3.0 Porter’s five forces Threat of New Entrants The threat of new entrants‚ both potential and existing competitors influences average industry profitability. The threat of new entrants is usually based on the market entry barriers. Some of the barriers include cost of entry‚ the cost you need to bear in order to enter the particular market. Rules and regulation set by Government may also considered barriers for new entrants to enter markets. The operations of McDonald’s Malaysia are affected
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THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY Porter on his 1979 HBR article states 5 competitive forces that can hurt your desired profits: 1. Established rivals (old competition) 2. Understanding the customer (their needs and desires) 3. Suppliers (how to make it less expensive) 4. New players (new or temporal competition) 5. Substitutes (other services or products that may replace ours) If the forces are intense‚ companies don’t obtain attractive returns for their investments. If forces
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price and high quality dinners. The opportunities and threats are mainly the same for that strategic group‚ the entry into another group might be desirable and would result in a diversification strategy. Industry Structure According to Porter’s Five Forces Model‚ the restaurant industry is highly competitive. The rivalry among established companies is
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[pic] PGCIM Unit 1 Assignment Kelly Moore December 2009 Should Rimi Baltic expand into the United Kingdom as a Discount Grocer? Word Count: 2473 Introduction: Rimi Baltic is the 2nd largest retailer in the Baltic States at 20.6% grocery share‚ behind VP Market who lead the market with 22.6% share (1). As a subsidiary of ICA Baltic AB (13.9% of sales)‚ Rimi Baltic focussed its growth in Lithuania and Latvia‚ allowing period of underperforming in Estonia
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Five Forces Model Rivalry Among Firms: Currently in the fast food industry‚ there is intense competition for growth in the market. The market growth is rising because of the convenience factor and busy consumers not having enough time to cook a meal. The restaurant industry is also growing rapidly due to opportunities in other global markets. In McDonald’s case‚ they actually have a competitive advantage because they have already entered many different countries and are succeeding in these countries
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Both concentrate and bottling businesses are interrelated‚ because they create one product‚ but at different stages‚ they have the same consumers‚ however‚ there is a big difference in the structure and most significant is gaining profitability. 5 forces structure of both businesses would help to explain the phenomenon: The power of suppliers: Concentrate and bottling producers would need sugar and corn syrup‚ flavors‚ sweeteners‚ packages and some other additives suppliers. However‚ they are not
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Frozen Food Five Force Analysis 1. Bargaining power of suppliers < Low > In food business‚ there are plenty of suppliers who sell raw material such as vegetables‚ meats‚ and other ingredients that used in the process of producing frozen foods. Since lots of supplier who sell the same kinds of raw materials‚ all of these suppliers must compete against each other to get the customers because we have the same target market. They suppliers sell them at the low price because when the frozen
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Apply strategies to foster criticism in problem solving To solve a problem‚ we need to have all the information we can gather so that it can be completely digested. 1.The first is to say to yourself‚ before you begin to take a critical look at any idea‚ “I know this idea is going to look good to me and that I am going to feel it’s pointless to look for flaws. That’s natural. I thought of it‚ so I want it to be perfect. But I’m going to disregard this reaction and force myself to examine it critically
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chain of hamburger fast food restaurants‚ daily serving around 68 million customers in 119 countries. (mcdonalds.com & burgerbusiness.com) In the year of 2011‚ the net income has reached 27 billion USD with net profit of 5.5 billion USD. In the recent five years‚ McDonald’s revenue kept increasing and the average increase rate was 3.1 %.( McDonald’s annual report‚2011). Subway which is owned and operated by Doctor’s Associate is an American restaurant franchise which mainly sells sandwiches and salads
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