A new, independently owned Italian restaurant has opened in…
Questions
A new, independently оwned Itаliаn restаurant has оpened in a tоwn that currently has 2 other Italian style restaurants, both franchise establishments. The owner knows that if his business receives great reviews in its first few years of being open, he will have the ability to raise prices higher than competitors because of its distinguished food and service. However, because the restaurant is new, they only have a small number of recurring customers. If he raises prices now, frequent customers may not come back. The setback of establishing prices at an amount that customers will want to pay is referred to as PorterÕs force of _____________.