Nandos Micro Environment

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Executive Summary

This report complies of an extensive study of Nando’s South Africa. A brief background of Nando’s is provided. A SWOT analysis is used to scan the micro environment of Nando’s to identify the businesses strengths, which should be exploited to gain a competitive advantage, weaknesses, where strategies need to be implemented so not to lose customers , opportunities, where strategies to exploit these ideas to gain a competitive advantage need to be identified and implemented and threats, where strategies need to be implemented so the business is not negatively affected. The Porters Six Forces model is used to scan the challenges Nando’s faces in the market environment by looking at level of rivalry in the market, the threat
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Fernando was from Porto, Portugal, and his family had emigrated to South Africa. The restaurant was then named after Fernando himself, and his son, who is also called Nando. The first restaurant was opened in Rosettenville, Johannesburg. The first international store was opened in 1992 in Earling West London. By 1997 there were 71 stores in South African and 46 stores worldwide and in 2012 the 1000th store was opened worldwide. As of July 2014, the Nando's restaurant group is ultimately owned by South African businessman Dick Enthoven and his family. Enthoven's son, RobbyEnthoven, was responsible for expanding the Nando's chain in the United…show more content…
Nandos has many direct competitors such as KFC , Chicken Licken and Afros Chicken. Steers is a new direct competitor for Nandos as they have started to sell half and full flame grilled chickens just like Nandos. KFC has a thousand stores nationwide which means they are more conveniently located compared to Nandos and this is a threat to Nandos.

The availability of substitute products
A substitute product is a different product that satisfies the same need. A substitute product for Nandos is ready made chicken from supermarkets like Woolworths. This could deter customers from choosing to buy from Nandos as the chicken that is ready made from the supermarket can be perceived to be healthier as well as more convenient as it is ready made and there is no need to order and wait where as customers would at Nandos.

Threat of new entrants to the market
It is not only current competitors that steal customers. New businesses entering the market also create challenges in the market. A new entrant in the market Nandos operates in is Afros Chicken. This new brand has started in and gained popularity in KZN and is quickly spreading through South Africa with the brand now having stores in many areas around the country, including Johannesburg. The Afros Chicken menue is very similar to the Nandos’ menu and this is why they are a competitor for

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