Mexican Yogurt Business Value Chain Analysis
Step 1: Activity Analysis
Once a team responsible for starting the business has been formed, they need to find ways of contributing to the experience of their customers. This means that there will be many business processes that will be used to serve and attract the customer. Therefore, the products which in this case are the Mexican yogurt will have to be effectively advertised to the customers.
Step 2: Value Analysis
The Mexican yogurt shop is quite unique and mostly because it serves a low fat and natural product. Once customers start buying the yogurts they will be rewarded based upon the number of purchases that they make. In this case, a customer can get extra yogurt depending on the yogurts they have bought. The shops will be located in various key locations in the country, such as near universities, colleges, and gyms. This will assist in ensuring that major competitors such as Starbucks and McDonalds do not overshadow the Mexican yogurt as well as other products. Furthermore, the chosen locations are quite desirable because they have a diverse range of customers who will be willing to try to out the Mexican yogurt.
The food served at the Mexican yogurt shop is extremely nutritious and this is the reason why it will attract a different type of customer when compared to that of its competitors. People interested in healthy eating can be sure to benefit from the products being offered. The prices for the products on offer are quite affordable unlike the other yogurts being sold in mainstream restaurants and fast foods. For example, the price of yogurt at Starbucks is pricier than the one at the Mexican yogurt shop.
Michael Porter came up with the value chain, which should be used by a business that wants to achieve a competitive advantage. The Mexican shops face threats of the entrance from other yogurt businesses because the barrier entry is quite low. It is easy for any individual to start a yogurt business and this increases the existing competition. Also, it should be known that there are few suppliers of Mexican yogurt products and thus the many suppliers would be suitable for the Mexican yogurt.
The suppliers contribute quite a lot to the success of a business and have to be kept happy at all times. Since there are not many shops that sell Mexican yogurt, it is likely that the buyers will not have a say in the price of the products. Porter also suggested that there is usually a threat by substitutes and this refers to other types of yogurt available in the market. Lastly, since the market is always improving, the Mexican yogurt shops need to find ways of improving their products so that effectively compete with other products.
Step 3: Evaluating changes and the plan for action
Once the value chain analysis is done, it is time for action to take place. This means that there will be many ideas that can be used to increase the value customers receive when delivering to them the Mexican yogurts. If everything is delivered to the customers in the right way, the business is sure to succeed. Ensure that a strong relationship exists with the customers in order to obtain feedback about how they think about the Mexican yogurt, as well as other products. This is a perfect way of confirming if you know what the customer wants because they are responsible for promoting the success of the business.
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