BUILD YOUR OWN BUSINESS You have recently inherited your grandfather's business, which is conveniently located in your city's downtown. The business offers many different kinds of specialized products and services and was first opened in 1952 and was a local hot spot for many years. Unfortunately, business has been steadily declining over the past few years. The business runs without any computers and all ordering takes place manually. Your grandfather had a terrific memory and knew all of his customers and suppliers by name, but unfortunately, none of this information is located anywhere in the store. The operational information required to run the business, such as sales trends, vendor information, promotional information, and so on, is all located in your grandfather's memory. Inventory is tracked in a notepad, along with employee payroll, and marketing coupons. The business does not have a website, uses very little marketing except word of mouth, and essentially still operates the same as it did in 1952. Throughout this course you will own and operate your grandfather's business, and by taking advantage of business practices discussed in this text, you will attempt to increase profits, decrease expenses, and bring the business into the 21st century. For the purpose of this case, please choose the business you wish to operate and create a name for the business. For example, the business could be a coffee shop called The Broadway Café, an extreme sports store called Cutting Edge Sports, or even a movie store called The Silver Screen. Try to pick a business you are genuinely interested in running and that aligns with your overall career goals.
Project Focus: Competitive Advantage
1. Identify the business you are going to build throughout this course and choose a name for your business.
2. Write an analysis of buyer power and supplier power for your business using Porter's Five Forces Model. Be sure to discuss how you could combat the competition with strategies such as switching costs and loyalty programs.
3. Write an analysis of rivalry, entry barriers, and the threat of substitute products for your business using Porter's Five Forces Model. Be sure to discuss how you could combat the competition with strategies such as product differentiation.
4. Describe which of Porter's three generic strategies you would use for your business. Be sure to describe the details of how you will implement this strategy and how it will help you create a competitive advantage in your industry