"Running Head: USE OF PORTER’S 5 FORCES AND VRIO THEORIES INRESTAURANT AND BARSAssessing How Restaurateurs and/or Bar Managers Can Use Porter’s Five Forces and VRIOTheories to Achieve Long-Term Competitive AdvantageUSE OF PORTER’S 5 FORCES AND VRIO THEORIES IN RESTAURANT AND BARS2Table of ContentsIntroduction ................................................................................................................................ 3Porter’s 5 Force Model .............................................................................................................. 3VIRO Analysis ........................................................................................................................... 7Developing the Long Term Benefits for Restaurants and Bars ................................................. 8Conclusions .............................................................................................................................. 10References ................................................................................................................................ 11USE OF PORTER’S 5 FORCES AND VRIO THEORIES IN RESTAURANT AND BARS3IntroductionAny business in a competitive market strives to achieve the best of business outcomewith maximum utilization of its resources. The Porter's 5 Force Model gives the business anidea of the market in which it operates and uses the competitive forces for best of businessoutcome. The VIRO model is the model that stands for Value, Rarity, Imitability andOrganization which helps the company to find its powers and vulnerabilities. The restaurantand Bar business are a business which is very competitive, and thus the best utilization of thebusiness resources makes a difference between one to another. The report would identify howthese two models can be used by the Food and Beverage service sector to gain the best ofbusiness outcomes. Porter’s 5 Force ModelThis model is termed as an outsider's view of the business. Thus it identifies thestrategies and tools that the business uses to enhance its attractiveness and value in the sector.There are five fundamental elements of this model which are as follows.The Entry of the Competitors: This is the measurement of ease or difficulty for a newbusiness entity to enter a market. This depends upon the cost of investment, workforceresources along with brand building activities needed to make space for itself in a newmarket. This is the market where there may be entry barriers or even ease of entry dependingupon the policies and resources needed to enter a new market. Therefore, a restaurantbusiness already operating would make it difficult for the new entrants as it has its share of amarket. To beat it the new entrants has to do everything possible to build its set of clients inthe new market(Amrollahi & Akhgar, 2013). "