INTRODUCTION The subject of food is as diverse and complex as the many dimensions that encompass it.

We need food to survive, but once we get beyond the basic needs of nutrition, the subject of food takes on an entirely different character depending on ones values. People associate food with their own personal lifestyles, culture, history, values, heritage, history, identity, and other attributes that make them unique.1 Gianluigi Zenti Academia Barilla and ElBulli have a lot of common theme ! the" have a##lied and are till a##l"ing the cultural and ocial influence to the food indu tr"$ the" are oriented and focu ed on innovation and creativit"$ the" have #ioneered and re tructured their o%n mar&et and 'u ine model $ the"

are glo'al$ the" have trategic alliance %ith u##lier $ retailer and in titution and$ finall"$ the" have %i el" u ed all the trategic management conce#t ( But$ a'ove all$ I 'elieve the" are 'oth #ur uing a 'rea&)even trateg" %ith the a'ovementioned 'u ine e in order to ca#itali*e %ith other correlated 'u ine e $ a a tool of #ermanent #romotion(+ Be ide the fact that the t%o ca e 'oth deal %ith the food %orld$ the" #ortra" it in t%o ver" different %a"$ focu ing! one on the dr" #a ta egment of the retailing indu tr" in the United ,tate -and involving i ue li&e education and touri m . Academia Barilla/ and the other on the haute cui ine egment of the re taurant indu tr" -and involving i ue li&e art and entertainment . ElBulli/$ 'ut 'oth trategicall" are #u hing on the connotative ide of food$ on the 'a i that food i connected %ith #roduct com#o ed '" three main com#onent ! #h" ical$ emotional and in #irational(0

G( Zenti$ The nternational !ood " #gribusiness $anagement #ssociation %ewsletter & #$# President 'eport $ +112( + Cfr( 3( Norton$ 4( 5ilanueva$ 6( 7athieu$ (l)ulli* The Taste of nnovation$ 8arvard Bu ine ,chool$ +119( D( Bell$ 3( ,helman$ #cademia )arilla$ 8arvard Bu ine ,chool$ +112( 0 Cfr( 4( 8artle$ Gianluigi Zenti$ President, #cademia )arilla +p# , The -hanging -onsumer* .emanding but Predictable$ +11:(

Inded$ no%ada" 'u ine

gro%th i #rimaril" driven '" intellectual a et ! idea$ 'rain#o%er and

creativit"( In a &no%ledge 'a ed econom"$ the human varia'le i no longer inde#endent$ 'ecau e it i nece ar" to evaluate the ;intelligence< of a com#an" a innovation #o%er( Thi conce#tion underline the fact that the future i more im#ortant than the #a t(=

Academia Barilla The fir t ca e ho% u the #roce of introduction '" the %orld> large t #a ta com#an" -Barilla/ of

a ne% high)?ualit"$ high)#riced #roduct line that feature a range of authentic Italian food #roduct ourced from arti an #roducer ( 3anagement 'elieved that the ne% line %ould have high a##eal on con umer ee&ing healthier food $ and %ill hel# e@tend Barilla> 'rand identification 'e"ond #a ta(

8o%ever$ the ne% line %a a 'old de#arture from Barilla> core com#etencie of high)volume #roduction and ale of fa t moving$ lo%)#riced good ( ,o far it had al o a trong correlation %ith the com#an" hi toric #rinci#le of ?ualit" and authenticit"$ a %ell a the commitment to #rovide the %orld %ith good food( But Academia had al o to fit into BarillaA long term trateg" and need for gro%th( Indeed$ the 'roader i ue on Academia Barilla i related to it #re ent role into the Barilla Grou#A organi*ation! a niche line$ %ith limited ale 'ut u eful a a %a" to enhance BarillaA authentic Italian image and a a te ting ground to identif" #roduct that could move into main tream di tri'utionB or a real com#etitive tand)alone 'rand( In thi cenario$ given the emotional and cultural dimen ion connected %ith food$ the evolution of

con umer &no%ledge i 'ecoming a reall" ignificant driver in the mar&et( Con umer are e@#ecting that manufacturer Cu t not #roduce manufactured #roduct 'ut al o teach them a'out tho e #roduct and ho% to u e them( Thi i reall" the 'ig innovation$ not Cu t 'eing a manufacturer$ 'ut al o 'eing a 'ig communicator of &no%ledge(D Becau e of that$ Academia Barilla and Barilla Grou# needed to
= D

Cfr( G( Barilla$ ntellectual and /uman -apital , The #ccounting of nnovation$ +112( I'idem(

#romote Italian food in America '" communicating Italian life t"le and %or&ing on 'elo% the line mar&eting activitie aimed to em#ha i*e ga tronom" at Academia Barilla( Eur uing thi trateg"$ Academia Barilla ha made an incredi'le im#act in the American food

mar&et that reache far 'e"ond #a ta$ 'ecoming a 'eacon of Italian gourmet food culture and ga tronom" that #rotect and #romote authentic food #roduct from Ital"( Academia Barilla i a ucce tor" of educating the con umer$ not giving the con umer %hat con umer %ant (:

3i ion ,tatement The mission of #cademia )arilla is to protect, develop, and promote the art of talian cuisine and gastronomic culture around the world. t develops the talian culinary art by celebrating traditions, nourishing innovation, and promoting the knowledge and the enjoyment of talian regional cuisines. Products, courses, publishing and consultancy services provided by #cademia )arilla serve as the key roads towards fulfilling this mission. # specific goal of the effort is to protect the world from imitation products and cuisines by introducing products, courses, and consulting services to consumers, food lovers, and businesses worldwide.

5i ion ,tatement With #cademia, we want to tap into the world of food lovers beyond taly. We believe that there are strong values in the talian way of eating, both in taste and nutrition, and that )arilla has the legitimacy to market this around the world. #cademia0s objective is to bring the best of our food and culture to the world, becoming a si1eable and profitable business.
:

In addition$ Academia Barilla i al o a culinar" center in Earma( It i e@clu ivel" dedicated to the art of Italian ga tronom" %ith the core mi ion of afeguarding traditional Italian food #roduct from imitation $ develo#ing and u##orting the Italian food art through culinar" training that fo ter innovation and creativit" among chef in Ital" and a'road$ #romoting and rai ing a%arene of Italian ga tronomic culture around the %orld through event $ initiative and #u'li hing(

-ontinental (urope is our home and will remain the focus of our growth, but we will pursue different strategies for the pasta and baked products markets. 2ur second most important operation is in the 3nited +tates where we mainly hope to expand our product portfolio.

ElBulli On the other ide$ the re taurant %orld i de#icted from the #articular #oint of vie% of the %orld 'e t re taurant in the %orld( According to numerou #ri*e and a%ard %on over the #a t fe% "ear $2 ElBulli and it o%ner and chef Ferran AdriG are recogni*ed a the "m'ol of modern coo&ing( The ver" trong carcit"$ the e@clu ivit" of the etting of Ro e $ on the Co ta Brava$ and the con tant effort #ut into innovation and creativit" are the main thing that contri'ute to cla if" ElBulli re taurant a a lu@ur" 'rand and a a #lace %here i almo t im#o i'le to get a ta'le( The re taurant i the fir t and core activit" of ElBulli! thi i %here the 'u ine $ the 'rand and the recognition ElBulli tarted and continue to gro%( From one ide$ Ferran AdriG and hi team mu t continue to develo# ne% and different di he for the ground)'rea&ing cui ine at elBulli to guarantee a continuou of the re taurant> tream of innovation$ the corner tone

ucce ( But the" are al o faced %ith the challenge of gro%ing the 'u ine $

e@#loring %hether the core conce#t from elBulli )thi Hta te of innovationH) can 'e a##lied to domain ranging from con ulting to fa t food( The #ro'lem i that ince +111 the re taurant$ &ee#ing on it e@clu ive trateg"$ ha re#orted D11 million euro lo #er "ear$ ho%ing that geniu and 'u ine re ult not nece aril" go hand in hand(

For ure from +11+ ElBulli %ill clo e do%n and it i e@#ected to o#en again$ ma"'e in +11= a a u' idi*ed foundation$ ho%ever$ in the mean%hile$ AdriG can &ee# on ma&ing #rofit through the ElBulli related 'u ine e (
2

ElBulli received hi third 3ichelin tar in 1II2 and it ha 'een elected a the to# re taurant in the %orld in +11+$ +11:$ +112 and +119(

3i ion ,tatement -reativity comes first4 than comes the customer 567 (very day we reinvent the model )efore the objective was to create new dishes, now what we seek is to create techniques and concepts that will generate many dishes. Whether you like what we do or not, and some might think it8s crap, the fact is that this is (l)ulli4 this is what we do, and where we have been pioneers.

5i ion ,tatement There is nothing against millionaires, but (l)ulli has to remain accessible to a greater number of diners who appreciate what we are here 567 The dream is to cook for one or two tables every day and to present our new creations all over the world.

JaK ACADE3IA BARI66A AND E6BU66I ,(7(O(T( ANA6L,I, Academia Barilla Strenghts S
1. Very strong brand and reputation 2. Complete integration with the group strategy 3. Excellent R&D unction and ocus on inno!ation ". Competiti!e ad!antage through their logistic networ# $. %igh &uality product sand suppliers' broad product line and e ecti!e pac#aging (. )ood promotion strategy *. )ood di!ersi ication strategy +. Excellent mar#eting positioning ,. )ood management 1-. )ood inancial trend

Weaknesses - W

1. .neducated consumers 2. %igh priced segment o the mar#et 3. /o direct sales orce ". /o young customers $. 0oo much identi ication with the image o 1taly 2ris# o ad!erse reputation3

Opportunities O

Threaths - T
1. Ris# o cannibali8ation 2. 9imited presence in emerging mar#ets 3. 9ow4margin industry ". %igh sensibility to price $. Capital4intensi!e industry (. 9ow4carb diet trend *. 1ncreasing women occupation +. )rowth o discount retailers ,. Volatility o raw materials price due to seasonality 1-. 5ast ood' pre4prepared ood and :un# ood trend 11. Economic downturn ris#s 12. Exporting ris#s 13. 1ncreased regulation on ood

1. Counter4cyclical products 2. 1ncreasing restaurant consumption 3. 5ocus on healthy ood diet ". 6ccupation o the 1talian a#e ood7s mar#et share $. 1ncreasing trend toward high4&uality products and customer ser!ices (. 0raditional cuisine and ethnic ood trend *. E4commerce

Academia Barilla i the onl" Italian retailer in the U(,( #a ta Indu tr"$ having a ver" trong 'rand and an e@cellent image and re#utation( Thi com#etitive advantage in term of di tinction and &no%ledge allo%ed it to 'uild effective relation hi# %ith it net%or& of re taurant $ di tri'utor and retailer ( Indeed$ BarillaA #a ta i a glo'al #roduct a'le to achieve cale economie ( It trong 'rand

image and re#utation offered to Academia Barilla even the o##ortunit" to occu#" the 'ig mar&et hare of the Italian fa&e food in the United ,tate ( But the cultural identification %ith Ital" could even re olve in a threat 'ecau e adver e ocial$ #olitical$ ethic and morale i ue on Ital" could affect AcademiaA image and re#utation(

AcademiaA #oint of trength are al o related to it com#lete integration %ith the overall grou# trategie and goal ( Thi give Academia the o##ortunit" to utili*e the managerial and technical u##ort and e@#erience of an e ta'li hed multinational grou#( Indeed$ com#an"A o'Cective and goal are mea ura'le and %ell)communicatedB manager are a'le to #lan effectivel" %ith an a##ro#riate organi*ational tructure at their 'ac&B %hile team morale i ?uite high 'ecau e of a clear hared mi ion and an effective " tem of re%ard and incentive ( In addition$ Academia Barilla ha an e@cellent RMD function focu ed on innovation( It #erform in) hou e #roduct develo#ment and con umer re earche $ efficient ?ualit")control #ractice and inventor")control #olicie ( Academia ha a 'ig com#etitive advantage through the Grou# logi tic net%or& -called Num'er 1/ a'le to deliver not onl" the com#an" #roduct 'ut al o other firm A #roduct ( Thi im#ortant intermediation a'ilit" give to Barilla an high 'argaining #o%er over di tri'utor and #artner $ maintaining margin ver" high -although the" are in lo%)margin indu tr" %ith high en itivit" to #rice/( Academia Barilla mean high)?ualit" #roduct -and a con e?uence #eciali*ed #remium u##lier /$ 'road #roduct line and an effective recogni*a'le #ac&aging( On to# of thi Academia Barilla i al o #erforming good #romotion trateg" 'a ed on #u'lic relation and 'elo% the line mar&eting activitie $ #erfect to not tread on the holdingA ma ive adverti ing trateg" feet( Academia Barilla 'rand ha al o an e@cellent mar&eting #o itioning! mar&et i effectivel"

egmented and the 'rand i %ell)#o itioned among com#etitor -the"Ave cho en the high)?ualit" end of the mar&et and ho%ever the related high #rice i #erceived a a##ro#riate '" co tumer /( Indeed$ firmA mar&et hare i increa ing %hile the #a taA con um#tion in the U(,( i decrea ing( The" targeted the U(,( continental mar&et for dr" #a ta ma&ing thi com#etitive advantage among com#etitor -focu ed on regional mar&et /( 2 till

trateg" a real

In addition Academia Barilla deal %ith counter)c"clical #roduct %hich are more con umed %hen the di #o a'le income decrea e( Thi i for ure a great o##ortunit" 'ecau e %e are no% tr"ing to get out from one of the %or t economic rece ion of modern econom"( Indeed$ the #a ta indu tr" #roved it elf much more reactive than other ector uch a con umer good or even other food item

area ( Becau e of it relative mall #rice -com#ared to the t"#ical 'a &et/ cu tomer u uall" not radicall" change their eating ha'it %hen the" come to #a ta( De #ite the rece ion and the con e?uent decrea e of the di #o a'le income of con umer there i an o##o ite factor %hich gave to Academia Barilla another o##ortunit"! the #o#ulation ageing #henomenon i increa ing the #re ence of #eo#le %ith more 'u"ing #o%er -'a'")'oomer /$ fo tering the re taurant con um#tion( But the economic do%nturn ho% al o im#ortant threat uch a the unavaila'ilit" of credit needed

to u tain gro%th$ high intere t rate and increa ing co t of ca#ital -e #eciall" in a ca#ital inten ive indu tr"/$ con umer trade of for u' titute $ unem#lo"ment and decrea ing #roductivit"$ over) #roduction or under)con um#tion ri & and decrea ing ca#itali*ation due to toc& e@change fall( 3oreover$ Academia ha tarted good alternative 'u ine related to touri m -through ga tronomic

tri# / and to education -through training culinar" cour e /$ giving even a 'ig 'oo t on local econom"(9 The increa ing focu on health" food diet$ the trend to%ard high ?ualit" #roduct and cu tomer ervice and the gro%ing attention for traditional cui ine and ethnic food trend re#re ent al o a 'ig o##ortunit" for Academia Barilla( But on the other hand Academia ha to face a ri ing

tandardi*ation of ta te and life t"le to%ard lo%)car' diet$ fa t food $ #re)#re#ared food and Cun& food (
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Thi allo% it to collect information on the indu tr"A ta&eholder -#roducer $ %hole aler $ retailer $ con umer $ e@#orter $ chef $ re taurant $ univer it"$ cit" and regional admini trator / and on the 'e t #ractice of the indu tr" -mi@ing #u'lic and cor#orate endeavor/$ %ith the de ire to ca#itali*e on and nouri h the traditional vocation of Ital" a a center of e@cellence for food and life cience (

In thi

cenario the real %ea&ne

of the Academia Barilla i that it ha to face uneducated

con umer to %hich it i

elling high #riced #roduct -a regard to dr" #a ta indu tr"/ %ithout a i the a' ence of "oung cu tomer for it #roduct $ indeed

direct ale force( Another %ea&ne

"oung #eo#le eem to 'e an" longer intere ted in coo&ing and traditional meal ( Another concern related to life t"le i the increa ing occu#ation of %omen -the traditional angel of the &itchen/( In addition$ the high #re ure of emergent mar&et on co t -in %hich Academia Barilla and Barilla Grou# have a ver" limited #re ence/ #u hed the agro)'u ine on the cultural ide of the

com#etition rather than the #rice ide( The Indu tr" i al o u'Cect to natural e@#orting ri & ! uch change in the euro)dollar 'alance$ trade tariff and 'arrier to trade or endeavor( Finall" there i a ri & of canni'ali*ation involving the #o i'le conflict 'et%een the manufacturing channel and the retailing channel in ide the holding( Even if the" tried to diver if" trategie $ #roduct $ egment $ #roduct $ #romotion activitie and the di tri'ution channel $ the t%o 'u ine eem to 'e to much related and integrated %ith the ri & that Barilla Grou# could eat the core 'u ine of Academia Barilla( u' idi*ing of local

ElBulli Strenghts S
1. Excellent image and reputation 2. 1nno!ation and creati!ity philosophy ocused on R&D unction' technological impro!ement and &uality4control policies 3. Employee morale !ery high' low turno!er and absenteeism' high appeal or new talented employees ". )ood management practices $. E ecti!e mar#eting positioning among competitors and ade&uate pricing (. E ecti!e promotion' ad!ertising and publicity strategy *. Excellent product &uality and customer ser!ice able to create an extraordinary one4o customer experience +. Exclusi!ity o ser!ice ,. .ni&ue products and techni&ues acing a !ery strong demand 2under4capacity3 1-. Excellent acilities' e&uipment and machinery 11. )ood di!ersi ication strategy

Weaknesses - W

1. /o brand loyalty 2. %igh cost 2!ariable and ixed3 3. ;rea#4e!en strategy' low capacity and ris# o structural losses ". 9ow ocus on customer satis action $. %igh seasonality< !olatility o ingredients= prices and business operations

Opportunities O

Threaths - T
1. %igh4cyclical industry 2. %otspots business 2 ad3 with much importance o gate#eepers 3. Volatility o ingredients= prices ". 1ncreasing trend towards con!enience $. 1ncreasing adoption o ast ood and ta#e out diet worldwide (. Decreasing spending' alling le!el o disposable income and increasing attitude toward sa!ing *. Decreasing and changing o consumption patterns +. Economic downturns ris#s ,. >tandardi8ation o tastes 1-. 1ncreased competition in the restaurant industry 11. 1ncreasing costs o commodity prices 12. 0he industry is increasingly being regulated by national' local and international authorities 13. Ris# o special tari s on ood

1. 1ncreasing restaurant consumption 2. 5ocus on healthy diet and ethnic' themed and inno!ati!e ood 3. 5ocus on customer ser!ice and &uality o products ". 0ourism as strategic dri!er $. 5ocus on social and en!ironmental responsibility (. E4Commerce expansion *. 1ncreasing le!el o go!ernment inter!ention 2patents and subsidies3

The real ElBulliA #oint of trength i re#re ented '" an e@cellent image and re#utation$ 'uilt u# #utting together a #hilo o#h" focu ed on innovation and creativit"$ a good mar&eting #o itioning and an effective trateg" aimed to offer to cu tomer an e@traordinar" one)off e@#erience( Dining at ElBulli mean much more than eating! itA an e@#erience a'le the give en ual and intellectual #lea ure$ a grand e@#erience of ta te $ te@ture and %onder %ithout follo%ing an" conventional food rule -involving i ue %hich var" from art and entertainment to education and touri m/( I
I

Cfr( ,( D" on$ R( 3c,hane$ Nitchen Revie%$ +119(

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The magic mi@ture of ,lo% FoodA conce#t $ 11 fu ion coo&ing$ haute cui ine #hilo o#h" and molecular ga tronom" have made ElBulli the fine t re taurant in the %orld and the ;8ol" 3ecca< for gourmet (11 An un een #roduct ?ualit"$ an e@cellent cu tomer ervice$ the uni?uene of #roduct coo&ed and

techni?ue u ed$ guaranteed '" a dee# focu on RMD function are the 'a i of the ElBulliA offer given at an afforda'le and ade?uate #rice( Becau e of thi re taurant fall en ational offer$ the ca#acit" of the

hort to the high demand$ ma&ing e@clu ivit" the central feature of the re taurant( ha definitel" ver" high fi@ed and varia'le co t -organi*ational tructure$ high

But uch a 'u ine

?ualit" u##lie $ facilitie $ ver" technological machiner" and e?ui#ment and RMD #olicie and #rocedure /( 8igh co t $ moderate #rice and lo% ca#acit"$ Coint in a 'rea&)even trateg" highlight the ri & of tructural lo e ( Indeed$ ElBulli doe nAt eem a re taurant( It doe nAt ma&e an" mone"( The 'oo& $ the hotel$ the other related 'u ine e $ the" ma&e mone"( But it %ould not 'e #o i'le to ma&e mone" and continue to do %hat %e at ElBulli do( ElBulli i a #lace %here limit of the &itchen are #u hed for%ard(1+ In thi cenario %e mu t underline that the re taurant indu tr" and the haute cui ine egment are

facing an increa ing con um#tion connected to a ri ing of the 'u"ing #o%er of the ageing of 'a'") 'oomer generationB a gro%ing trend to%ard ethnic$ themed and innovative food rather than health" diet$ and a mounting focu on #roduct ?ualit" and cu tomer ervice( The e re#re ent real o##ortunitie for ElBulli$ 'ut at the ame time it ha to face the ever)la ting #ace of the

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The a##lication of the ,lo% Food 3ovementA #hilo o#h" focu on the aim to #re erve the cultural cui ine and the a ociated food #lant and eed $ dome tic animal and farming$ defending 'iodiver it" %ithin an eco)regionB and on the im#ortance of convivialit" a one of the mo t fundamental a #ect of eating together( It mean that the food %orld i more than Cu t eating$ involving cultural and ocial i ue ( 11 Cfr( B( 3oor$ 9ourmet !ood$ +11D( 1+ Cfr( The Guardian$ $eet the world8s best chef$ +119(

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glo'ali*ation in term of tandardi*ation of ta te and fa t)Cun& food trend connected to an increa ing focu on convenience and to the ne% frenetic life t"le( In addition the re taurant indu tr" i reall" c"clical and u'Cect to threat related to economic do%nturn ! the unavaila'ilit" of credit$ high intere t rate and increa ing co t of ca#ital$

unem#lo"ment and decrea ing di #o a'le income( The overall re taurant indu tr" ha al o man" u' titute and high com#etition of different ocial activitie and it i con um#tion( The re taurant arena face a ver" trong com#etition 'oo ted '" an high volatilit" of ingredientA #rice due to the ea onalit" and '" the gro%ing co t of commoditie ( Finall" an im#ortant threat or o##ortunit" for the indu tr" i re#re ented '" international and governmental action ! increa ing regulation$ ri & of #ecial tariff on food$ introduction of #atent " tem$ increa ing level of u' idie and antitru t legi lation enforcement( u'Cect to changing #attern of

J'K T8E INDU,TRIE,

Dr" Ea ta Indu tr" The United ,tate #a ta mar&et can 'e 'ro&en do%n into fro*en #a ta$ dr" #a ta$ canned #a ta and helf ta'le #a ta( The 'ig #la"er in the dr" #a ta mar&et are General 3ill $ Da&ota Ea ta Gro%ing Com#an"$ Archer Daniel 3idland$ Barilla and Ne tle( The United ,tate im#ort it #a ta$ a#art from dome tic #roduction from Ital"$ Canada$ 3e@ico and China and it e@#ort #a ta to Canada and 4a#an( There are man" factor that affect con um#tion of dr" #a ta in the United ,tate ! economic counter)c"cle $ u' titution of #roduct $ overall decline in #roduction$ lo%)car' diet trend $ fa t food meal and trade #olicie (10
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In +11: the average American eat #a ta +(2 time a %ee& %ith an annual #er ca#ita con um#tion of I &g( The United ,tate im#ort a'out 19O of the #a ta it con ume in an" given "ear( Ital" e@#ort =:O of it #a ta #roduction( The U(,( re#re ent onl" 11O of thi figure ( Barilla ha +DO of the U(,( mar&et -%hile it ha 'et%een =1O and :1O of the

1+

Re taurant ) 8aute Cou ine Indu tr" The re taurant indu tr" i divided into three egment ! full ervice - ervice i #rovided and the order i ta&en %hile the #atron i eated/$ fa t food or ?uic& ervice -#atron generall" order at a ca h

regi ter or elect item from a food 'ar and #a" 'efore the" eat/ and managed ,ervice -on) ite food ervice and food contractor /( 1= ElBulli i in the fir t egment and it o#erate in the #remium niche of the mar&et! the haute cui ine$ #ioneering molecular ga tronom"(1D The haute cui ine indu tr" re#re ent a glo'al indu tr"! mature in the %e tern countrie and gro%ing in the emerging mar&et and the mo t im#ortant #la"er of the indu tr" are ElBulli in ,#ain$ 7d)D1$ 3oto$ Alinea and The France 6aundr" in the United ,tate $ Eierre Gagnaire in France and The Fat Duc& in England(

Italian mar&et and ++O of the Euro#ean mar&et/( Cfr( 3.+. Pasta $arketing 'eport, +11:( 1= 5er" 'riefl" and Cu t a a 'enchmar&$ in +111 the re taurant indu tr" in the U(,( i %orth a'out D91 million dollar of %hich 099 million are connected to eating #lace -other are 'ar $ tavern $ managed ervice $ lodging #lace re taurant $ retailer and non commercial/( It ha increa ed more than D1O from +111( The re taurant indu tr" em#lo" a'out 1+(2 million #eo#le$ or IO of the U(,( %or&force and it ale are e?ual =O of the U(,( GDE %hile it overall economic im#act i e@#ected to e@ceed P1(D trillion( Cfr National Re taurant A ociation$ :;<; 'estaurant ndustry & Pocket !actbook( 1D 8aute cui ine refer to grand and ela'orate di he erved in re taurant of the 7e tern %orld( The #re#aration and #re entation are 'reathta&ing$ and the meal are rather large$ 'ut erved in mall cour e i*e $ ho%ca ing rich and uni?ue delicacie ( Toda"> haute cui ine i n>t characteri*ed '" an" #articular i*e$ 'ut more to a fu ion of regional and ea onal ingredient $ careful and thoughtful #re#aration$ and ela'orate ervice( It i definitel" related to an u# cale dining e@#erience( On the other ide molecular ga tronom" i a t"le of coo&ing in %hich cientific method and e?ui#ment are u ed( Thi t"#e of coo&ing e@amine $ and ma&e u e of$ the #h" ical and chemical reaction that occur during coo&ing( Cfr( /aute -uisine$ Food Dictionar"$ +11IB 4( 8arlan$ $olecular 9astronomy$ A'out(com! Coo&ing E?ui#ment$ +119(

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JcK T8E EORTER FI5E FORCE, 3ODE6 OF T8E RE,TAURANT ) 8AUTE CAU,INE INDU,TRL
Potential Development of Substitute Products or Services
1. ?any substitute products 2. /o cost or the costumer in switching to a substitute 3. Customers are li#ely to substitute ". >ubstitutes ha!e per ormance limitations which do not completely o set their lowest price

Bargaining powers of suppliers

1. 1nputs are really selected and !ery much di erentiated 2. 0here aren7t many potential high &uali ied suppliers according to the excellent standard o the irms in the industry 3. Cost o purchases has signi icant in luence on company7s o!erall costs ". 0here are many competitors to choose rom or suppliers $. 1t is di iclt to substitute inputs readily in a labor4intensi!e industry@ (. 1t is not easy to replace inputs with substitutes without rethin#ing the business model or switching between supplies without incurring additional costs and it is unli#ely to recei!e a!orable pricing

ivalr! among "ompeting #irms

Bargaining Power of "onsumers

1. .ni&ue product and brand 2. 1ncreasing trend toward restaurant consumption 3. 9arge number o buyers in relation to the number o irms ". Demand higher then supply $. 6ne4o experience (. Demand is a unction o discretionary incoming *. 9arge number o customers each with relati!ely small purchases +. /o costs or customers in switching suppliers ,. Very di icult !ertical integration or the customer 1-. Customers are sensiti!e to high prices 11. 0here are no incenti!es to buy li#e promotions' coupons and o ers

1. >trong competition among irms 2. /ot rapid growth 2it is almost related to increasing population' positi!e economy and rise in the demographics o eating out consumers3 2. Cyclical industry with intermittent o!er4capacity or under4production 3. 0he ixed costs o the business are a relati!ely high portion o total costs ". Di!ersi ied competitors $. /o signi icant costs in switching to a competitor

Potential $ntr! of %ew "ompetitors

1. Ri!alry among new entrants is strong 2. ;randing ma#es a bigger di erence 3. 0here is a strong di erentiation in term o product' ser!ices' technologies and tecni&ues ". Established irm ha!e a!orable contracts with long term suppliers and better brand recognition ". Customers don7t incur in any signi icant costs in switching suppliers $. >et up costs o a haute cousine restaurant are expensi!e but they are not prohibiti!e (. 0here is no di iculty in accessing distribution channels or newcomers *. /ewcomer ha!e no problems in obtaining the necessary s#illed wor# orce' materials or suppliers +. 9icenses' insurance or &uali ications are not di icult to obtain ,. ?anagement experience helps to analy8e and reduce costs

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From the anal" i $ %e could ummari*e in thi %a" the indu tr" #rofile! it ha relative lo% 'arrier of entr"$ cu tomer have moderate 'argaining #o%er although 'randing i a trong differentiator$ and u' titute do e@i t for cu tomer ( The indu tr" ha man" u##lier %ithout trong 'argaining #o%er and the rivalr" among com#etitor i inten e$ ma&ing hard to earn a'ove average #rofit ( Be ide thi $ ElBulli ha forced the limit of the indu tr" tr"ing to 'uild u# higher and tronger

'arrier to entr" in term of &no%ledge$ techni?ue $ and e?ui#ment in order to &ee# ne%comer out of it egment and lo%ering the elevated com#etition$ #eculiar of the re taurant indu tr"( The

e@cellent ElBulliA 'rand identit" re#re ent another %a" to maintain high control over u##lier and to the decrea e the 'argaining #o%er of con umer ( Although the 'rea&)even trateg" of the com#an" ended u# %ith no #rofit and ometime lo e -'ut there are ver" #rofita'le 'u ine e related to elBulli/(

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BIB6IOGRAE8L D( Bell$ 3( ,helman$ #cademia )arilla$ 8arvard Bu ine +112( G( Barilla$ ntellectual and /uman -apital , The #ccounting of nnovation$ +112( ,( D" on$ R( 3c,hane$ =itchen 'eview$ +119( 4( 8arlan$ $olecular 9astronomy$ A'out(com! Coo&ing E?ui#ment$ +119( B( 3oor$ 9ourmet !ood$ +11D( G( Zenti$ The nternational !ood " #gribusiness $anagement #ssociation %ewsletter & #$# President 'eport$ +112( %ational 'estaurant #ssociation, :;<; 'estaurant ndustry & Pocket !actbook$ +111( 3.+. Pasta $arketing 'eport$ +11:( ,chool$ +112( ,chool$

R( Nolan$ ,( Notha$ /arley&.avidson* Preparing for the %ext -entury$ 8arvard Bu ine

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