Strategy Planning for "alphabet of Taste"

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2 strength of Porter:

In case of an entrance to this industry competitors should overcome many difficulties.

• Qualification and experience of personnel.

All compared companies for a long time in the market ("oldest" to "Bakhetle" of 1991 of the basis, the youngest "the Globe of Gurme" 2004). All of them aim at the minimum routine of personnel, it allows to keep experienced specialists, improves service quality, also they regularly send to rates of employees for advanced training. Level of personnel already on is high so much that the beginner should make absolutely unreal efforts to correspond.

• Considerable size of investments

For opening of shop of such class big material costs on designing business of idea, repair of the room, advantageous conditions for suppliers will be involved (for the beginning of activities). Also shops of such class shall prove, and before the consumer will treat with doubt, on it the payback period increases many times.

3 strength of Porter:

In this segment of the market of the company constantly trace innovations of various producers, both foreign, and domestic in time to react (to sign the contract, etc.) and not to sustain losses because of new goods substitute. The beginning of production of desserts by the company was an example of such situation"7 Continent", they were high-quality and incomparably cheap in comparison with the prices of competitors, then the Alphabet of Taste company have expanded a line of desserts, have placed an advertising theme on quality, and also performed shares on trial tasting of a product. Then the buyer has not managed to learn "7 Continents" about a product yet and they have managed to hold clients and even to attract new.

4 strength of Porter:

As we are connected with retailers, all their activities are continuously connected with suppliers. All companies have more than 100 contracts with many companies. On the website "Alphabet of Taste" and "Globe of Gurme" it is possible to see working conditions with suppliers, and also there it is told about the conclusion of exclusive contracts with some companies which goods any more not to find in one shop of Moscow. All companies are open for new offers and are ready to sign contracts what they write on the official sites about.

5 strength of Porter:

At the moment all from the compared companies work according to the quality system ISO, that is provide really good goods that positively affects trust of buyers. From statistics of the website "Alphabet of Taste" we have found out that active "jump" of number of buyers has happened 2-3 years ago when people became more sure of financial stability and have slowly begun to afford luxury products. It is natural that all shops have a direct dependence on the buyer, on his opinion and behavior, but judging by the number of the opened new shops of a premium class, the sales profit grows.

In the conclusion it is possible to tell that in the conditions of a segment of shops of a premium class there is severe competition and on it it is possible to tell that at such companies as "The alphabet of taste" and "the Globe of Gurme" identical profitability and unprofitability.

The structure of the competition is not attractive to opening of business in this segment, in connection with high the competition, a large number of goods substitutes and long payback.

In this market it is difficult to call work an ideal competitive environment, in connection with many factors. However strategy of the companies by everyone tries to isolate as much as possible the organization from five forces of the competition, and also allow keeping strong positions in this segment.

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1.3 PEST

Factors

Opportunity

Threats

Response

Political factors:

- Change in the legislation on taxes and fees (change of a rate of the income tax, UIIT);

- Change of the customs legislation;

- Assistance to entrepreneurship from the state.In order to save budget the government is about to change the pension system. The age when a citizen starts getting pension will increase. In addition, the coming indexation is much lower than the inflation level. Inevitably, buying power of this segment of consumers will decrease in the nearest future.

1) Reduction of number of competitors;

2) Decrease in customs duties;

3) State privileges (decrease in a credit rate, provision of loans).

1) Increase in tax burden, risk of bankruptcy;

2) Increase in customs duties;

3) Increase in number of competitors.

1) The company monitors changes in the tax legislation and corresponds to innovations;

2) All product flows of the company are legal;

3) Using good reputation of a brand, the company can apply for the state support.

Economic factors

1) Economic crisis;

2) Change of course of currencies;

3) Change in price for transportation services.

1) Reduction of number of competitors;

2) Review of agreements on cooperation (finding of new compromises);

3) Reduction of prices of transportation services.

1) Value addition of goods, reduction of number of buyers;

2) Increase cost value of goods;

3) Increase in prices for transportation services.

1)