Competitive Analysis
Analysis the Porter’s Five Forces model
1. Supplier Power: For industry, the supplier’s power mainly depends on the supplier industry market conditions and they offer items. In KFC, for example, beverage supplier mainly PepsiCo, meal suppliers also have specific manufacturers cooperation; KFC suppliers mainly raw materials suppliers, because food is potatoes, chicken, bread, etc. KFC can easily switch their supplier to another supplier since the materials need in the process of producing KFC is easily to get such as chicken. In 2004, KFC chicken supplier in negative impacts, KFC decided to terminate the contract between them, and instead of looking for new suppliers So, chicken supplier can’t easily increase the price
…show more content…
Competitive advantages of the organization
Fast food is the product of the high speed society. With fast food, one can spend less time in having dinner and more time in working, which means one can make more money than before. Meanwhile, fast food always comes out in the form of convinience. Wherever you go, you can take fast food along with. That is to say one can have lunch on a bus or subway. How nice! The last and most important feature of fast food is the advantage of its price. We compare the KFC and McDonald 's analysis why people still eat at KFC even though got other fast food chain in Singapore.
KFC: Located in the "member of the family consumption", offering a family reunion warm dining atmosphere. The unique taste of KFC 's market advantage for commodity, such as chicken, corn soup, buckets, etc. The setting wall of KFC is mainly developing course.
McDonald’s: To appeal to young, lively, hope to provide a lively dining environment to appeal to young, lively, hope to provide a lively dining environment, McDonald 's market advantage is clean, fast, quality, service, value. The setting wall of McDonald 's is children 's
…show more content…
.
KFC: KFC take-away service has its own domain name, in order to order a meal, on the page to remove a lot of pictures, browsing speed as a whole. All meals are concentrated in a form to be delivered to the outside, scrolling can quickly browse each meal. If in the header section of the web page, fill out the last name, city specific address and email, web page will also show the food price, and can be directly calculated on the net amount, very convenient., of course, if you cannot fill in the header will be able to use this feature, KFC 's ordering system will be more convenient to use.
McDonald’s: McDonald 's delivery service all the prices of all the meals and the corresponding marked by pictures, so their connection is super slow. The most depressing is that McDonald 's opened so slow, incredibly still divided the food into a number of different categories, each category of display should wait for the page refresh at least 2 minutes. In other words, if not directly point meal into a staple a snack, a drink alone waiting for web content shows that there is at least 6 minutes, very not respect. KFC mainly chicken; McDonald 's has beef and chicken, We compared to KFC and McDonald 's menu found that KFC products far
Travelers who go places to visit family, or any other reason, gets hungry and would like to see a familar fast food restaurant they can go to everytime they travel. As Visser said “When a huge modern business conglomerate offers fast food to travelers on the highway, it knows that its customers are likely to desire No Surprises. They are hungry, tired, and not in a celebratory mood; they are happy to pay—provided that the price looks easily manageable—for the safely predictable, the convenient, the fast and ordinary”(129). The restaurant that is known for travelers to stop at when tired and hungry is McDonalds. You can find a McDonalds about anywhere you go in the world and its always fast service most of the time.
Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.
6 Bargaining Power of Buyers…………………………………………………………….. Bargaining Power of Suppliers…………………………………………………………... Threat of Substitutes……………………………………………………………………... Financial Analysis Balance Sheet………………………………………………………………………… Income Statement……………………………………………………………………… Dupont Analysis………………………………………………………………………. Liquidity Ratio…………………………………………………………………………
1. Supporting point 1: Nowadays we can see these fast food restaurants in almost every shopping mall and there is at least one of these franchised restaurants in each area of the city and still increasing in number because of the high demand. a. Sub-supporting point 1: Although there are lots of choices of food inside a mall, but people often choose fast food as it is affordable and yet it is tasty and filling at the same time. b. Sub-supporting point 2: For example, in the Kuala Lumpur International Airport, there are a lot options of food to choose but the two franchised McDonalds are still always
Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.
BACKGROUND: Deliveroo is a British online food delivery company that operates in the UK, the Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Dubai, Australia, Singapore & Hong Kong. It was founded by two childhood friends Will Shu, who has a background in finance, and developer Greg Orlowsk in 2013. This unique idea arose to founder, Will Shu, when he moved from New York City to London to work as an investment banker and was dissatisfied by the food delivery options. He witnessed that customer’s choice was limited only to restaurants that already provide a takeaway service. Thereby, he analyzed the opportunity to exploit the niche market by creating partnerships with higher-end restaurants.
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
PORTERS FIVE FORCES ANALYSIS - PHARMA INDUSTRY Using Porter's Five Forces we can analyse the scope of the pharmaceutical industry. It looks into five factors namely, competitive rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of customers. " Competitive rivalry: The pharmaceutical industry is highly fragmented with almost 3,000 pharma companies and 10,500 manufacturing units. Due to increasing demand of high-quality drugs, low-to-moderate entry barrier to the new entrant, the presence of a number of large and small firm this market is highly competitive.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve.
Porter’s five forces model To analyse the microenvironment facing United Biscuits in China, Porter’s five forces model is selected to provide an understanding of the competitive forces, to determine the competitive position of the company and profitability within the biscuit industry whilst offering a framework for predicting and influencing competition over time (Porter, 2008, p.80). The findings are explained below: Threat of new entrants • The high capital cost required for investing in developing distribution, sales network and acquiring production equipment could deter new entrants. The barriers are high when capital is necessary for unrecoverable expenditures such as marketing and product development capability which is difficult for new entrants to succeed in the short-term (Euromonitor, 2014; Porter, 2008, p.81).
According to TrackMaven, market segmentation is the process of dividing the market of potential customers into groups, or segments, based on different features. The created segment consists of consumers who will respond to the same marketing strategy and who share the nature of the same interests, needs, or locations. McDonald uses demographic segmentation as their main types of market segmentation. According to Sakshi Natani (2016), McDonald in Malaysia used mainly demographic segmentation, which divided in age, income, family-life cycle and social class.
The price strategy which KFC is currently adopting is geographical pricing. It is because the menu prices is set differently in each country. For example, KFC Malaysia snack plate is priced at RM 5.95 while snack plate in Singapore is priced at SGD 6.40. Generally, they use market penetration pricing for new products. KFC sets their price slightly lower as compared to their competitors in order to entice customers away from their competitors.
This is a huge market since the U.S. and the world revolved around convenience. Although McDonald’s is very popular right now you never know if one day it will become a shadow to another company. Next, since there are so many competitors each company is trying to be unique and bring new things to the market. Whether it is McDonald’s McPick 2 or Wendy’s 4 for 4 competitors are trying to out shine each other, making it hard to compete and keep prices down sometimes. With a quick google search I found that there are over 50,000 different fast food chains in the United States alone.
Background of KFC KFC was formerly known as Kentucky fried chicken and headquartered in Louisville in United States. Founded Colonel Harland Sanders, KFC is known mainly fried chicken, which is usually served in a bucket. KFC is one of the few brands in America that become the rich, decade’s long history of success and innovation. It all started with one cook who created the famous recipe in the world soon to be more than 70 years ago, there are more than 18,000 KFC outlets in 115 countries and territories worldwide (wisnudewobroto, 2016).
Secondly, Porter’s Five Forces Model is used to analyse the level of rivalry in the market, the attractiveness for potential new entrants, the power of suppliers, the power of buyers and the threat of substitution. This will allow us to see a holistic view of the industry in the market environment. Thirdly, the PESTLE framework is used to analyse the factors within the macro environment that are influencing