Scenario:

As a business investment, you are planning to open several donut shops throughout the city of Riyadh, with potential futu.re expansion plans in other city areas in Saudi Arabia including Jeddah, Dammam, Khobar and Al Hofuf. Your initial plan will offer a wide variety of donuts and assorted beverages (coffee, tea, juices, etc.) Currently, the only competitors you will face in the above mentioned locations are two global organizations, with no local competitors in the market for those locations. Realizing that the current customer market may well support a local business that can successfully compete in those targeted cities, you begin to build a business plan.

The first step in the business strategy plan is to conduct an analysis using the principles of Porters Five Forces Model, while applying each component to determine the strategic impact of each element: