Business Strategy

 Five Forces 

Force	Force-Strength	Tony & Vinnie's Italian Bakery & Deli
Bargaining Power of Customers	Medium	The prices of our foods and pastries are reasonably priced for the quality it’s being provided in. Substitutes are available for the buyer as well though so if they really do not agree with the prices we have they have options.
Threat of Substitutes	High	(example: brand new Jersey Mike’s opened in the plaza right next to Tony & Vinnie’s). This is high because Jersey Mike’s is a well-known sandwich shop and it could threaten our company because people will want to purchase from somewhere more well known. There are also two pizzerias near the same plaza that offer similar products.
Bargaining Power of Suppliers	Low	Main suppliers include Thumann’s Deli Products and for the most part, the rest of our raw materials are bought at Restaurant Depot. There are other suppliers that we can choose from though when it comes to our deli products and flour supplier but we have a long and strong relationship with our current ones.
Threat of New Entrants	Medium	Profitability does not require economies of scale, government policy is not an issue, location is not a big issue, but our products are differentiated and our brand name is well known locally.
Rivalry	Medium	There are other bakeries and fast food restaurants around that rival our company that offer similar products but we have a large loyal customer foundation for years now that has only continued to grow.

Value Chain & Business Process 

Our company follows the Differentiations/Focus strategy. We chose this strategy because it focuses on a narrow market but instead of competing with the other local bakeries based on the price we offer our customers other elements that they value. For example, we are the only Italian bakery in town so that is something we really use to differentiate ourselves from our competition and we are the only local bakery that offers a delivery service with DoorDash which is an information system that gives our company one of its biggest competitive advantages. 

The primary activities in our company value chain include inbound logistics, operations/manufacturing, outbound logistics, sales and marketing, and services. Our company uses the process of supply chain management to get low-cost products.

Manufacturing: At the manufacturing stage at our company we convert raw ingredients into a product. Our bakery produces cookies, cakes, pastries, and many other items. How much we make depends on how many orders we have, what day of the week it is, and if any Holidays or big sporting events are coming up. We only plan to have our baked good for 1-2 days at most because our customers choose us over other bakeries because we make everything fresh on a daily basis. For these reasons, our manufacturing process is modified to a specific routine process. The process includes ordering raw materials, checking orders for the next day, converting it into baked goods, have them prepared at 7am for when the shop opens.