ipl-logo

Buffalo Wild Wing's 5 Forces Analysis

562 Words3 Pages

Buffalo Wild Wing's 5 Forces 1. Bargaining Power of Suppliers: is low for all of BWW's products, They have several suppliers to choose from to get their products such as, food, drinks, and games. If their suppliers become unavailable, they have no problem switching to another supplier, which gives their suppliers less power to bargain with. 2. Threat of New Competition: BWW's have a medium size customer loyalty. Capital is needed for a new competitor to gain loyalty that is close to the same. They will also need extra capital to start operations, buy stores, and advertise (Casey,B. 2016, October 13). 3. Bargaining Power of Customers: Buffalo Wild Wing's is familiar for their unique experience in North America. T he less bargaining power …show more content…

Intensity of Existing Rivalry: Buffalo Wild Wing's competes with every restaurant, movie theater, and arcade because of the differentiation of their product, BWW's offers what most of their competitors restaurants can not, which give them an advantage over them. 5. Threat of Substitutes: BBW's prices are much higher than other fast food restaurants or family owned restaurants, because of their product differentiation. The Competitive Advantage of Buffalo Wild Wing's Buffalo Wild Wing's have low debt/ equity ratio, which is 0.07. They can take on more debt and open more restaurants to gain new consumers. In the past two years their earnings report has been on point, or went over and beyond the estimates. They gained profit even though there was an increase in the prices of good, and people eating out less often (Elblein, R. 2012, February 09). BWW cost of equity is 9.46%, which is enough return to cover the cost of their own equity (Stubbs,H. 2018, February 06. Their current ratios is about 1.4, which give them the capability of covering their liabilities if something negative happen. Over the last two years Buffalo Wild Wing's name has grown. It bring in a big sports crowd during team rivalry and championship. People like to go there to hang out with their family and friends to watch sport games together, have a good time, and to eat good

More about Buffalo Wild Wing's 5 Forces Analysis

Open Document