Abdul Mannan 15121010

Safwan Mehmood 15121025

Shuja Ahmad 15121003
M. Hannan Sarwar 15221011

WAC of Bikanerwala: A never ending quest to delight customer

Q1: What is the profit potential of this Industry? For an analysis of potential, use the
Porter's Five Forces analysis

Answer:

For the analysis of any industry Porters five forces is an effective tool which tells the industrys
dynamics and also tells current condition of the industry. Following are the five forces used in it.

1) Bargaining Power of Supplier

2) Bargaining Power of Buyer
3) Threat of substitutes
4) Threat of New Entrants
5) Industry Rivalry

Bargaining power Of Supplier:

Bargaining power of suppliers means that how much the suppliers can control prices, quality and
availability of the product. If the buying power of supplier is high this means that they have high
control on price, quality and availability of the material and if they have low bargaining power it
means that their control over price, quality and availability of material will be low.

In restaurant industry buying of supplier are usually low because there are many suppliers in the
industry and they do not have much control over price, quality and availability. If they raise
prices the buyer will switch towards other suppliers and this will lead towards losing customers.
Also buyers want quality product and they are willing to pay for quality so if there is any
compromise in quality the buyer will switch. Same is the case with availability of material as
buyers want daily supply of materials without any interruption.

Bargaining power of Buyer:

Bargaining power of buyer means that how much the buyers can control prices and quality. If the
buying power of buyer is high this means that they have high control on price and quality. If they
have low bargaining power it means that their control over price and quality and will be low.

The bargaining power of Buyer in restaurant industry is high. Because the range of suppliers in
this industry are high and buyer can buy from any supplier that gives him quality product with a
good price deal. In this industry the buyers are willing to pay more but they are not
compromising the quality of the product. So if quality of material goes down the buyer will sure
switch towards other quality products.

Threat of Substitutes

The threat of a substitute is the level of risk that a company faces from replacement by its
substitutes. A substitute is a product that a customer can use instead of using other product. It is
an important factor because it affects company and industry profitability. A low threat from
substitutes means that there will be less competition among the existing firms and there will be
more potential to earn higher profits. A high threat of substitute results in high competition
among existing firms and less potential to earn higher products.

In restaurant industry threat of substitutes is moderate. Because people now a days want more
specialty oriented brands and they go to brands that have a specific specialty. For example if a
person want to eat a pizza he will not go to any general restaurant but he will prefer to go to
Pizza Hut, Dominos etc. and if he want to eat burgers he will prefer KFC, McDonalds.

Threat of New Entrants

Threat of new entrants means whether or not a new entrant can easily penetrate in the market or
not. If there is a higher threat of new entrants, this means that there are low barriers to entry and
there is high possibility that the industry profit potential will decrease as a whole. This is because
more competitors will fight for the same amount of business.

Threat of new entrants in restaurants industry is low because people are tend to buy from
different chains which are renown in market and have multiple branches all over the country. So
setting up a new business in such a competition requires heavy capital and long time to build
trust.
Industry Rivalry

The factor of competitive rivalry has significant impact on the competitive environment a
company operates in because the degree of competitiveness has direct impact on the potential for
profit that a company can expect. A highly competitive market may end up being detrimental to
all companies involved, with lower profit margins and less ability to decide price points.

Industry rivalry in restaurant industry is high because people have more choice and it is a leisure
product also and people not only want good taste but a good experience. On this base many
restaurants are giving their facility a theme to differentiate their product from other and cater
more customer by providing a unique experience.

Q2: Assess the Services of Bikanervala based on SERVQUAL dimensions

Answer:

Tangibles: Bikanervala has a beautiful layout of building with eye catching furniture which
gives customer a new experience and calm facility. They also had well developed sound system
which plays a soft music with beautiful dim lights. The walls of restaurants were designed and
were soothing to the eye of the customer.

Reliability: The staff at Bikanervala were very corporative and helpful. The problem was that in
rush time customer had to wait to place order and get the order. But this waiting was covered by
the generosity of staff and their helpful nature.

Responsiveness: The setupof the restaurant was in such a way that it helps the customer. Also if
any customer felt any discomfort the staff was there to help them out and solve their problems
right away.

Assurance: Bikanervala was a customer oriented firm that gave value to the customer. They
trained their employees to give respect to customers and help out them in any of query.

Empathy: They have an excellent feedback system. The feedback of the customer was one of
the important factor for them. If there is an issue with any customer and he reported to restaurant
it is their policy to resolve that issue within 24 hours.
Q3: Who are the competitors of Bikanervala? How you qualified the competitors?
Furthermore, what is the competitive strategy of the brand - Focus, Cost Leadership, or
Differentiation?

Answer: The competitors of Bikanervala are all the restaurants that serve good quality food as it
is also their own claim which they made. This is an intense competition which they have selected
and they are competing well in the industry. They are using cost leadership strategy as they are
serving quality food at best price deal in the market which attracted many customers as customer
want quality product and they are willing to pay more price for that particular quality. But when
they find best quality food with best low price they become frequent buyer of the Bikanervala.

Q4 How is the HR system in place at Bikanervala? Are there few weaknesses

(if yes), kindly offer your suggestions to improve the HR system.

Answer:

They have a well development HR department which fulfills their functions that are assigned to
them. They having training department also in HR which trains employees to fulfill daily task
requirements of the restaurant. They give incentives and bonuses to employees so that they
perform their tasks well and with motivation. Key responsibility areas are specified for each
employee from top management to apprentices. Three parameters of cost, delivery and quality
decide

How is the QSR segment growing? What can Bikanervala do to grab more of
the segment from other players? What do you recommend for Bikanervalas
success in future?

Answer:

The growth of QSR is growing because they have highest market share of 43% in 2013 and
forecast says that till 2018 the segment will grow thrice as current valuewhich will 167.85% and
this is a big potential market which Bikanervala. They can make drive thru windows and small
take away windows in big shopping malls which will automatically attract the customers who
want quick service food and by this it will cater a huge market and this will result in great market
share.