The Leeds Livery
Problem Statement/ Objectives:
Hugh Tudor, a retired office manager wants to invest in a small business that provides him with additional income and a challenging entrepreneurial experience. Should he invest in the local British pub? What is the best investment strategy that can help him attain additional income with minimum risk?
Porter's Five Forces Analysis
1. Buyer Power
Who? Individuals and businesses
Low switching cost for customers
Customers are attracted by low price with high quality standards high 2. Supplier Power
Who? Labour, food and drink providers
Low cost of switching suppliers
3. Substitutes
High number of substitutes such as restaurants, hotels, motels, bars
Substitute products entry is high
Maintain customer satisfaction and comfort creates low room for substitutes
There isn’t any switching cost related to substitutes high 4. Barriers to Entry
Government License is required
Huge capital investment is required for setting up a geographically spread budget pub chain
Distribution channel access
The cost of switching is pretty minimal
High entry barriers due to maintain and supplying quality food and drink to customers high 5. Industry Competition
Fixed costs are high and price margin is low
Switching cost of customers is low
Maintain quality and service is a major threat and cause of concern
There are thousands of competitors from independent pub to national chain pub. high S.W.O.T analysis
Strengths
Hugh Tudor is a well-known, well connected individual, he could easily use this to his advantage to market the pub if he chooses to take over
Used to be office manager in large company, has experience in a management position
Physically fit and active, may benefit in this type of work environment
Pub is located in a town that has a rapidly growing population (recent arrivals are reasonably prosperous individuals)
Market for bar/pub industry has shied away from hard liquor and big noisy environments, to smaller, more intimate neighbourhood pub.
Hugh Tudor, a retired office manager wants to invest in a small business that provides him with additional income and a challenging entrepreneurial experience. Should he invest in the local British pub? What is the best investment strategy that can help him attain additional income with minimum risk?
Porter's Five Forces Analysis
1. Buyer Power
Who? Individuals and businesses
Low switching cost for customers
Customers are attracted by low price with high quality standards high 2. Supplier Power
Who? Labour, food and drink providers
Low cost of switching suppliers
3. Substitutes
High number of substitutes such as restaurants, hotels, motels, bars
Substitute products entry is high
Maintain customer satisfaction and comfort creates low room for substitutes
There isn’t any switching cost related to substitutes high 4. Barriers to Entry
Government License is required
Huge capital investment is required for setting up a geographically spread budget pub chain
Distribution channel access
The cost of switching is pretty minimal
High entry barriers due to maintain and supplying quality food and drink to customers high 5. Industry Competition
Fixed costs are high and price margin is low
Switching cost of customers is low
Maintain quality and service is a major threat and cause of concern
There are thousands of competitors from independent pub to national chain pub. high S.W.O.T analysis
Strengths
Hugh Tudor is a well-known, well connected individual, he could easily use this to his advantage to market the pub if he chooses to take over
Used to be office manager in large company, has experience in a management position
Physically fit and active, may benefit in this type of work environment
Pub is located in a town that has a rapidly growing population (recent arrivals are reasonably prosperous individuals)
Market for bar/pub industry has shied away from hard liquor and big noisy environments, to smaller, more intimate neighbourhood pub.