CHAPTER II: BUSINESS ENVIRONMENTAL ANALYSIS

2.1 SWOT ANALYSIS

As a business that is new in the eye of the people in Tacloban City, it is expected
to have a higher return of investment. However, we expect an increase to achieve the
expectation of our customers with our products.

Strength Weaknesses

 Crispy, cheesy, and tasty  Expensive price

 Unique sauce  Negative perception of street
 Appearance foods
 Lack of product awareness
Our product is crispy, cheesy and tasty,
and it may capture customers because of
its unique sauce and appearance.
Opportunities Threats

 Little competitors  Increase competition

 High exposure location  Changing customers food
 Loyal returning customers preference
 Competitors located nearby

2.2 Michael Porter’s Five Forces Model

o 2.2.1 POWER OF SUPPLIES

Suppliers are important to our business "Potato cheesy meat balls" because they
provide the necessary needed ingredients for our product. (Tacloban Public
Market) one of our main suppliers for fresh potato and meat. They are important
because:
 Quality: The quality of our product, firstly needed the good ratings from their
buyers because it affects the success of the company and helps establish its
reputation in customer markets. We personally handle to buy our ingredient in
the market (Tacloban Public Market) to ensure the freshness of our ingredient,
because we want to make sure that our product "potato cheesy meat balls" is
fresh and in good quality to guarantee the satisfaction of our costumer.
Price: Price is the most common thing to our buyers, because in that way we can
budget our money. With the help of affordable supplies, we get ingredients at
affordable prices, which helps our profit.
Consistency: In terms of business, we sometimes rely on consistency and the
reliable ingredients. Suppliers provides our company "0-Bites" with a regular and
consistent supply, which enables us to maintain our production well. Suppliers
are an important part of our business because of their role on improving the
quality, lowering costs and maintaining the consistency of our potato cheesy
meat balls product. They also have the power to influence our price in any way it
can.
o 2.2.2 POWER OF CUSTOMERS
Customers are important because they the power to decide whether or not to
purchase Potato Cheesy Meat Balls, which can have an impact on demand and
sales. They are important because they have the power to support and advocate
our product. Customers are important because they are the provider of our daily
incomes. They are the reasons why our business grow. We have to take good
care of our customers so that they will comeback and patronize our business
also customers can make or break business simply by word of mouth. They are
the base of our business and the reason that we thrive. If customer is not taken
care of properly, they will tell everyone they know and it can easily cause a
decline.
Customers can affect our business by their feedback and improvement, their
feedback helps to identify areas for improvement in our product, services, and
overall operations, leading to higher quality and customer satisfaction. They are
the main source of revenue for our company. Their purchases have an
immediate impact effect on our income and financial situations. Schools and
other facilities, some meal programs at school and other institutions incorporate
Potato Cheesy Meat Balls. You can look into joint ventures with them. Potato
 Cheesy Meat Balls is usually craved by households and individuals for cravings.
This potato cheesy meat balls can be sold in school, neighborhood markets and
supermarkets.
o 2.2.3 THREATS OF NEW ENTRANTS
The threat of new entrants in the industry to compete with the business is high
because of the low initial capital investment, and our company are not well-
known that the new entrants can easily compete with us. So we make sure that
our product is unique and hard to find anywhere that no one can emulate our
product. By this, it will help us to have loyal customers.
o 2.2.4 THREATS OF SUBSTITUTION
Other firms may provide products like tofu meatballs, shrimp balls that could be
an alternative to cheesy meat balls. By appealing to vegetarian and consumers
who loves shrimp, these alternatives may have an impact on your company and
cause you to lose market share if you don't provide comparable products.
Establishing a new business can have various impacts, both positive and
negative, depending on the nature of the business and its market. Here are some
potential effects:
Revenue and Profit: A successful business can increase revenue and profit,
while an unsuccessful one may lead to losses. Customer Base: A new business
may attract or divert customers, affecting our customer base.
Investment and Financing: The presence of new businesses can affect access to
capital and financing options. It's important to assess the specific circumstances
and industry to understand the potential effects on our business and adapt our
strategy accordingly.
o 2.2.5 COMPETITIVE RIVALRY
Competition is the main problem in business especially when you are just
starting. In every business in the world needs to have a competitive skills in
creating unique features to make the business different from others. Being
competitive is not only based on how you will sell your product but it also needs
to have a thinking skill where you could apply on how will you make your product
a description of sensation on the place you will sell it. Direct competition usually
offers the same service or products as you. Indirect competition are two or more
businesses are targeting the same client need in the same market but offer
different products and services. In that way, it will be more risky for your
company if they have the needs that the other costumers seek. Example is
banana que. Banana que is made out of saba banana, from seeing the outside
feature of that product makes it easily to think that banana que and potato
cheesy meat balls are different product. By seeing the difference between the
two.