Nasi Kaok Case Study

897 Words 4 Pages
2.5 Competitive rivalry
It is basically refers to the widen of firms within an industry that put pressure on one another and drives profits potential to zero due to fierce rivalry. In this case, stealing profit or market share from one another may occur. The intensity of rivalry may affect both competitive environment and influence the ability of firms. If there is a high intensity of rivalry, it means competitors are aggressively targeting both each other markets and pricing product. However, if the intensity of rivalry is low, it makes an industry becomes less competitive and increases profit potential which the industry is considered to be disciplined.

The following are the external factors that contribute to the strong force of competition:
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Some small business owners are often reluctant to raise their prices once they had established a good baseline price because they worry that a price increase will alienate customers and drive them to the competition.
It can be competitive pricing were some small business owners choose to base their own prices on the prices of their principal competitors. Other than that, Nasi katok business can practice pricing above competition which the business is operating in a community in which low prices are most customers' primary concern. However, some Nasi Katok businesses can do quite well employing this strategy. The key to making it works is to provide customers with benefits such as convenient or exclusive location and high level of service.
Moreover, this kind of business can also practice pricing below competition by setting one's prices below those of its competitors. It can be effectively used in some instances provided they keep their operating costs down and no price war with other vendors. It is to exercise tight control over inventory and obtain good prices from
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2.5.5 Exploiting Relationships with Suppliers

Every business needs good and reliable suppliers. Set high quality standards and required suppliers to meet its demands for product specifications and price.
These are ways suppliers can impact the business:
2.5.6 Quality

Supplier can positively or negatively affect the quality of the business product. Higher quality increases customer satisfaction and decreases returns.
2.5.7 Timeliness:

Their timely deliveries or stock availability are crucial to how customers view the business reliability. A quick turnaround can become the key to minimizing the inventory, which in turn leads to less risk of inventory obsolescence and lower cash needs.
3.0 Conclusion

In conclusion, amongst the five porter's forces, the strongest force of Nasi Katok businesses in Brunei is the competitive rivalry. The reason being is because there are many vendors that are selling Nasi Katok. Nowadays, Nasi Katok has grew in trends and developed into a culture in Brunei and it becomes a food staple for

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