Case Study Hometown Deli Stage 1

STAGE 1: Business Environment Analysis

In 1952 in the great city of San Antonio, Texas my grandfather established The Hometown Deli. He ran his deli in such a way that kept very loyal clientele returning. For decades his deli was successful with just word of mouth from clients. Like most things, time changes everything and in this case it’s the same. His word of mouth technique just is not reaching enough clientele anymore or the younger generations. I enthusiastically accepted his invitation to take over the business and distinguished many of the strengths which made The Hometown Deli a success. However, I also discovered the business had been declining the last five years and numerous weaknesses needed to be addressed. In order to bring The Hometown Deli into the 21st century there are several changes that need to be implemented and I’m enthusiastic about its future.

We will utilize Michael Porter’s Five Forces Model for our business environment analysis, which includes the development of our strategic direction, improvement of our business model, and how we use technology solutions to enable strategic outcomes. In using Michael Porter’s Five Forces Model we should be able to transition The Hometown Deli into the 21st century smoothly and successfully.

Michael Porter’s Five Forces Model analyzes the competitive forces in which a company’s operating environment operates in order to assess the potential for profitability in an industry. Its purpose is to combat these competitive forces by identifying opportunities, competitive advantages, and competitive intelligence. If the forces are strong, they increase competition; if the forces are weak, they decrease competition (Baltzan, 2012). (p.15-16)

(1) Buyer Power- This is the ability of buyers to affect the price they must pay for an item. Buyer Power becomes high in this situation. As mentioned in the case study, there is a rumor that a new deli will be going in a few blocks away called the “Wall Street...