Introduction
The value chain model is based on the idea that any product or service on the market is bought only because it has some value. The buyer is interested in this value and is ready to pay the price for it. In this concept, any business looks like a process of creating the value of a product, which can be decomposed into a chain of individual company actions.
There are several links in the value chain at Bloomin’ Brands. All restaurants of the brand have strategically essential activities. Many brand restaurants specializing in certain dishes or cuisines are the sources of differentiation of Bloomin’ Brands’ business.
Cross-Business Opportunities
Transferring Skills and Technology
Due to the similarity of the activities of the restaurants of the Bloomin’ Brands chain, there is an opportunity to exchange experiences between them in terms of skills and technology. First of all, these are unique cooking technologies belonging to the network. For example, Outback Steakhouse and Fleming’s Prime Steakhouse & Wine Bar exchange technology and recipes for cooking steaks, and Carrabba’s Italian Grill and Bonefish Grill exchange technology for grilling (Manoharan et al., 2021). With the successful implementation of specific skills or technologies in one of the restaurants, it is more likely to be tested in other chain restaurants. For example, a new device for cooking fish in Bonefish Grill, which proved profitable, was implemented in Carrabba’s Italian Grill.
The purposeful creation of internal platforms for exchanging experience opens up new opportunities. With their help, Bloomin’ Brands provides access to the expertise accumulated in the company to a larger number of employees, teaching employees of the chain’s restaurants the recipe for cooking and the corporate norms common to the chain (Manoharan et al., 2021). In addition, the exchange of experience formed a corporate knowledge base regarding customer service, which allowed me to increase my customer service and cooking skills.
Combining Value Chain Activities
The five main components in the value chain are necessary to increase the value of goods or services and create a competitive advantage for the company. Bloomin’ Brands unites them by creating adjacent chains to achieve economies of scope. The first link in the chain—initial logistics—includes receiving, warehousing, and inventory management (Koutroumanis, 2019). Restaurants in the immediate vicinity may have one common warehouse. This is due to the great convenience of storing goods and the ability to find and equip one room for food storage instead of several warehouses.
In addition, Bloomin’ Brands also combines elements of the value chain, such as marketing and sales. Advertising, distribution, promotion, pricing, and other strategies to increase demand for a company’s product or service are made in the same style. This is done to maintain the brand’s reputation and create a name. In addition, hiring specialists who run several restaurants in the same style is more profitable than having a separate marketing manager for each.
Maintaining the company’s product and improving customer interactions, such as repairs, refunds, and other services, is also an adjacent link in the value chain (Manoharan et al., 2021). Bloomin’ Brands designs its restaurants in the same style and uses similar technological equipment. Therefore, these components are advantageously reorganized and divided between different restaurants.
Enhancing Differentiation
Brand differentiation occurs after implementing a brand strategy based on a unique trade offer. It exists for each of the restaurants of the Bloomin’ Brands chain and is associated with the peculiarities of each of their cuisines (Koutroumanis, 2019). Due to differences in taste preferences, the target audience is slightly different, which causes the differentiation of restaurants. For example, Outback Steakhouse specializes in cooking steaks and is differentiated into a male audience, predominantly male bachelors and football fans.
Carrabba’s Italian Grill is the most family-friendly of the presented restaurants. It specializes in Italian cuisine and has the largest number of menu items for children. Bonefish Grill is mainly aimed at a female audience and people who watch their food (Koutroumanis, 2019). Fleming’s Prime Steakhouse & Wine Bar is the perfect choice for dating, and it is most often visited by couples (Koutroumanis, 2019). Thus, by differentiating its restaurant chain, Bloomin’ Brands addresses a larger segment of the audience visiting restaurants.
Conclusion
Thus, Bloomin’ Brands’ value chain relationships can be characterized as interconnected and complementary with a single vector of development. The exchange of experience, forces, technologies, and a unified marketing strategy allows the creation of more economic benefits with the investment of fewer resources. Meanwhile, the integration of warehouses and supply chains allows for better control of the products’ quality. It pays more attention to developing cooking technologies rather than solving logistical problems. At the same time, restaurants are not interchangeable due to differentiation, since each has its own target audience.
References
Koutroumanis, D. (2019). Motor City restaurant dilemma: Decision of IPO or not? Journal of Business and Entrepreneurship, 30(2), 73-104. Web.
Manoharan, A., Madera, J. M., & Singal, M. (2021). Walking the talk in diversity management: Exploring links between strategic statements, management practices, and external recognition. International Journal of Hospitality Management, 94(1), 102864. Web.