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=
—--------------------------------------

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

1 | Page


I.

INTRODUCTION
Brand awareness: The chain of become one of the largest 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 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 Tom= with an a ractive dark purple color.
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: Thu Duc City. Man Thien Street is a densely populated area,

2 | Page


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 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.
3 | Page


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

4 | Page


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.

5 | Page


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.

6 | Page


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.

7 | Page

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

8 | Page


○

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.

9 | Page


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

Bun Dau Co Bong
De Nhat Quan
(Direct Competitor)
(Direct Competitor)

(Direct Competitor)

Location

10 | Page

● Located at 206 Man
Thien Street, Tan
Phu Ward, 9th
District
● Prime location,
easy to nd, sight
catching

●

●

● Located at 88 Le
Located at 152a
Van Viet Street, Hiep
Man Thien Street,
Phu Ward, 9th District
Tan Phu Ward,
● 9th
Easy to nd, sight
District
catching
Easy to nd


Space

● Simpler decoration,

● Simpler

own color but less

decoration, own color

investment.

but less investment.

● The shop does not

● The shop does not

have a large and airy

have a large and airy

space like the < A

space like the < A

Chanh <

Chanh’.

● 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
Food

● Same quantity with

higher price.

● Higher quantity with

the same price.

● Bun dau is distinct

the same price

●

from other places,

● Bun dau is distinct

distinct from other

from other places,

places, having special

having special taste

taste

● Fresher ingredient

● Medium
Price

Bun dau is

having special taste.

● Medium

● Medium
● Not special and
same as A Chanh.

● Not special

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

Menu

di erent.
Promotion

● Rarely, only on
special occasions

● Do not have
promotions

● Rare a ractive
and discounted
promotions.

11 | Page


●

Service

Food is served

quick and fresh.
Approachable
●

Having a facebook

fan page for customers to come by easier.
●

Appear on local top-

store must-visit

● Food is served

● Food is served

quick and fresh.

quick and fresh.

● No facebook fan
page

●
No facebook fan
page

● Appear on local
top-store must-visit
● No franchise

●

Appear on local

top-store must-visit
●

Franchise

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

12 | Page


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

13 | Page


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].

14 | Page