During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.
As our goal is serving high-quality food at an acceptable value, general manager will work on this constantly. The first half year will be seen as an introduction process. Later one it is planned that further stores are built upon other crowded malls. There is a huge competitive environment in fast food restaurant and it is difficult to differentiate one fast food restaurant from another but we will do our best to be known as a successful fast food brand with innovative ideas. Gusto will enter to the fast food market which is already competed, but with the new kind of process and better fast food products are able to compete with the existing brands.
Investors in Wal-Mart were aware of the obstacles that the giant retailer would face due to the changing consumer preferences and behaviors. However, the financial reports showcased that its online strategy was successful. At the end of the second quarter in 2017, Wal-Mart reported revenue of $123.4 billion, which was an increment of about 2.1% over the previous year quarter. There was also an increase in comparable sales by 1.8% year over year. Wal-Mart has significantly focused on structuring its online sales, while using its already well-established brick and mortar stores and excellent supply chain and logistics to its big advantage.
Initially began by Motorola as a general way to deal with measuring quality in business performance terms. Presently it has developed to deal with process improvement that takes after the five stage process known as the DMAIC cycle. Nonetheless, studies have demonstrated that over the last ten years applying the Lean Six Sigma can make issues for organizations financially and potential issues for representatives. Organizations ought to take extraordinary consideration before executing a Lean Six Sigma arrangement on the ground because sometimes going lean can accomplish more damage than good. Six Sigma concentrates on enhancing current business operations and production while Lean Manufacturing concentrates on the change of the operations of an association by utilizing profoundly gifted workers to enhance quality and speed.
However, the bargain power of suppliers in fast food industry is consider low. There are many suppliers supplying ingredients to the others. If one of the supplier offer too high price, Take-A-Box may consider to find others. Moreover, Take-A-Box may sign contract for a year with the supplier that both of us agree the deal. In this case, Take-A-Box have to maintain a good relationship with the supplier by communicate with the supplier regularly through phone calls, whatsapp or gathering
Evolution of Fast Food Fast food companies have eradicated competition throughout history in the restaurant industry. The practices used to eradicate competition such as using unhealthy food to make a profit have been reported unethical by Americans but tend to be desired to the American society. According to the American Franchise Corporation, certified by TrustArc, fast food companies generate $570 billion annually in the United States ("Fast Food Industry Analysis"). These statistics continue to inflate as more and more fast food companies become ubiquitous. As a result, fast food companies get richer, while people become contracted with life altering health effects.
A stronger dollar translates to reduced profits from foreign operations. Ø High level of competition from other quick-service restaurant brands. The quick service restaurant brands such as the Burger King, McDonald's, and Starbuck pose a significant competitive threat. Majority of the companies in the industry have increased their reach in foreign markets and experienced a larger market share. Therefore, Dunkin Donuts has to improve their strategies to increase sales.
The hospitality business is fiercely competitive. When McDonald’s began its increased growth in the 20th century, few alternatives exited allowing them to have some starting advantage and monopoly until others joined. With domestic growth slowing down, the brand began increasing its efforts and investments outside US. This encouraged other brands to follow and made other domestic brands to also develop and capture market share before the American giant begins to get a foot hold. This improved the whole fast industry and allowed customers more choice and variety.
Some of major competitor are Linen Club, Louis Phliph, Levi 's. 4.4 Competition We have an oligopoly competition in the market. According to this competition we have a lot of sellers selling similar products having wide range of customers. It is difficult to survive with high profit in the market because the previously entered businesses have flurished well in the market. It is difficult to have a straight competition as it will result in gradual economic decline of business.
The Singapore food and beverage is no doubt growing however it does not mean that as a business owner are surely gain from its businesses. The rental cost is usually killer factor in Singapore due to limited land. Many food entrepreneurs will comprise on location due to cheap rental but then come to regret it eventually. The general rule for costing of raw material, it should not exceed 35 percent of overall gross sales. As yogurt entrepreneurs, basically you have to employ at least one full timer to run the shop and weekend can consider to employ one more part timer to serve the crowd.