Industry Analysis

One of the types of industry analysis is Competitive Forces Model (Porter's 5 Forces).

The forces help the company to make analysis easier and it makes clear about industry.

One of 5 Forces is substitute for goods and services. Instead of coffee, Nemah Cafe provides another type of drinks such as fruit-flavored drinks such as mango, strawberry and honey dew. It may attract customers who dislike caffeine to choose fruit-flavored drinks instead. The price is affordable and cheaper than coffee drinks since coffee is our main product and the coffee beans are imported from Jamaica. However, we still make it affordable for students.

Another type of forces is power of buyer. Even we provide quality products, we still put the lower price which is suitable for students. At the same time, we sometimes give discount and make promotions during breakfast time, lunch hour and tea time. We also provide free delivery to students who stay around IIUM starting 3 pm to 7pm. 

Those are some analysis from our company to measure demand-supply and to acknowledge the state of competition.

by Siti Nurhidayatul Nadia Zulzaidi (1522674)