Topics: Fast food, Food, Fast food restaurant Pages: 3 (656 words) Published: May 19, 2013

A promotional strategy for the MTR

What is the five force analysis of Wellcome?
Porter's 5 force analysis
what is the barganing power of the buyers? High, little choice of supermarkets.

what is the bargaining power of the suppliers? High bargaining power of Wellcome, they can get more discount from suppliers because they have chain of store.

what is the threat of the subsitutes? (Shopping in websites, 7-eleven, OK)

what is the threat of new potential entry (competitors)? Jusco / 華潤

what is the competitive rivalry? Parkner (百佳) / Jusco/ citysuper / 華潤

Fast Food market
Porter 5 forces analysis
1)         Threat of New Entrants  
Threat of new entrants into the Fast Food market within Hong Kong is high as there are few proprietary product differences and the cost to enter the market is relatively low. It is assumed that skilled labor would be easily accessible at a reasonable cost given Hong Kong is in a position where GDP/GNI is still low and growing.  

Large established companies with strong brand identities such as McDonald’s and KFC do make it more difficult to enter and succeed within the marketplace, however, given the country is yet to be saturated with fast food restaurants there continues to be opportunity. The newcomer to the Hong Kong market could find that they are faced with price competition from existing chain restaurants.  

2)         Bargaining Power of Buyers
It is expected that consumers in HK do have some bargaining power in that they can choice what type of fast food restaurant they want to go to. However, location and type of food may reduce this bargaining power. Given the small purchase size of consumers it would be necessary to appeal to more people in order to be successful, and as a result fast food restaurants would most likely not do well in remote areas. As consumers would not have access to the same equipment and food supply that...
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