Q 1. Conduct a detailed analysis of Porter's Five Forces for FridayFridayEatery. Be sure to highlight barriers to entry and switching costs. Buyer power: Buyer power is low. The restaurant is located in the heart of a small regional town. The restaurant has no competitors in the neighborhood. Citizens living in the small regional town therefore do not have many choices to try. Even if a restaurant opens in the neighborhood soon, the FridayFriday Eatery can keep purchasing power low by introducing a loyalty program. Supplier Power: Supplier power is high. FridayFriday Eatery is the only restaurant in the neighborhood offering a variety of specialty coffees, teas, a bakery and home-cooked meals. There were no competitors in the neighborhood. So customers don't have much choice but to depend on FridayFriday Eatery. Threat of new entrants: The threat of new entrants is high. There are already rumors that the coffee club will open a store near the restaurant. The cost of setting up a restaurant is not very extravagant, which means that new restaurants can enter the market without much difficulty. The barriers to entry are low. The cost of starting a cafe or small restaurant is not that high. So overall, the barriers to entry are not high in a restaurant industry. Threat of substitute product or service: The threat of substitution is low. FridayFriday Eatery is the only restaurant at the moment. The rumor that CoffeeClub is opening a store near the restaurant will affect FridayFriday Eatery, but not that much. To reduce the impact on the restaurant, switching costs can be used effectively. The restaurant may offer a 10 percent discount to regular customers or give a fr...... middle of paper ...... available. People like to chat, watch videos and surf the internet while they eat. With free internet and good food available at FridayFriday Eatery, this would be an added benefit to the Eatery and attract more customers. Considering the cost factor of switching, people will avoid going to different restaurants as they would not be able to enjoy the free internet while eating. The cost of switching would therefore increase. This will certainly give the Eatery a 21st century restaurant image. Free Internet will also boost some sales. People who have just used the free Internet will sit for a while and then definitely order a coffee or a quick snack. Finally, having the Internet would target all types of audiences. Students, businessmen, etc. would need internet and providing them with easy access would make it easier for the restaurant to operate..