Question

Having experienced a robust debate discussion on the strengths, weaknesses, opportunities, threats, and trends (SWOTT) analysis and strategic planning for a particular fast-food franchise, it is time to shift gears a bit and consider the competition in the fast-food industry.

• Identify 1 or 2 other major competitors in the fast-food industry, and describe their sources of competitive advantage.
• Discuss a current issue that this industry faces. It could be favorable or unfavorable to the industry.
• Which of the major competitors has the strongest competitive advantage and ability to overcome the barriers presented by the current issues identified and why?

Part 2: Based on the first initial of your last name:

• First initial A-L: provide an argument ‘AGAINST’ the ability of the competition to overtake fast-food franchise. Submit your position by posting in the Unit 3 Debate forum, under the ‘AGAINST’ topic.

In both considerations, provide research that supports your assertions.

Answer 1

PART 1-:

Identify 1 or 2 other major competitors in the fast-food industry, and describe their sources of competitive advantage.

Chik-Fil-A is undoubtedly the main competitor,considering its tremendous growth in the past few years. Although it is ranked below Mc Donald's starbucks,Wendy's burger king and KFC in America's largest fast food restaurant,the growth rate of Chik-Fil-A is very fast,making it arguably biggest competitor in this market.A high customer satisfaction rate is a significant source of competitive advantage for the company,as it registers a score of 86 percent in customer satisfaction,which is the highest in fast food sector (Berger 2015,June 30).Customer loyalty is another competitive advantage source,with the company bragging of millions of Chik-Fil-A loyal customers.These customers purchase Chik-Fil-A products only,and can hardly buy from competitors.

PART 2-:

Discuss a current issue that this industry faces. It could be favorable or unfavorable to the industry.

On the competitive food market the success of enterprises largely depends on innovativeness.The demand of fast food supply is on the increasing trend especially in a society where consumers are busy working. Past researches have shown that most of the working populations are having too little time athome. Therefore, they are demanding a suitable product such as fast food that suits to their lifestyle.Furthermore, the changing stay-at home mothers’ going back to work especially during economic downturnin the year 2007-2009 has reduced quality hours time spend with their families (McDaniel, Lamb & Hair,2011).

The issue of food quality is one that is impacting us today and it is a crucial factor to consumers to become aware of it. We continually read stories of dangers that exist in our food due to additives, improper food preparation and poor food choices. On top of that, additives are used in processed foods to preserve the food so that it will stay fresh.Some additives are mixed into the food to make it taste,smell or look more pleasing. The consumers’ choices of food and eating habit are cultivated based on their customs, cultureand religion they live in. However, they can be taught to make healthier choices. Through doing and learning, consumers acquire beliefs and attitudes. As a consequent, it will influence their buying behaviour (Kotler & Armstrong, 2010).In choosing food, consumers are looking beyond than the physical product alone. Normally, thecustomers will form their own value and expectations on the various market offerings (Kotler & Armstrong,2010). They expect and demand more from the food supply. Among the things demanded by consumers arevarieties of food, quality, nutritiousness, safe foods and at a reasonable cost.Restaurant operators fear about the growing concern of customers’ expectation in the next years ahead(Dailey, 1998). The search for attributes that customers are looking for can help the management to reduce

the chances of failure in the food-service business. Customers have their own reasons to want to visit or toreturn to any restaurant. Among the attributes that they are constantly seeking are : quality, value andrejuvenating and comfortable environment. To them, offering good food and service are not sufficient toattract new and retain existing consumers. As mentioned by Peri (2006), food quality is a very importantkey that customers will always look for to satisfy their needs and expectation towards the restaurant theychoose. In order to win the competition in today’s market, restaurateurs have taken efforts to offer goodvalue of their food and provide customers with a favorable ambience (Soriano, 2002). It will guarantee acontinuous demand if the value of the product exceeds the expectation and satisfaction of the customer(Shaharudin, Hassan, Salleh, Ali, Harun, Aziz & Jalil, 2011).

The attributes of food quality depend on the type of food and the the individual’s food preference itself. The attributes that constitute quality in the mind of the consumer, and especially their weights, may change overtime as well (Grunert, 2005). Furthermore, it is difficult to understand the consumer behaviour when itcomes to the differences of each individual underlying cognitive determinants on food quality (Rijswijk &Frewer, 2008). According to Grunert, 2005, consumers are often poor at predicting quality and are dissatisfied despite the fact that they act in a situation where they are unable to confirm on their ownexpectations for a particular product. Perhaps, the past researches were inconsistent on the qualitydimensions used in the studies due to this reason.

PART 3-:

Which of the major competitors has the strongest competitive advantage and ability to overcome the barriers presented by the current issues identified and why?

Although Popeyes has more restaurants and is in more countries I believe that In-N-Out has a strongercompetitive advantage and has a better ability to overcome the current issues. In-N-Out has continuedto succeed and has been an innovator in the fast-food industry since it first opened its doors. In-N-Outhas a simple menu and can fill its customers’ orders fast enough for customers to continue to besatisfied. Although they have a simple menu they do have an underground menu that can be found onthe company’s web site. Items form this menu can be ordered at all In-N-Out restaurants. I think that thesimplicity of their menu and the fact that all items ordered on the menu taste the same no matter whatrestaurant you are in are two main reasons why I believe that this restaurant will continue to find successin all its current and future restaurants.

References

Mike. (2016, May 1).Digital Spark Marketing. Retrieved from Competitive Strategy: the Amazing Story ofIn-N-Out Burger:Smith, D. P. (2016, August).QRS. Retrieved from How Popeyes Clawed Its Way to Chicken Elite: