Business Strategy

 

Porter's Five Forces Model                                                            

Bargaining Power of Customers	MODERATE	There is a lot of gas stations within a mile from Cranford Wawa. But only 2 of them offer build to order food and beverages. Therefore customers have a moderate bargaining power depending on what they are looking for.
Threat of Substitutes	MODERATE	Electric cars are becoming more and more popular, soon gas stations might not be as needed.  When it comes to food/beverage WAWA is offering a great experience and high value for the money customer has to pay.
Bargaining Power of Suppliers	HIGH	Wawa does have a limited number of local and international suppliers. The restricted number of suppliers is due to contractual agreements, which also can lead to high switching costs.
Threat of New Entrants	LOW	The threat of new entrants in Cranford is very low. It requires huge financial investment. Also, getting a construction permit for another petrol station would be almost impossible, because there already is a lot of them in town.
Rivalry	MODERATE	Even though there is a lot of similar businesses in the Cranford area, WAWA is a dominant player. It has great brand recognition and a loyal customer base.

Competitive Strategy

    

    Wawa’s competitive strategy would be focus cost. Wawa primarily operates out of the northeast portion of the U.S. with its primary competitor being Quickchek. Wawa uses their competitive strategy to get customers to buy more in their store. Wawa in recent years has also addressed consumers’ preferences by adding more variety to their menu. Wawa in recent years has added burgers, bowls, burritos, and pasta to their menu. They also promote limited-time deals and seasonal favorites. They do this while keeping the process of ordering easy and the prices low.

Value Chain

Inbound: Wawa’s inbound logistics are all the products they get in on a daily basis to stock their shelves and all the raw materials to make freshly produced products.

 
Operations: Wawa takes their raw materials and produces products that are made fresh that morning or are made to order. Wawa has the shelves stocked with a variety of products and fresh goods.

Outbound: Wawa’s does not have any outbound logistics because they do not distribute products to customers.

Marketing and Sales: Wawa uses push-pull marketing strategy, typically promoting coupons or deals in store. Wawa is a convenience store/ gas station, so the company does not have to market themselves too much because customer are always coming and going to get gas.

Services: Wawa looks for customer feedback through their app and makes sure that their store remains organized and clean. This allows customers to quickly grab what they need and want efficiently and effectively.