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Bargaining power of consumers
It analyses the power wielded by consumers; their ability to affect quality, price, etc.
Consumers—in this case children—play a crucial role in Akshaya Patra’s initiative as they are the
organisation’s most important stakeholders. However, their bargaining power is weak as the
decision lies in the hands of the Government. If the Government decides that it will continue
with SHGs, children will eat meals prepared by them. If it decides to rope in Akshaya Patra, they
will eat meals prepared by the organisation. These children have limited information and they
will come into the picture when the Government conducts a study/survey to get information
about the quality of meals or Akshaya Patra takes the feedback from schools.

Bargaining power of suppliers
It analyses the power wielded by suppliers of raw materials; their number and effect on price.
Akshaya Patra depends on multiple sources for raw materials across all locations. The
abundance of suppliers reduces the impact they have on the organisation’s activities. There is
no scope for single supplier to dictate terms for the organisation. It is safe to say that suppliers
have a moderate to weak influence on Akshaya Patra initiatives. LEARNINGS

Threat of substitutes
It analyses competitor’s service/product and the likelihood of consumers switching.
For Akshaya Patra, the threat of substitutes is weak considering that it will enter Goa after
signing an MoU with the State Government. It is unlikely that there will be any knee jerk
reaction on the part of the Government to replace Akshaya Patra with any other organisation or
bring back SHGs.

Threat of new entrants
It analyses the likelihood of new competitors entering the market.
Even the threat of new entrants is weak in this case because school lunch is a not-for-profit
venture and Akshaya Patra has a strong authority in the MDM space.

The success of an organisation depends on its ability to innovate, and that, in turn, depends on
the willingness to learn. Learning is a continuous process and involves feedback, knowledge
sharing, and even the information acquired by systematic study. It boosts productivity
and maximises the impact—the latter making it all the more important for non-profit
Conclusion organisations with the welfare of a community at its heart.

Based on this Five Force
Analysis, it is clear that 6.1 One important aspect of the organisation

industry rivalry is the

issue of concern for Optimising Capital Expenditure - Akshaya Patra’s Hub-and-Spoke Kitchens
In 2000, Akshaya Patra began its Mid-Day Meal Programme with the feeding of 1,500
Akshaya Patra in Goa. children of five schools in Bengaluru, Karnataka. Meals were prepared at the centralised
As far as other forces are kitchen in the city and delivered to these schools. Over the course of time, the word about the
initiative spread, thus prompting authorities of other schools to approach Akshaya Patra with
concerned, they exert request to deliver food to their schools.

a weak influence or While Akshaya Patra obliged, the increase in number of beneficiaries brought about the need
moderate to weak as in to leverage technology to optimise the process. The end result was a standardised design

case of bargaining power which could be implemented elsewhere. It served as a template for the kitchens to follow.
Innovation continued alongside and eventually the Foundation was able to set up kitchens
of suppliers. with the output capacity of 100,000 meals.

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