The Competitive Landscape Of The Quick Service Restaurant

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The Competitive Landscape Companies in the Quick Service Restaurant (QSR) industry compete mainly on efficient operations and effective marketing. Usually, large companies enjoy advantages over small companies in terms of purchasing, finance, and marketing. But small companies can still compete by improving their products and services. The US is the global QSR market leader, taking 20% of global industry revenues (Hoovers). According to Porter, an industry has to have sustainable profits for firms to foresee in order to make firms profitable and successful (Porter, 3). However, according to our research the QSR industry is in danger of reaching unsustainable profit margins if industry leaders fail to adapt their business practices to this volatile market. The dining culture has changed over the years as people have become more aware of healthy eating lifestyle. This trend is expected to continuously dictate future market demand. Another factor to determine a company’s success mentioned by Porter’s is industry positioning (Porter, 1985). The position in the industry is crucial for companies who have empathies for their customers’ health. Many of them are not dominant firms in QSR industry and some of them are emerging in the industry. They need to find the exquisite balance in terms of market positioning to incept their success. Porter’s Five Forces Porter’s five forces will have a great impact on the company we chose and the industry as a whole - the threat potential

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