Greece Food Market, Business Plan Example

Michael porter’s 5 force model

This is a strategic business planning model that was advanced by Michael porter in the 1980s. Porter’s model is pegged in five cornerstones; these are buyers, substitutes, suppliers, competitors and new entrants. In trying to enter Greece food market with “Papa Murphy” pizza as the product, the following is the analysis of the industry status using Porter’s five forces model.

Bargaining power of suppliers

As far as the suppliers of the key components are concerned the market can be said to be neutral. This is to say that there are as many suppliers as there are consumers. Key suppliers here include meat, milk and other agricultural product producers. Hence our bargaining power will be quite limited. There will be no any major competitive advantage based on this hence we ought to get it elsewhere.

Bargaining power of customers

The prices of our products are acceptable by all the customer groups, especially for low income customers. Because of the nature of our products, they are designed for daily consuming. There are a wide range of alternatives available in the Greece market. Therefore, customers are not very sensitive with the price. We may need to differentiate our pizza in order to fight off competition. Generally speaking the macro market of pizzas in Greece is quite large and promising. What we need is a good strategy for us to capture a reasonable market share. One major boost we enjoyed in entering this market is that citizen’s welfare is not affected. Authorities gave us a clean bill to go ahead with our plans.

Threat of new entrants

Currently we are the new entrants into Greece food market but this does not overrule the possibility of other new comers. To counter competition risks we will need to partner with already established firms for an infinite period. We hope this will reduce the business rivalry being experienced in the market. In this venture another inevitable risk that comes in is that of management. We plan to deal with this by establishing good cordial working relationships with the management. It will be a matter of give and take. By this we aim to capture our niche market and then serve it well so that even if other new players emerge, we will be at a better position to survive.

Threat of substitute products or services

This is a major challenge in our bid to set up pizza business in Greece. To start with there are many substitutes products and services. But also the majority of the population likes pizza and a good number takes it on daily basis. Therefore there is potential of doing good business. To gain a market share, we are going to do a good market research and identify the following;

• Weaknesses of current players in the business,
• Unmet customer needs and
• Competitive advantage that we may use.

Competitive Rivalry within the industry

As already mentioned there are many players in the industry thus rivalry between the players is stiff. So we must approach this market with good strategies. One of them is use of online ordering process. With this we are optimistic to seize a considerable market especially that of office and home workers. Very few players are using this method currently. Another strategy will be making of customized products. Changes in tastes and preferences mean that producing a ‘one size fits all’ is not appropriate. Therefore this is another method we opt to use to get some customers. This one has been totally ignored by the current players hence we need to exploit it fully.