Technology plays an important role in increasing the bargaining power of buyers. With a large number of Regina population within the age range of 20 to 44 who are more in tune with technology and their ability to explore their environment, they can explore a restaurant’s website to check the menu and read the other customers’ reviews before deciding on visiting the restaurant. The threat of Substitute Product and Services This force explains how convenient it is for the consumer to find a substitute for the product being offered by the industry or the threat of the consumer finding another way of obtaining the services being provided. The threat of substitution limits the potential profitability of the industry. Tangerine food bar is faced …show more content…
The competition in this industry is quite intense. Restaurants employ a variety of tactics to attract customers such as placing adverts on social media, mailing meal discount vouchers to residents, differentiating themselves by creating their own meals in a bid to attract customers and build customer …show more content…
Also, technology plays an important role in consumer needs as well as any industry. Tangerine can therefore differentiate its meal offerings which is already effectively doing through creating different meals. The analysis of this external environment in relation to Tangerine restaurant provides business with the opportunity to explore the increasing population trend and various cultures migrating into Regina to provide meals that is not limited to the Canadian culture and cuisine. This also has the potential to cater to the scarcity of some raw materials, therefore, does not affect its business operations. Criticisms of Porter’s Five Forces Model Porter’s model creates the impression that there is constant rivalry in the business industry hence, no interaction takes place between competitors and suppliers. This is however not the case, the purpose of every business is to make profit, however organisations seek ways to partner to create value for their customers. An example is Scotiabanks’ partnership with restaurants to give meal discounts based on credit card points. Therefore, Tangerine could also seek collaborations with established organisations or event organizers to increase customer loyalty and brand awareness among Regina residents through the sponsorship of events and