Strategic Analysis of Slices: E-Business Strategies

This article provides a strategic analysis of Slices, an online library for study material with solved assignments, essays, dissertation etc. It includes a PESTLE analysis, Five Force Porter Framework, Core Competencies Model, and recommendations for the business.

Strategic Analysis |
Slices E-Business Strategies

E-BUSINESS STRATEGIES 1
Table of Contents
Pestle Analysis...........................................................................................................................2
Political..................................................................................................................................2
Economic................................................................................................................................2
Social......................................................................................................................................3
Technological.........................................................................................................................3
Legal.......................................................................................................................................3
Environmental........................................................................................................................3
Five Force Porter Framework....................................................................................................3
Competitive Rivalry...............................................................................................................4
Suppliers Power.....................................................................................................................4
Buyers Power.........................................................................................................................4
Threat of Substitution.............................................................................................................4
The threat of New Entry.........................................................................................................4
The Core Competencies Model for Slices.................................................................................5
Fill in the blanks.....................................................................................................................5
White Spaces..........................................................................................................................6
Premier plus Ten....................................................................................................................6
Mega Opportunities................................................................................................................6
Recommendation........................................................................................................................6
References..................................................................................................................................7

E-BUSINESS STRATEGIES 2
Pestle Analysis
Source [(Latest Quality, 2018)]
Political – The government of UAE effectively support start-ups and entrepreneurship. Slices
is a local business formed by four entrepreneurs and Abu Dhabi’s Khalifa fund financially
supported this business (Slices, 2015). The fund is an entity of government, which provide
opportunities for doing business to young entrepreneurs in both service and industrial sectors
(Abu Dhabi, 2018). Though, the changes in the ruling government can result in changes in
the running policies which can be a risk for the restaurant.
Source [(Jabeen, Zamber and Khan, 2015)]

E-BUSINESS STRATEGIES 3
Economic – The GDP of UAE in 2012 increased by 5% in 2013 by 5.79 % which reflects the
economy of UAE is continuously increasing and due to which the purchasing power of the
customers is increasing and resulting into increase of company’s profitability. This is
reflected through the total revenue of Slices, September 2012 is said to be the best month for
sales as the revenue of the company touched AED 576,547. The increased sales of the
company reflect good performance and results in the growth of the country.
Social – The concept of establishing Slices is to provide healthy food to the people of the
country with the perception of contributing towards the corporate social responsibilities
(Slices, 2015). However, there are various challenges and barriers that company has to face in
order to survive in the market like change in the purchasing behaviour and taste of the
customer.
Technological – Technology in today’s scenario is very important to be implemented in
every business as the young population of UAE is tech-savvy, which reflects that all the
business should influence technology (Bush, 2016). In this segment there is huge risk of
advanced technology as if any of the company from other developed country entered in this
market with advanced technology then the existing business has to face losses. Therefore, it is
very important to involve advanced technology in the business operations.
Legal – The concept of Slices is to provide fresh, quick, and healthy food to contemporary
executives and students at competitive prices and the menu of the restaurant comprises
sandwiches, smoothies, salads, and soups. The restaurant follows all the legal guidelines for
preparing the dishes and does not encourage the consumption of fast food.
Environmental – The environment plays critical role in the survival of business therefore
business should take care that their activities should not disturb and harm the environment.
The government of UAE has implemented a Federal Law of 1999 for the development and

E-BUSINESS STRATEGIES 4
protection of environment according to which every business in UAE has to follow this law
and if the law is breached then business has to face penalties and punishment. The School
Food Program of Slices is involved in developing the environment where students acquire
healthy eating habits. This program acts as a holistic platform which appeals student to have a
healthy diet in their growing years.
Five Force Porter Framework
Source [(Jurevicius, 2013)]
Competitive Rivalry – The level of this force is high in the market as there are various
restaurants offering healthy food and fast food. However, slices have gained a competitive
advantage due to its exclusive set of resources. Along with this, the capabilities of its
employees make it different from other its competitors in the market.
Suppliers Power – The team of Slices buys its organic products from local farmers. The
supplier’s power is low in this segment, as there is less number of restaurants which offer a
complete range of health and diet food. This provides benefit to Slices as the supplier delivers
products as per the restaurant’s terms and conditions.
Buyers Power – The buyer’s power is high in this segment of the restaurant. As it is being
said that customer is King, therefore every business has to provide what the customer is

E-BUSINESS STRATEGIES 5
demanding and the offered product should meet the expectations of the customers. The slices
restaurant has a pressure to provide healthily as well as tasty food to its customers.
Threat of Substitution – The threat of substitute is high in this industry as many other
companies are trying to gain the market of Slices Restaurant by imitating the resources and
offerings.
The threat of New Entry – The threat of New Entry is high due to the absence of barriers
for new players in the segment. The Slices Restaurant has to be very creative and innovative
in terms of their offerings and ambiance of the restaurant because whenever the new player
take entry in the market they arrive with a new and innovative idea which effects the
performance of the existing business.
The Core Competencies Model for Slices
The core competencies model was developed by C.K. Prahalad and Gary Hamel. This model
emphasis on the mixture of collaborative, applied, specific, and applied attitude, skills, and
knowledge (Rouse, 2018). According to this model, the strategic objective of any business
should not focus on competing in the market but on developing a new competitive space.
Along with this, the focus of the business should be on future opportunities not on past
failures (Toolshero, 2018). This model talks about four core competencies:

E-BUSINESS STRATEGIES 6
Source [(Toolshero, 2018)]
Fill in the blanks – A company recognizes what are the important competencies that can be
utilized in existing markets. The Slice’s strategic capabilities are its proficiency and
appropriateness of its competencies and resources to survive in the market. The resources of
Slices can be categorized into two groups:
Tangible resource
 Stock
 Machinery, Furniture, Equipment
 Store Location
Intangible resources
 Ambience
 Goodwill
 Patent
Competencies – Competencies of Slices are categorized by the processes and activities by
which it organizes its resource successfully (Jabeen, Zamber and Khan, 2015).
 Experienced and skilled staff

E-BUSINESS STRATEGIES 7
 Effective customer service
 Offering ordered dish on time
 Healthy as well as tasty food
White Spaces – It is very important for a business to stay with its core business and
competencies. The core competencies of Slices are their local farmers who supply the organic
products and its employees. The restaurant can make use of these competencies in its new
market also in order to have clear targets.
Premier plus Ten – The strategic principle of this stage is to form new core competencies
which can be used in existing market. Slices can purchase some land and can offer that land
to the local farmers to cultivate the organic products. Through this, it can be ensured that the
cultivated products are safe and healthy.
Mega Opportunities – This strategy has high potential because when a business moves out
from local market to international market it has to make a strong market strategy or
competency to survive in the market for the longer term. Therefore, if Slices will start
cultivating organic products on their purchased land then they don’t have to purchase the
products from other suppliers in a foreign country and this will save their cost.
Recommendation
 Slices can purchase a land for cultivating organic products and can handover that land
to local farmers. This will result in getting healthy products at low cost and will also
provide employment to jobless farmers.
 Slices can also start its online business by creating its own website and application
through which they accept online booking and provide home delivery options to the
customers.

E-BUSINESS STRATEGIES 8
 The Slices Restaurant can expand its business at prime locations of the country where
they can attract new customers and can increase their customer base.
 It is also recommended that restaurant should implement market penetration growth
strategies to generate more revenue.

E-BUSINESS STRATEGIES 9
References
Abu Dhabi 2018, Khalifa Fund for Enterprise Development (KFED), retrieved 11 April
2018,
<https://www.abudhabi.ae/portal/public/en/departments/kfed;jsessionid=8fez5Cm9ZgksiXY4
WLvO1-WVJsq4r5JNSALe3Xge-EOM1p-Mhd2_!2026343620!-453232802!
1523436497341>
Bush, T, 2016, A PESTLE Analysis of The UAE, < http://pestleanalysis.com/pestle-analysis-
of-uae/>
Jabeen, F., Zamber, S. and Khan, K 2015, Slices: what is next? Emerald Emerging Markets
Case Studies, 5(4), 1-9
Jurevicius, O, 2013, Porter's Five Forces, retrieved 11 April 2018, <
https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>
Latest Quality 2018, Advantages and Disadvantages of PESTLE Analysis, retrieved 11 April
2018, < http://www.latestquality.com/advantages-disadvantages-pestle-analysis/>
Rouse, M, 2018, Core competency (core competencies), retrieved 11 April 2018, <
https://searchcio.techtarget.com/definition/core-competency>
Slices 2015, Who Are We, retrieved 11 April 2018, < http://slices.ae/about-us-2/>
Slices 2015, Healthy and Fresh Food for Student, Slice, retrieved 11 April 2018,
<http://slices.ae/>
Toolshero 2018, Core Competence Model, retrieved 11 April 2018, <
https://www.toolshero.com/strategy/core-competence-model/>

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