D 1. Perform a detailed analysis of Porter's Five Forces for FridayFridayEatery. Be sure to highlight barriers to entry and switching costs. Buyer Power: Buyer power is low. The restaurant is located in the heart of a small regional town. The restaurant has no competitors in the area. So citizens living in the small regional city don't have many choices to try. Even if there's a restaurant opening soon in the neighborhood, FridayFriday Eatery can keep buyer power low by introducing a loyalty program. Supplier Power: Supplier power is high. FridayFriday Eatery is the only restaurant in the neighborhood that serves multiple types of coffee, specialty teas, a bakery, and home-cooked meals. There were no competitors in the neighborhood. So customers don't have much choice to choose from other than to depend on FridayFriday Eatery. Threat of New Entrants: The threat of new entrants is high. There are already rumors that the coffee club will set up shop near the Eatery. The cost of setting up a restaurant is not very high, which means that new restaurants can enter the market without much haste. Barriers to entry are low. The cost of opening a coffee shop or small restaurant is not that high. So overall, barriers to entry are not high in the restaurant industry. Threat of Substitute Products or Services: The threat of substitutes is low. FridayFriday Eatery is the only Eatery at the moment. Rumors of CoffeeClub opening a store near the restaurant will affect FridayFriday Eatery, but not that much. To reduce the impact on the restaurant, switching costs can be used effectively. The restaurant can offer a 10% discount to regular customers or give away a fra...... middle of paper...... available. People like to chat, watch videos and surf the Internet while eating. With free internet and great food available at FridayFriday Eatery this would be an added benefit to the Eatery and attract more customers. Considering the cost factor of the change, people will avoid going to different restaurants because they could not take advantage of free internet connection while eating. So switching costs would increase. This will definitely give the Eatery the image of a 21st century restaurant. Free internet will also increase some sales. People who come just to use free Internet sit for a while and then definitely order a coffee or a quick snack. Finally, having the Internet would appeal to all types of audiences. Students, businessmen, etc. they would need the internet and providing it at their convenience would help the management of the restaurant.