SWOT Analysis

SWOT Analysis is a very simple but a useful framework for analysing an organization's strengths, weaknesses,
opportunities, and threats. It helps us to build on what you do good, to address what we lack, to minimize the risks, and
to take the greatest possible advantage(opportunities) of chances for success.

S – The Strength that our business has is we provide essential commodity i.e. food at affordable and cheap prices at the
required place and at the required time. Most of the college students/corporate workers who have come from different
cities crave home-like nutritious food and we are here to fulfil their needs. In our menu you will get the variety of
homemade nutritious food at cheap prices.

W – Our weakness is that we require a huge capital outflow due to the lease payments of the trucks for the initial
period. Lease payments of more than 10 trucks would lead to huge capital outflow and lesser profits in the beginning
which becomes a weakness to the venture and will take us time to breakeven.

O – The opportunities that we have is that there is less competition and huge opportunities in front of Coaching
centres and corporate offices. Through surveys i.e. the questionnaire, information regarding need for evening snacks in
front of offices and coaching centres has been collected which creates an opportunity for us because of no or minimal
competition.

T – The threat that we face is already existing famous vendors. Many places have already established vendors
providing service for years and would be difficult to replace. Getting permissions from the local authorities and getting
permanent parking spaces for the trucks would be a challenge.
 New Market Entrants
The entry barrier is very low as
the cost to enter is considerably
low thereby high threat of new
entrants

Supplier Bargaining Power

Buyer Bargaining Power As the raw materials needed are
As the switching cost is low basic such as vegetables, ketchup,
bargaining power of buyers are a sauces, etc the number of
little high and we will have to keep suppliers are huge there by their
the prices according to their
demands
Porter’s 5 force bargaining power reduces and we
can demand cheaper rates

Competitive Rivalry Threat of Substitutes

There already exsits a high There are direct and indirect
competition in the street food substitutes as the street food
matket however at strategic vendors become the direct
location we can try to gain substitute similarly restaraunt
monoply become indirect substitute
Porter's Five Forces Framework is a method for analysing competition of the business. It derives five
forces that determine the competitive intensity and, therefore, the attractiveness of an industry in
terms of its profitability. It has five factors namely: -

1. Competition in the industry:

There already exists a high competition in the street food market however after strategically
locating our food trucks at proper locations during the required time we can try to gain
monopoly.

2. Potential of new entrants into the industry:

The entry barrier is very low as the cost to enter is considerably low thereby high threat of
new entrants and hence we will have to keep at our USP so that we don’t loose our
customer to new entrants.

3. Power of suppliers:
As the raw materials needed are basic such as vegetables, ketchup, sauces, etc the number
of suppliers is huge there by their bargaining power reduces and we can demand cheaper
rates and hence this is an advantage for us.

4. Power of customers:
As the switching cost is low bargaining power of buyers are a little high and we will have to
keep the prices according to their demands and hence keep the prices low and quality high
so that the customers are attracted to us.

5. Threat of substitute products:

There are direct and indirect substitutes as the street food vendors become the direct
substitute similarly restaurant become indirect substitute. Hence. The competition for our is
high.
Category Factors

Political ● New incentives and opportunities provided by the government to the

start ups

Economic ● Reduction in disposable income, due to high taxes and lower income
generation post COVID
● Rising inflation rates
● Greater recovery of around 11-13% growth in the India’s GDP
● Unemployment rates increasing

Social ● Increasing trends of being a fitness freak and greater health conscious
● People have less time for meal preparation
● People adopting healthy lifestyle by preferring proper meals
● Increase in tourists and iconic spots

Technological ● Developing a system to integrate various crucial processes

● A software to keep a eye on all the deployed trucks
● Giving the customers an option to pre book meals in case of a short
availability of time

Legal ● Process to obtain licenses and registration from the municipality

● The permits needed for the operation
● Comply with FSSAI and ISO guidelines

Environmental ● Reduce waste through using recyclable plates and plastic

PESTLE Analysis
 VRIO analysis

o V – value – healthy food at cheapest prices.

o R – rare – homecooked food and multiple locations in a single
day.
o I – imitability - maintaining a consistent food quality.
o O – organised – an app to trace and organise all the trucks
and their operations.