Fast Food Industry

1506 Words7 Pages
Table of Contents:

1) Executive Summary ………………………………………………P.2
2) Industry Structure Analysis ………………………………………P.2
3) Five Force Model ………………………………………………….P.3
4) Comparative industry structure analyses ……………………….P.5
5) Critical Success Factors Now ...……………………………..……P.5
6) Critical Success Factors in Future...………………………..…….P.7
7) Conclusion …………………………………………………………P.8
6) Appendix ………… ………………………………………………..P.9

Executive Summary:
Hong Kong is a city in which efficiency and speed are demanded and expected. This living style affected the eating habits of Hong Kong people. People tends to dinning out and are more interested in prepared food which can be served quickly or allow them to take away in order to saving time, fast
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By comparing the location, price, taste and environments of the restaurant, people can choose what type of restaurant to go. As a result, consumers do have high bargaining power that they do not have high switching costs.

Suppliers Power:

In Hong Kong market, there are so many food suppliers and food distributors which often supply raw food materials to catering, for example, local fresh fish markets. Their principal activities are supplying food to ultimate consumers. Moreover, most of the raw materials are imported, according to the Food and Environmental Hygiene Department, over 90% of food is imported from other countries. Unless the main ingredient of the product is not available, the bargaining power of suppliers of fast food industry would be therefore relatively small. The industry has very strong negotiation position for the raw materials and with low switching costs.
Comparative industry structure analyses
This costly barrier is the most probable reason that people do not enter this business. The food-service industry doesn’t have any exit barriers, which allow firms to easily leave the industry if they’re not successful, at virtually only the cost incurred.
Appendix 3. indicates a summarize of the power of each force on five axes of fast food industry. Power is low as the axes go outwards. On the other hand, the force is high where the axes go inwards. The total
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