4 Industry
4.3 Industry structure
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Table 9 Number of units and production
2011 Taoyuan city Yangmei
Units 8,922 547
Total production 35,727,000,000 2,190,000,000
Gross production 18,398,000,000 1,128,000,000
Source: Reproduced from Industry, Commerce and Service Census,2011 http://win.dgbas.gov.tw/dgbas04/bc2/ics100F/NY03/%E6%A1%83%E5%9C%92%E7
4.3. Industry structure
I use five force of Porter to analyze our store, which is below:
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One to one animal accompanying service will be the newest innovation in Taiwan. Currently there is one competitor provide similar service, but not exactly the same. This business in Yangmei is still fresh in the market. We expect it will increase in the following years.
However, this innovative service may need us to spend a lot of time and effort to educate consumers what benefit we will bring to them and why they need our service. Once consumers accept our service, the new entrants may join this market quickly.
These are no high tech or high capital barrier in our business. It means our business model is easily copied. Our strategy is to create the difference through service. We provide warm and friendly service to create a comfortable and relaxing environment. We want to earn their trust and make good reputation to retain their business and to attract more customers.
4.3.2. Bargaining power of suppliers and buyers
They are many animal shelters with overflowing capacity problem. How to reduce the number of stray animals and how to find potential adopters are always the primary issue to an animal shelter. For us, this provides us worry-free on the supply of animal staffs, although our goal is to bring awareness and help stray animals. Our primary concern is about how to provide best service to grow our market share to open more stores and adopt more animals. Our suppliers in food & drinks will be a wholesaler like Costco. They have very high bargaining power, because they provide the lowest price in the market. The price of the products we need do not change frequently as much very low impact.
Our dedicated service will be the only one in Yangmei, but our major product is not deemed
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essential at first and there are still one similar competitor (pet coffee shop) in Yangmei. The bargaining power of buyer is middle to high. The number of customers may be affected by external factors like income, economics and other situations. Our strategy is to make the connection about the need for love and loving between animals and customers. We will provide cute current situation pictures or videos of our animals to our customers. We'll tell stories to customers about our animals to help customer understand our animals well and get along with each other well.
4.3.3. Competitive Rivalry
We don't have any competitor in this "exclusive" animal accompanying service yet. But, in the food category, all the restaurants near our store will be our competitors. We compare ourselves with two restaurants near the proposed location (please refer to table 10) and we learn three facts. First, we are not well-known by the consumers and it will cause difficulty to attract customers. Second, our major product is not deemed essential yet and our customer may not come frequently in the beginning, and secondary products is not our main focus; we may not have great demand for our secondary product. Third, we treat different customer in a different way. Our service is not standardized to create operational procedure when dedicating time with our customers.
Niche &Strategy
Our niche will be that the concept of our business is brand new and focus on animal cuteness.
Even when the price is slightly higher, the new product facilitates the establishment of animal cuteness and the new image to make the different segment with the small restaurants near our
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shop. It helps in creating the image of essential as well.
Our none standardization service could be our strength. Even though It's not easy to pass down, but it means that our business is difficult to be copied as well.
Table 10 Comparison with competitors
Factor Our store Starbucks Nekomori
Cafe Strength Weakness Products New type of
standardization Medium Warm and with all our heart
Difficult to pass down Company
Reputation Not well-know Well-know Not well-know
Chance to Location Most close with
customers Appearance Warm and friendly
style High class Fancy Clean and comfortable
Lack in style to attract customers Advertising Word of mouth Word of mouth Word of mouth
Word of mouth
coffee shop Coffee shop
Be able to
Any store which provides food and drinks will be substituted for our meal product. There are only 5 types of store mentioned below provide food and drinks near proposed location.
However, what we provide are very different from those stores and some of our items are much cheaper than others. We don't position ourselves as a restaurant and don't want people to come
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in just to eat. Our target customers are animal lovers not hungry people. We provide service other restaurants can’ provide. We see ourselves as those restaurant's substitutes, but we don't really see them being our substitutes.
Pet coffee shop: Nekomori cafe
Brand shop: Starbucks Coffee, Madoz hot pot.
Tea Shop: Coco, comebuy.
Street Food: Any street vender.
Small restaurant: Any family owned restaurant is in this categories.
Convenience Store: 7-11, Family, Ok.
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Our store will use differentiation strategy. focus on a segment of market and offering a brand-new service.
SWOT Analysis
Strengths
Benefit of first mover advantage
Location near target
customers
The population Yangmei district is growing protection may be low
b ff d b h