Topic five forces analysis and mapping competitors of bun dau mam tom a chanh restaurant

Topic Competitors of Bun Dau Mam Tom A Chanh
restaurant=
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IB1603 - IBS301m - FALL2022

TEAM MEMBERS:

STUDENT ID:

Nguyễn Ngọc Diệu

SS160498

Phùng Hữu Thiên

SS160263

Phạm Bảo Tâm

SS160318

Trần Thị Thùy Dương

SS150541

Trần Minh Quang

SS150381

Nguyễn Duy Quang

SS160525

Nguyễn Thúy An

DS160408

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I.

INTRODUCTION
Brand awareness: The chain of become one of the largest small restaurant until now, A Chanh has opened more than 10 branches
in central districts in Saigon. Bun Dau A Chanh is what it is today thanks
to the enthusiastic support of young people because really delicious.
Cuisine: It's no exaggeration to say that Bun Dau A Chanh is the place to
serve the "original" Northern Vietnamese with Saigon. The processing and presentation style as the "original". It is still a bamboo
mat lined with banana leaves, on top of which is the food that is packed
full of food, all of which look very eye-catching and aractive. The dish

with many "toppings": crispy tofu, boiled meat just arrived, the heart is
delicious because it is made very carefully without shy taste. Still a
bowl of Culinary space: Not only famous for the excellent taste of Chanh also oers a sophisticated culinary space. In addition to rustic
wooden or bamboo tables and chairs that evoke bygone ages with two
stunning black and white colors and a comfortable yellow atmosphere,
all branches of "A Chanh '' are painted with paintings of the streets of
the former capital. Additionally, thanks to the sta's excellent customer
service, diners also give A Chanh's shrimp paste vermicelli high marks.
When you come here, you will always receive the most aentive
reception. From the parking aendants to the waitsta, they always
maintain a polite and friendly aitude to customers, which is also a plus
point that makes customers visit Location: 9, Thu Duc City. Man Thien Street is a densely populated area,

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surrounded by many schools and located next to the high-tech park, so
this is a favorite place where many customers such as students or oice
workers gather to eat and drink. Therefore, the number of customers
focusing on eating and drinking in this area is always crowded.
Opening hours: The restaurant's opening time is from 10am to 9pm. With
a flexible opening time frame, A Chanh gives customers a comfortable

time experience that can be enjoyed at any time of the day without
worrying about the restaurant closing.

II.

FIVE FORCES
1. Rivalry among current competitors
Great number competitors: A Chanh is now facing erce competition
because there are a lot of Therefore, it creates a signicant impact on the restaurant's income
because practically most of its rivals in the area not only compete in
terms of direct selling but also via online sales channels.
Low switching cost: A Chanh and the neighboring Bun dau mam tom
stores are almost the same price and customers can quickly switch and
access their rivals. Given that this is a part of the food industry, switching
costs can be regarded as being nearly zero.
Lile dierentiation: As for the product dierentiation, A Chanh oers a
wide range of foods and drinks, but its competitors also oer the similar
range of products
Size and brand awareness dierences: In terms of the size and the
number of branches, A Chanh naturally prevails. From a small Bun dau
store, now A Chanh has grown into 11 branches throughout Saigon,
especially, each shop is located in bustling eating areas. Thereby, it has
the broader recognition and popularity compared to the alternatives.

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With such a large business scale, A Chanh has the advantage of capital,
which leads to an investment in-store furniture and an advantaged
material system compared to its competitors.
How can A Chanh increase the Rivalry Among Current Competitors?
Located on a busy eating street, it aracts many people and especially
a large number of students from neighboring universities and
dormitories. However, A Chanh and the neighboring Bun dau mam tom
stores are almost the same price.
So what customers consider is what A Chanh is quite dominant, that is
the reputation and reliability that A Chanh has brought to customers
throughout its operation and proven by the system development
nonstop. However, A Chanh does not rest on victory, it always receives
comments from customers and builds a team of professional and
dynamic sta. A Chanh constantly updates new services, and
promotions to stimulate consumption and increase competition.
2. Threat of new entrants
The economies of scale: are fairly easy to achieve in the industry in
which A Chanh operates. This makes it harder for those producing large
capacitates to have a cost advantage. It also makes production costless
for new entrants. This makes the threat of new entrants a stronger force.
Product dierentiation: It is low within the industry, where rms sell
standardized rather than dierentiated products. Customers also look
for dierentiated products. There is a weak emphasis on advertising and
customer services as well. All these factors make the threat of new
entrants high in this industry.
Capital requirements: The industry's capital requirements are low,
making it easy for new entrants to set up businesses as low expenditures

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must be cured. Capital expenditure is also low because of low Research
and Development costs. All these factors make the threat of new
entrants stronger in this industry.
Distribution channels: Access to distribution networks is easy for new
entrants, who can easily set up their distribution channels and enter the
business. With only a few retail outlets selling the product type, it is easy
for any new entrant to get its product on the shelves. All these factors
make the threat of new entrants a strong force within this industry.
The threat of new entrants reflects how new market players impose
threats on existing players. If the industry is protable and barriers to
entry are low, it will aract more players, and hence, the threat of new
entrants will be high.
How can A Chanh tackle the Threat of New Entrants?
A Chanh can develop brand loyalty by working on customer relationship
management.
To increase access to the target market, it can establish long-term
contractual partnerships with distributors.
A Chanh can also invest in research and development activities, get
valuable customer data and introduce innovative and dierent
products/services to set a strong dierentiation basis.
3. Substitutes and complements
Many substitutes and alternatives: Since A Chanh is situated on a busy
and well-known dining street, it copes with a variety of alternatives and

substitutes, including steamed broken rice, noodles, and the Sasin spicy
noodle system. Because of the threat of substitutes entering the market,
demand is undermined, and margins and prices are reduced.

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Price competition: With the wide selection of goods, competitors must
also oer reasonable prices—some of which are even more aordable
than A Chanh. However, the above dishes are mostly suitable for daily
meals, while Bun dau mam tom is more suitable for snacks when
gathering with friends or family. So the frequency of eating at A Chanh
about 1-2 times a week may not be too aected.
Power of distribution channels: Due to the extensive growth and
coverage of online sales platforms like TikTok or Shopee, A Chanh also
faces greater competition. This is a sales channel that will be very
developed and easily known if other restaurants/ stores are invested in
running ads wisely. The eye-catching and psychological tricks of online
products creates a great potential threat to the dishes at A Chanh
restaurant of being replaced.
How can A Chanh tackle the Threat of Substitutes and Complements?
Delivering high-quality service with a friendly service aitude that
increases client loyalty.
On the basis of the focus on sustainable business practices, promotion
methods, loyalty rewards, or deeper entry into the market of popular
social networking channels can be achieved to help maintain and

develop more in terms of scale and brand recognition.
4. Bargaining power of suppliers
Products will be created from raw materials, so the supplier has a great
impact on the selling price of the product and aects the prot, the
income of the business. The import of carefully chosen foods and the
source of those ingredients must be fresh and in line with the brand's
requirements. In addition, they must have a range of dierent suppliers
to avoid unfavorable consequences of relying too heavily on one source.

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With the large restaurant chains like Bun Dau A Chanh, the suppliers'
influence is particularly strong since the supply signicantly influences
the restaurant's selling price. The cuisine is made up of a variety of
components, including vermicelli, tofu, veggies, and others, so when the
supplier wants to exert pressure, all they have to do is raise the selling
price, even by a few Viet Nam dong.
In terms of competition, customers will often put pressure on the
company to supply their products when given the opportunity. Just a
small increase in the price of a supplier can cause the cost of production
of the product to increase. Meanwhile, the business will not be able to
increase or decrease the selling price of the product arbitrarily and then
the enterprise must accept a reduction in prots.
How can A Chanh tackle the Bargaining Power of Suppliers?
Because it is a popular product with everyone, there are many suppliers

who are able to meet the needs of customers but at good prices, so
choosing a source of supply is extremely important in the business of all
businesses.
5. Bargaining power of buyers
Customers are indispensable because they are the ones who experience
products and services, so they are the most fair judge of the quality of
that service's product.
At Bun Dau A Chanh , most of the customers are young people. They like
the taste of shrimp paste, the freshness of the food and the atmosphere
that restaurant gives. Customers are the ones who decide the faith or
success of their store. Here they serve very quickly, the friendly sta
aitude makes customers feel close without distance.

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Customers in the Food industry have a high price sensitivity. Your
consumer base will be limited if your products are too pricey. Therefore,
A Chanh oers an acceptable price for most people. It's not too
expensive to use and the quality of the food is accompanied with it.
They always come up with new dishes to make customers curious to try
and have substitutes for those who can't eat shrimp paste and replace it
with soy sauce, which makes customers feel satised with the
restaurant's service.
Recognize all risks and pressures for next developing steps in 3 years:
Rivalry among current competitors: Competition in business decreases

and lile dierentiation aects an individual company's market share
and shrinks the available customer base. A competitive market can also
force lower prices to stay competitive, decreasing prot margins for
each sale or service in the next 3 years.
● Year 1: Try to maintain and improve the quality of the food
● Year 2: Add a variety of toppings and dishes with high quality, not
sketchy to increase variety and avoid boredom because it is less
dierent from competitors
● Year 3: Expand good brand awareness via social media with high quality
services,

online and/ or oline advertisement, build the store

professional website
Threat new entrant:
Strategy to make threat new entrant lower:
● If the store does the cost leaders well plus sales revenue growth
stability, they will develop Capital requirements in the next 3 years.
● The distribution network expands and is more accessible to.
● Therefore, the store can pursue the strategy of expanded network
distribution and Product dierentiation. This can increase their sales.
● For detail:
○ Year 1 : Focus on Product dierentiation

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○ Year 2 : Continue to dierentiate products and begin to broaden
distribution, including (delivery, associable,...)
○ Year 3 : Growth the economies of scale
Substitutes and complements: substitute products ( both direct and
indirect) or services may displace their product. The threat of
substitution is high when rivals, or companies outside the industry, oer
more aractive and/or lower cost products
● Year 1: Dierentiation: Creating and developing a unique product or
service oering. There could be additional new recipes or ingredients
that may not be available in a substitute and complement product.
customers will be able to satisfy a need through only a specic product
and will not be easily swayed by substitute products.
● Year 2: Customer Value: Customers often look for the product that
provides the best value for money. This means that maximum benets
are being gained by spending the least amount of money. Constantly
looking for more good sources, optimizing the process chains to reduce
the cost of dishes
● Year 3: Brand Loyalty: Most companies strive to create and maintain a
strong brand loyalty among their customers. Can create loyalty
programs, promotional methods for large orders, special parties,
support to organize parties.
Bargaining power of buyers:
● Year 1: Maintain product quality as well as upgrade technology to
preserve product quality.
● Year 2: Always prioritize the issue of training service sta to be
professional, from service style to aitude to achieve customer
satisfaction.
● Year 3: The cost of the product, as well as the cost of maintaining the
quality of ingredients and training the sta, will be quite high, so the

restaurant needs to be balanced so that the price of the dish is not too
expensive compared to the rest.

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Bargaining power of suppliers:
The development plan at suppliers in the next 3 years is to diversify the
supply with adequate quality to prevent unnecessary risks to ensure that
the supply is never at risk.
● Year 1: We need strict quality control at the branches to ensure that the
taste and quality are uniform, closely check the input to ensure that the
quantity is correct to guarantee the price of entry exactly compared to
the number of servings to avoid loss.
● Year 2: The shop needs to invest in equipment and machinery to be able
to produce its own ingredients, For example: invest in tofu production
machines or produce shrimp paste to reduce the price of imported
products. to increase restaurant revenue.
● Year 3: If in years 1 and 2, the business of the shop after applying new
strategies is successful, then in the 3rd year we should focus on the
output of the product and focus on what brings. back to the customer.
III.

MAPPING COMPETITORS

We chose 3 dierent competitors of Bun Dau Mam Tom A Chanh, including:

Bun Dau H-Famil, Bun Dau Co Bong and Bun Dau De Nhat Quan. Location,
Space, Food, Price, Menu, Promotion, Service and Approachable are the main
factors of comparison.

Bun Dau H-Famil

Location

(Direct Competitor)

Bun Dau Co Bong
(Direct Competitor)

● Located at 206 Man
Thien Street, Tan
Phu Ward, 9th
District
● Prime location,

● Located at 152a
Man Thien Street,
Tan Phu Ward, 9th
District
● Easy to nd

easy to nd, sight
catching

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De Nhat Quan
(Direct Competitor)

● Located at 88 Le
Van Viet Street,
Hiep Phu Ward,
9th District
● Easy to nd, sight
catching


Space

● Simpler decoration,

● Simpler

own color but less

decoration, own

investment.

color but less

● The shop does not

have a large and

investment.
● The shop does not

airy space like the <

have a large and

A Chanh <

airy space like the
< A Chanh’.

Food

● Higher quantity

● Same quantity

with the same price

with the same

● Bun dau is distinct

price.

from other places,

● Simpler
decoration, own
color, but less
investment and
older.
● The shop does not
have a large and
airy space like the
< A Chanh’.

● Higher quantity
with higher price.
● Bun dau is

● Bun dau is

distinct from

having special

distinct from

other places,

taste

other places,

having special

having special

taste.

● Fresher ingredient

taste
Price

● Medium

● Medium

● Medium

Menu

● Not special

● Not special and

● Besides Bun Dau,

same as A Chanh.

it serves a special
course is Bun Cha
Ha Noi.
● Quite the same as
A Chanh and not

much dierent.

Promotion

● Rarely, only on
special occasions

● Do not have
promotions

● Rare aractive
and discounted
promotions.

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Service

● Food is served

● Food is served

quick and fresh.

Approachable

● Having a facebook
fan page for
customers to come
by easier.
● Appear on local

● Food is served

quick and fresh.

quick and fresh.

● No facebook fan
page

● No facebook
fan page

● Appear on local
top-store
must-visit

● Appear on

● No franchise

local top-store
must-visit
● Franchise

top-store
must-visit

Competitive mapping of key product basing on 3 criteria: Price, Quality,
Market share/Revenue:

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In general
In general, most rivals have unique advantages, varying from recipes to
services to locations. These can have an impact on consumer
expenditure, the store's reputation,... And most signicantly, the clients'
trust, which encourages customer loyalty.
My team would describe rival with a signicant competitive edge.
IV.

CONCLUSION
After experiencing the location as well as the quality of products and
services. Overall rating: 8/10.
Advantages: Use fresh, new products every day, no frozen food or old
ingredients leftover from previous days. Oil is changed continuously. The
original standard shrimp paste makes the dish aractive and familiar,
and also ensures quality, food hygiene and safety.

Disadvantages:
+ When the restaurant is crowded, the seats are quite cramped, as well
as the small number of fans, making customers feel hot and
uncomfortable.
+ At peak hours, customers are crowded, sta is easily confused, service
is a bit messy, so it is easy to order the wrong dish for customers.
+ The price is higher than the common ground.
+ The shrimp paste has been mixed with sugar, which is not suitable for
those who like to eat the original.
Benets of customers: The shop has many promotions and incentives for
customers on holidays by checking in at the shop to reduce money on
the total bill, free water when buying combos. When ordering through

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the app, you will also receive additional support for delivery costs, use of
safe eating utensils as well as no loss of food quality when delivered to
customers.
V.

REFERENCES
123DOCZ.NET (2015) [Online]

Available

from:

hps://123docz.net/document/2576226-lap-ke-hoach-kinh-doanh-q
uan-bun-dau-met.htm [Accessed 25th October, 2022].

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