In fact, Awfully Chocolate experienced a slump in revenue between 2013-2015 due to competition by malls and restaurants and had to close down their restaurant at Esplanade (Helfand-Rogers, 2016).
Porters five forces analysis provides a structure for analyzing the industrial forces and competitive forces in an industry (Porter M. In the industry that Awfully Chocolate is operating in, there is the barriers of entry are low, therefore there is high threat of new entrants.
With the identification of the unique customers to focus on, Awfully chocolate position themselves in that they will only concentrate on the quality and give value to those who will pay for it (Porter, 1985)For awfully chocolate, the core competencies they possess have to be the uniqueness of their cake, the high quality that offers value to the consumer, the well trained staff offering the best of services to the customers, as well as their ordering system by IBM which makes the ordering processes very efficient.
The cake quality is valuable, not easily imitable due to the unique recipe they possess as well as rare.
Awfully Chocolate has well trained employees that give high quality of service for the customers that keeps them coming back.
The franchising companies are also proud to be associated with the Awfully Chocolate brand, creating an internationally recognized brand.; awfully chocolate has the opportunity to expand, into areas outside the city centers as well as expand in their product portfolio.Awfully Chocolate brand is well known for making high quality chocolate cakes that the customers keep coming back for.They specialize only in chocolate cake and do not make other flavors of cake.They target the middle call mostly women and their product consider all races and religion since they are They sell premium chocolate at a fair value which is very high quality hence a target of the upper middle class.Their distinct brand name has become their selling point as they are associated with high quality chocolate cakes.Awfully Chocolate was founded in 1998 in Singapore, by Lyn Lee and her husband (then fiancé).The company has 17 outlets all over Asia in places such as Hong Kong, Guangzhou, Taipei, Dalian, Jakarta, and Shenzhen through franchising. The top level management is by the founder, then accounts and retail managers at middle levels and retail assistants at first line management (awfullychocolate.com, 2017).Low barriers of entry makes the industry attractive for new entry since there are low economies of scale, low product differentiation and strict government policies. Awfully Chocolate activities that contribute to the value of the product are both tangible and intangible resources.From the past transaction, Awfully Chocolate has high profits that has helped them expand to opening different shops as well as franchises.Most of the marketing is done through word of mouth, whereby the customers enjoy the cake and refer others for the same.This is in consistence with the model that they do not have displays in their shops to appeal to people but instead those who experience the quality get others talking.