5 Forces analysis of m. Porter

1. Threats from new entrants are rather high, as the restaurant industry is rather profitable and attracts a lot of new competitors. Entry barriers are low, capital requirements are not very high (comparing with other industries). At the first time, we won’t have any competitors in our sphere because our café combines several types of relax, as we mentioned before. We will have only specialized places as competitors.

2. Threats from substitute products are low, as Space cuisine is a unique product in Russia and it cannot be replaced by some other cuisines. In case of arising of this threat: To avoid it you should constantly improve your service and use all modern things. If you do it you will have a competitive edge.

3. Bargaining power of suppliers is high, as there are only a few suppliers that could deliver products that we need to serve our diches (high quality, high speed, low prices). We are depended on our suppliers overall due to the using only fresh and wholesome ingredients. To cope with it, we should deal the contracts with our future suppliers on continuing basis

4. Bargaining power of buyers is high, as customers are ready to pay for tasty, high-quality and unusual food and experience, for pleasant atmosphere, polite staff and interesting idea. It is very important in our area because we would like to meet customer’s needs and try to satisfy all of them. They influence on all our activities because the success of the café depends only on them.

5. Intensity of rivalry among existing competitors is high. On the one hand, there are a lot of different restaurants in the city. On the other hand, our restaurant offers a unusul cuisine and is unique because of the idea of the space atmosphere. Our café is the place where you can not only eating with pleasure environment, you also can know something new about innovations and relax with your friends with hookah and another entertainments of the cafe.

The legal form of our business

The size and nature of our business: we create for a start one commercial Space-cafe which will be like a museum or attractive place for entertainment. But if it will become popular we hope to open such cafes all over the world.

The level of control and the level of "structure" we are willing to deal with is a matrix hierarchical one. Because we have many aims in that place, so we'd like to have many managers of different area of our entertaining center.

The business's vulnerability to lawsuits: it will be an unincorporated organization. We don't expect problems of this kind in big scale. The only thing that could arise is the problem with property rights on the films that we would like to show.

Our choice for the legal form of business — Ltd.

Tax implications of the different ownership structures of Ltd: according to the Russian National Classification of services our cafe is included in the list of those business activities to which is used a system of taxation in the form of a single tax on imputed income (that is, the provision of catering services). We operate under the federal law № 101 from 2005 due to the fact that the floor area for visitors is less than 150 square meters.

Expected profit (or loss) of the business:

Whether or not you need to re-invest earnings into the business: we won't need any re-investing, we'll get profit of many entertaining things in the space-cafe — it will help us to get in plus sooner.

Operational presentation of the enterprise

Technical analysis: what kind of technology you have chosen?

We have in our café sky of stars’ projection on the semi-dome glass roof, a glass floor under which the layout of the city, space food in tubes.

Partnerships or agreements with your subsidiaries or franchises if there are any.

Partnerships with our suppliers, with the mall Galereya and may be with the planetarium.

Franchises with other countries.

What kind of work model do you choose (model of Ford, Taylor or flexible one)?

We chose Taylors’ model of management because of his idea that we need to train everyone of the staff and he believed in non-hierarchical structure.

Competitive environment