Strategic Analysis of the Uk Fast Food Industry
Business and Management Strategy
BAM6012
A Strategic and Competitive Analysis of the UK’s Fast Food Industry
Executive Summary
The food industry in the UK is a multi-billion pound industry that is mainly dominated by a few competitors such as McDonalds, Burger King, KFC and Subway. Most of the food sold in these fast food restaurants is unhealthy, which is becoming a huge concern as there are many people dying of obesity and other health related problems. This is one of the key social factors facing the fast food market at the moment.
The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals each with similar products. Information about any of the competitors is freely available. The industry does have a few characteristics of an oligopolistic industry too as there is a couple of companies that have the main market share and have power over the buyers and suppliers.
The main features that influence a firm’s ability to compete and gain profitability depend on who their main competition is. For example there are different strategic groups in the industry such as McDonalds and Burger King who compete at the top of the industry and single privately owned fast food retailer that compete on a much lower level with much smaller budgets.
The customer requirements are very low in this industry as a lot of the products sold by different firms are very similar; however the requirement of a cheap and fast meal is always at the top of their needs.
Any potential strategy to increase profitability within the industry will need to be assessed properly and to realise the risks involved and other potential threats to it.
Table of contents Pg.
Executive Summary………………………………………………………………………… 2
Introduction…………………………………………………………………………………… 4
History of
BAM6012
A Strategic and Competitive Analysis of the UK’s Fast Food Industry
Executive Summary
The food industry in the UK is a multi-billion pound industry that is mainly dominated by a few competitors such as McDonalds, Burger King, KFC and Subway. Most of the food sold in these fast food restaurants is unhealthy, which is becoming a huge concern as there are many people dying of obesity and other health related problems. This is one of the key social factors facing the fast food market at the moment.
The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals each with similar products. Information about any of the competitors is freely available. The industry does have a few characteristics of an oligopolistic industry too as there is a couple of companies that have the main market share and have power over the buyers and suppliers.
The main features that influence a firm’s ability to compete and gain profitability depend on who their main competition is. For example there are different strategic groups in the industry such as McDonalds and Burger King who compete at the top of the industry and single privately owned fast food retailer that compete on a much lower level with much smaller budgets.
The customer requirements are very low in this industry as a lot of the products sold by different firms are very similar; however the requirement of a cheap and fast meal is always at the top of their needs.
Any potential strategy to increase profitability within the industry will need to be assessed properly and to realise the risks involved and other potential threats to it.
Table of contents Pg.
Executive Summary………………………………………………………………………… 2
Introduction…………………………………………………………………………………… 4
History of
Bibliography: * Fast Food Industry Profile: The United Kingdom’ 2012, Fast Food Industry Profile: United Kingdom, pg 1-35, Business Source Premier, EBSCO host, viewed [25/11/2012] * Murray-Webster, R. (2010) Management of risk: guidance for practitioners. The stationery office: Norwich * Dennis Campbell (2012) ‘Fat Tax’ on unhealthy food must raise prices by 20% to have effect says study. (01/12/2012) http://www.guardian.co.uk/society/2012/may/16/fat-tax-unhealthy-food-effect * Office for national statistics (2012) Key figures. (02/12/2012) http://www.ons.gov.uk/ons/key-figures/index.html * BBC (2012) UK inflation rate slows to 2.2% in September, ONS says. (01/12/2012) http://www.bbc.co.uk/news/business-19959827 * Hill, C.W.L & Jones, G.L. (2010) Strategic Management an integrated approach. Cengage learning: USA