the potential for profit that a company can expect. Responsiveness: The setup of the restaurant was in such a way that it helps the customer. Reliability: The staff at Bikanervala were very corporative and helpful. On this base many restaurants are giving their facility a theme to differentiate their product from other and cater more customer by providing a unique experience. Industry rivalry in restaurant industry is high because people have more choice and it is a leisure product also and people not only want good taste but a good experience.

But when they find best quality food with best low price they become frequent buyer of the Bikanervala. If there is an issue with any customer and he reported to restaurant it is their policy to resolve that issue within 24 hours. delivery and quality decide How is the QSR segment growing? What can Bikanervala do to grab more of the segment from other players? What do you recommend for Bikanervala’s success in future? Answer: The growth of QSR is growing because they have highest market share of 43% in 2013 and forecast says that till 2018 the segment will grow thrice as current value which will 167. They having training department also in HR which trains employees to fulfill daily task requirements of the restaurant. This is an intense competition which they have selected and they are competing well in the industry.85% and . Cost Leadership.Empathy: They have an excellent feedback system. Answer: They have a well development HR department which fulfills their functions that are assigned to them. They are using cost leadership strategy as they are serving quality food at best price deal in the market which attracted many customers as customer want quality product and they are willing to pay more price for that particular quality. Q4 How is the HR system in place at Bikanervala? Are there few weaknesses (if yes). what is the competitive strategy of the brand . Key responsibility areas are specified for each employee from top management to apprentices.Focus. Q3: Who are the competitors of Bikanervala? How you qualified the competitors? Furthermore. They give incentives and bonuses to employees so that they perform their tasks well and with motivation. The feedback of the customer was one of the important factor for them. Three parameters of cost. kindly offer your suggestions to improve the HR system. or Differentiation? Answer: The competitors of Bikanervala are all the restaurants that serve good quality food as it is also their own claim which they made.

.this is a big potential market which Bikanervala. They can make drive thru windows and small take away windows in big shopping malls which will automatically attract the customers who want quick service food and by this it will cater a huge market and this will result in great market share.