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COMPETITIVE ANALYSIS



· Identifying current and potential competitors

Food service industry is constant with long-term future degree of development. Current competitors are represented by grocery stores located within yards near the football field. And potential competitors are those ones, representing the vending machine industry, which have not entered the sport segment of the market.

· Competitive strength grid

Skills and Assets Strengths Weaknesses
Vending machines (ours) Grocery stores Vending machines (ours) Grocery stores
Product Specially selected, always fresh and in needed quantity due to constant quality control. Strict quality control while buying, stowing items, storing them inside in appropriate temperature regime guarantees high quality and safety for customers and users.     Selected for all target groups of people - mass customization. Huge amount of products bought and sold does not allow timely quality control, which sometimes leads to stale items.
Price     Prices in grocery stores are higher than in discount supermarkets like “Magnum” or “Small”; but still are lower than in vending machines by 10 KZT approx. Prices of items presented in VM are slightly above the average/normal level across the city due to required expenses inquired by VMs’ service, repairs etc.  
Selection Hand-picked selection of products meant especially for football players and their supporters to meet urgent timely needs.     Too broad range of products for mass customers, no guarantee of satisfaction of footballers’ needs, random flow of buyers leads to queues and wasted time on waiting.
Service Fast, convenient, specially oriented service provided by automated mechanisms to satisfy urgent needs in snacks and beverages as fast as possible, regardless of temperature, time of day.     Service depends on human factor: quantity and speed of sellers, their well-being and mood. Due to the reason that these abovementioned 4 factors do not always meet each other, seller/s can be rude and/or slow.
Location Due to location right inside the football fields, the number of people possibly wanting to use the VM service is reduced to only football players and their supporters, which dramatically decreases queues (if not eliminates them at all) and, therefore, no time is misspent. Also, people do not have to abrupt the game or to leave it for a long time while searching for or going to a grocery store.     Closest grocery store is located in approximately 5-10 minutes by walk from the football fields, which requires player to quit the game for at least 15-25 minutes in order to find out where the store is, to walk to it, wait in possible queue and finally buy needed item.
Market growth Due to the limited amount of finances for now, fields on Shevchenko -Zhakorov streets are the only ones provided with VMs, however, eventually, when after certain time of presence and activity enough money is collected, it is very promising and beneficial to put other VMs. No competitors are detected.     Grocery stores are absolutely developed and highly spread area, therefore, there is unlimited amount of competitors, which is a significant barrier for free and easy growth.

 



Skills and assets Strength Weaknesses
Product VM GS
Price GS VM
Selection GS VM
Service VM GS
Location VM GS
Market growth VM GS

 

*VM - “Vending Machines”

*GS - “Grocery Stores”

· Strategy analysis

Our strategy is based on making a business profitable and with great future possibilities through providing service on convenient and selected location right on the football fields. Strategy of our competitor (grocery store) is based on location also, but in more broad and widespread spectrum targeting on the whole residential area. Vulnerability of such strategy is that when selecting location for a huge number of potential clients - products for broad range – all possible needs are to be met. So the quality of service and product for individually taken customer is lower compared to our strategy of providing high quality service concentrating on a concrete group of customers – football players.

 





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