Bargaining power of Suppliers (weak)

Number and size of suppliers- weak force

Switching to alternative materials- weak force
Particular supply in demand- strong

Entities in Eat all you can industry highly depend on their supplies needed for their entire
operation, but a large population of suppliers weakens the power of individual supplier to control
the customers by setting high prices for their commodities. In the case of Holidayland who has
multiple suppliers, it preferably to choose suppliers which offer lower price and discounts. Also,
the Company’s products are mostly flexible which they can switch to the alternative materials
available in the market rather than choosing up the costly one. Suppliers have low bargaining
power except when a supply in a particular good they need is in demand, example when African
Swine Fever occur, the demand for pork decrease which lowers the bargaining power of pork
suppliers but poultries which offering chickens increase their bargaining power.

Threats of New Entrants (weak)

Capital requirement- weak force
Experience and learning effects- weak force
Cost of Brand Development- strong force
Consumer’s switching cost- weak force

The threat of new entrants in the eat-all-you-can restaurant industry can be considered high. The
barriers to entry includes the high upfront capital investment to put up a restaurant and the
knowledge and experience needed (specially in kitchen and supply management) to operate a
buffet restaurant because existing players are expected that they already built such expertise
over the years in the industry. Although small and medium businesses may enter in the industry
but they lack of resources to create a strong brand compare to the pioneer and well established
business like Holidayland. However, the low switching cost allows consumers to easily move from
a buffet restaurant like Holidayland towards to new food restaurant companies like
samgyumpsals which considered being new competitors.

Threats of Substitutes or Substitution (strong)

High substitute availability- strong force
Low perceived level of product differentiation- moderate force
Low switching cost- strong force
High performance-to-cost ratio of substitutes- Strong force

There are many businesses who offer substitutes dishes and food products, such as Korean
samgyupsal, fast foods, unli-wings and bakeries who offer variety of desserts. Some consumers
like teenagers and millennials may choose the mentioned products because they are now in-
trends and have low differentiation compare to the dishes in a buffet restaurant however, there
are still consumers want certain dishes like Kapampangan dishes of Holidayland. This external
factor contributes to the strength of the threat of substitution in the eat all you can dishes of
Holidayland. In addition, it is easy to shift from Holidayland to substitutes because of the low
switching costs because consumers preferred low prices. Shifting from Holidayland’s dishes to
substitutes typically involves insignificant or minimal disadvantages, such as slightly higher cost
per meal in some cases, or additional time consumption for food preparation .Moreover,
substitutes are competitive in terms of quality and customers satisfaction (high performance-to-
cost ratio). This external factor make substitutes a major strategic issue that requires approaches
like product quality improvement.

Competition among competitors

High number of firms – Strong Force
High aggressiveness of firms – Strong Force
Low switching costs – Strong Force

Food restaurant industry has many firms of various sizes and structures including eat all you
can, cafés and fast food restaurants. This factor strengthens the force of rivalry between
Holidayland and its competitors. Moreover, this factor make it also easy for the customers to
transfer or switch from one restaurant to another, especially in the case of Holidayland who
parking space. With this, there are customers of Holidayland who will choose to transfer to other
restaurant nearby. Moreover, most of the firms aggressively market their products through
effective advertising on social medias in which Holidayland's social media accounts are not that
active, as a result it increases the intensity of competitive rivalry that Holidayland experiences.
However, lately, Holidayland saw the importance of advertising through social medias and is now
working on it little by little. In addition, being the eat all you can restaurant who offers the lowest
price is the retaliatory move of Holidayland.

Bargaining Power of Customers/Buyers

Low switching costs – Strong Force
Large number of providers – Strong Force
Discounts and promos - Strong Force
Price sensitivity - Strong Force
Availability of information - Strong Force

The ease of switching from one restaurant to another enables consumers to easily impose
their demands on Holidayland. What makes the bargaining power of buyers more strong is that,
the market is saturated and a lot of firms nowadays are on trends. Another is that they also offer
different promos and discounts which is very attractive to the customers. These factors really
affect Holidayland since it is weak in terms of these. Although, it is now offering a promo which
is the birthday promo, it is not well established yet unlike to the promos offered by its
competitors. Moreover, even though Holidayland offers the lowest price of eat all you can buffet,
the price offered by its competitors is not that far from its. In addition, Holidayland, though well
established over the years is lacking of advertising strategy. This factor makes the customers
lacking also of information about it. As a result, customers tend to go to the restaurant which
they always see especially in social media.