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The hospitality services of the Glasgow University offers a wide range of catering service. The food products and other catering services are offered to a wide range of consumers starting from students, professors and other staffs. This as a result makes it a lucrative business for the University. Moreover, academic departments are also forbidden to outsource food from any other outlets. This as a result, has made them captive customers for the Glasgow University hospitality services. However, the institution also faces significant amount of competition from outlets outside the campus. These outlets include restaurants, pubs and other eateries which are in close proximities from the university campus. This as a result makes it easier for the students and staff to have an alternative option for eating outside the campus. This can be described from a theoretical stand point by highlighting the Porter’s five forces of competition.
The Porter (2008) mentioned that the competitive force not only arise from the rivalry among existing firms, but also from four other direction. The Porter five force analyses will help to assess the level of competition faced by the Glasgow University hospitality service. This data will be then utilized to analyse the required changes that are required to make the service offering at par to the desired level.
Power of Buyers: The power of buyers can be described in terms of their switching cost, which is indirectly proportional. If the switching cost of the buyers is low, then their bargaining power increases (Dalrymple, 2008). The availability of several restaurants and pubs in the close proximity of the university campus makes it easier for the customers to choose from several available options. However, outsourcings from outside eateries are not allowed in the campus. This as a result, reduces the buyers’ power slightly. Thus, the overall
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