Fast Food Market in Canada Economics

The following case study is in regards of economic market structure. In the world of economics all businesses or companies rather, are categorized in certain market structures such as monopoly, oligopoly, or perfect competition, for instance, the market structure for restaurants. Most restaurants are considered monopolistic competition. Being that they all sell and serve food. They have to have instances that vary such as price, logos, servers, locations, décor, types of food, and hospitality.

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

McDonald’s make a poor business decision when they had the consumer purchase the fries as well as the drink in order to receive the promotional price. In this particular economy, if McDonald’s was smart, they would have created a new promotion and merged into it before the competitors had realized what was going on. This would have given McDonald’s a clear advantage. With this particular move, several problems were present in utilizing game theory to predict their profits. With the onslaught of fast-food corporations, McDonald’s has endless rivals in the burger world. This being the case, just reducing prices of a product will not do anything for

How does fast food affect America’s economy? Does fast food affects Americans economy in the bad way or good way? Some people say that fast foods are ruining Americans economy. They want to reduce effects of the fast food industry in America. However, the advocates do not agree because they think that fast foods are giving a major boost to the economy. They give out a few examples about the advantage of fast food to the economy such as proving jobs or helping America’s agriculture by purchasing agriculture products. In my point of view, the fast foods are affecting American economy negatively, which can be seen through the average wages of Americans, the cost of medical care for fast food

Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure positively and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the

Potential entry of new competitors is rendered low for the grocery retailing industry. Puregold, SM Hypermarkets, Rustans, and Robinsons Supermarkets are amongst the top key players in the game. The entry of new competitors could be very low because of the huge capitalization funds that this industry requires. In addition, the industry has been long time dominated by the giant players that had already well established and positioned their brands throughout the country and that they had already spread out with branches in Metro Manila and other regions.

McDonald's franchise operates in oligopoly market since the fast food industry is one of the major industries with this type of markets. Some of the common features of oligopolistic markets are price rigidity and price war that have significant impacts on the firm's pricing strategies. The reason for the operation of this franchise in oligopolistic markets is that fast food industry is characterized by a small number of large producers or sellers. As a result, every large seller in the industry has a perceptible impact on other sellers as they influence the market.

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

To collect secondary data about the USA fast-food restaurant business, in order to determine McDonald’s market share, which are its competitors, and what changes have they done in their marketing strategies.

According to Restaurants Canada more than one million Canadians are working in the vibrant restaurant and foodservice industry, the first job for 22% of all Canadians is in the food service industry (Restaurants Canada, n.d). Canada’s restaurants employ over 500,000 under the age 25 (Health and Safety Report, 2016). Although it is generally considered safe to work in a fast food industry setting it is important to note that there are several hazardous equipment, chemicals and risks that should be taken into consideration and paid attention to by both employers and employees. The laws that govern health and safety in the workplace provide a minimum level of protection that must be maintained. Employers are encouraged to exceed these minimum

Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market. The characteristics of perfect competition include: large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is the price taker. Many fast food franchises fit all or most of these characteristics.

Within the United States, 12.7% of households had been food insecure at some point within 2015, meaning that not enough money was had to spend on food. ("United States Department of Agriculture Economic Research Service", par. 3) With this in mind, one of the largest problems when it comes to nutrition in the developed countries of the world is the availability of nutritious food to the lower classes because lower quality processed food is easier to obtain than nutritious food. This only seems to be a trend within developed countries so this argument will only focus on the developed countries such as the United States and France. Underdeveloped countries are left outside of these studies as they do not have widespread statistical values for any of their nutrition at any of the levels of

Today's food prices are so outrageous. Over the years food has gone through so many changes. Everyone used to be able to eat healthier, but then because of genetically modified organisms (GMO) , monosodium glutamate (MSG), and other food that was tainted by chemicals and made into junk, have taken over our stores. Today there are so many fast food restaurants that can cost up to three dollars a burger. Everyone is getting unhealthy in so many ways.

The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer.

On the other hand, buyers were more increasingly focusing on value and healthy foods. This condition can force McDonald and its competitor to offer product innovation that can attract the buyers and match with the buyers' requirements.