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Indian Restaurant Case Study Essay

Porter’s five forces model will help us to determine in what ways this new venture will use it when thinking about business strategy and the impact of IT. 1. Buyer power: Buyer power is high when buyers have many choices from whom to buy, and low when there are few. As a provider of the product or services, we should always wishes to reduce buyer power. For this enterprise the buyer power will be low because there is no other Indian restaurant in that area. In addition, the enterprise will keep track of the customers who make their visit often to the restaurant through loyalties programs, number of times credit card being used etc. and it is not feasible without large –scale IT systems. 2. Supplier power: supplier power is high when buyers have few choices from whom to buy. As a customer of other supplier organizations, you want to increase your buyer power.

Over here, IT plays a vital role in bringing buyer-supplier together through internet, IT-enable B2B e-marketplaces etc. For this business the supplier power will be low. We can create a competitive advantage by locating alternative supply sources for the organization. 3. Threats of substitute product or services: It is high when there are many alternatives to a product or services, and low when there are few alternatives from which to choose. Ideally, we want it to be in the organization in a market in which there are few substitutes for the products and services. In this venture if we talk about the availability of the Indian food in this area, the threat of substitute is very low.

But competition can be given other fast food chains like McDonalds, Wendy’s, domino’s etc. Over here we can take the help of IT by providing fast services to our customers by the help of taking order online, drive through etc. 4. Threat of new entrants: The threat of new entrant is high when it is easy for new competitors to enter a market, and low when the entry is not easy. Over here the threat of new entrant in this particular type of business is low because it required high investment, involvement of risk in front of the other fast food chains etc. 5. Rivalry among existing competitors: It’s high when competition is fierce in the market and low when competition is more complacent. Over here there is no existing competitor as far as the Indian restaurant is concerned. But still we can get competition from other fast food chains who have already established themselves in the market.


Business intelligence is a knowledge about your customers, competitors, business partners, competitive environment, and your internal operations that gives you the ability to make effective, important, and strategic business decisions. It is an IT applications and tools that support the business intelligence within an organization. The objective of BI is to improve the timeliness and quality of the input for decision making by helping knowledge workers to understand the a) Capabilities available in the firm.

b) Trends and future directions in the markets.
c) Actions of competitors and implementation of these actions. d) Economic, political, social, and regulatory environments in which the firm competes. Over here BI will help us in getting knowledge about competitors; future prospects of the business and hence will help us in efficiencies and lowering cost in internal operations of the restaurant. Through BI we can find out the business strategies which have to be implied in the future if restaurant faces a competition from other restaurant or fast food chains. It is known that BI systems provide actionable information and knowledge at the right time, in the right location, in the right form.


A customer relationship management uses information about customers to gain insights into their needs, wants, and behavior in order to serve them better. Customers interact with companies in many ways, and in each interaction should be easy, and error free. It’s uncommon for a customer to change companies after having a bad experience. The goal of CRM is to limit such negative interactions and provide customers with good experiences. Its plays very important role in the industry likes food industry because once customer have a bad experience in it he will never like to come back.

So we should take care of the quality of the food and good customer service. Not only this we should also take care of the other facilities which is to be provided to them like availability of the wi-fi within the premises so that they can do there work online, now over here IT plays its role. We can also provide facilities like free home deliveries, taking order online and they can book the table in advance to hold any type of gathering like graduation day, valentine day, birthdays etc. IT will help us to enhance feedback from the customer and thus meet their requirement as far as service is concerned, and they can also give suggestion to improve further.


Supply chain management will play very important role in this venture. IT will help us in bringing together vast network of suppliers. Over here, in restaurant business we have to take special care about the quality of materials to be used. Supply chain management will help us in tracking arrival the date of the material, expiry date of it, also help in tracking inventory and information about raw materials and their suppliers. Too many materials on hand means that too much money is tied up in inventory and also increases the risk of obsolescence, especially in the case of perishable goods. Too few materials on hand are not good either. So to avoid that situation we can use just in time (JIT) approach. It will help us in reducing holding cost.


To reach tipping point in this venture, the main focus would be on customer satisfaction and the quality of the food because customer wants value out of the money spent and it they get that value it will keep bringing them. It can be done by using differentiation strategy and IT will play major role in this. We have to do planning, implementing and controlling of the operations to satisfy customer requirement as efficiently as possible. We have to take care of the movement and storage of raw materials, in- progress inventory and all this can be done with help of IT. Staff will also play a major role in reaching to the tipping point. We will look for highly skilled and experienced staff for this. Importantly, all this would be offered to the customers at a reasonable price.

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