Tasty Taco Truck

“Tasty Taco Truck” has many competitions across the city of Houston. One of the main competition of “Tasty Taco Truck” is “Cupcake and a Smile,” which primarily sells cupcakes to its customers. They have about 10-15 food trucks that constantly travel around the town. Another major competition of “Tasty Taco Truck” is the “The Waffle Bus,” which serves waffles and other morning foods to its customers. However, “The Waffle Bus” only has five food trucks. “Tasty Taco Truck” has a monopolistic competition. It is evident that the city of Houston includes many food truck businesses, meaning that “Tasty Taco Truck” has many competitions. Furthermore, the food truck industry has a relatively simple entry because vast quantity of money will not be
spent compared to other businesses, and and also has a relatively simple exit in that there aren’t many risks and costs to leave the industry. Additonally, to validate Tasty Taco Truck’s competition structure on monopolistic competition environment: it provides competition to other food truck businesses, it has all the traits and potential to succeed, it offers many different options compared to oligopoly or monopoly, which are limited in their options because of risk. “Tasty Taco Truck” specifically targets college students because they offer the most potential in buying our food. College students do not have time to waste, so “Tasty Taco Truck” will ensure that they do not have to cook food themselves or go to a fast-food restaurant because we will always be near them. The picture below depicts all the universities and colleges in the downtown area. Paragraph 2: “Tasty Taco Truck” will have many competitions as previously stated.
Without an efficient strategy, the business will fail in the Houston environment. We highly depend on our attributes to combat the competition presented in our field of food truck services. Our main competition, “Cupcake and a Smile” serves cupcakes as their primary food. After acknowledging this, we have determined that “Cupcake and a Smile” will serve no threat to our target consumer or other consumers. “Cupcake and a Smile” differs in its target consumer from “Tasty Taco Truck.” Their target consumers are predominantly kids and young adults, whereas ours’ consists predominantly of college students. Additionally, the services offered by “Cupcake and a Smile” would be considered more as a mid-day snack oppose to ours’, which is considered as a meal. The realm of competition between us and “Cupcake and a Smile” differs significantly because of the food services that we both offer. Although “Cupcake and a Smile” is a big competition, we not value them as a threat to our business. “Cupcake and a Smile” can even be beneficial to our taco truck in that they can attract new customers to the area and paint the presence of food trucks within a specific area or route. Obstacles in the entry of this field of food service includes lack of progress due to the weather. Houston is a storm prone city, and in the last couple of years, it has suffered from dramatic and horrific floods. If the abundant amount
of storms and terrible weather continues, it can potentially interrupt and stop my business from functioning.
“Tasty Taco Truck” serves many different purposes besides food. Moreover, “Tasty Taco Truck” is needed for the two employees who earn their income from the business. Without “Tasty Taco Truck,” these two employees will be without a job. “Tasty Taco Truck” will not contribute to the slowly decreasing 3.7% unemployment rate in the city of Houston. These employees are dependent on “Tasty Taco Truck” just as it is dependent on the employees. In addition, “Tasty Taco Truck” is needed for the hundreds of regular college students who depend on it for their meal. If “Tasty Taco Truck” was not present to suffice the needs of these college students, then they would have to depend on other alternatives, which can be costly compared to “Tasty Taco Truck”. If “Tasty Taco Truck” was removed from its position in the food truck market in Houston, hundreds of people will be affected. The competition in the food truck market will not slow down, therefore my food truck will have to compete against other businesses. In order to compete, we will highly depend on our attribute of satisfying the cutomer and meeting to their needs. A strong impression on the customer will ensure that they keep coming back to our service. With the loan, we will expand our business and maintain control over certain areas of the town, meaning that we will ensure that a profitable part of the city always has access to our food trucks. This method will combat upcoming and established food trucks from expanding in that area of town because we will have the most market share in that specific region of the city.