Table of Contents
Executive Summary 2
I- Primary driving forces for U.S fast-food industry 3
1) Income level 3
2) Labor cost 3
3) Changing of societal concerns, attitudes, and lifestyle 4
II- Using Porter’s five forces model, assess the strength of each force within the fast-food industry. 5
1) Risk of Entry by Potential Competitors 5
2) Rivalry among Established Companies 6
3) Bargaining Power of Buyers 7
4) Bargaining Power of Suppliers 8
5) Threat of Substitutes 9
US fast food industry is developed rapidly and can be considered as a mature industry nowadays. This assignment is discussed about the starting of this industry based on the case study “KFC and the Global Fast-food Industry”, which was published in 2004. The primary driving forces to the development of US fast food industry is included the reasons of globalization; changes labor cost, income level, changing of societal concerns, attitudes and lifestyle. These elements had eventually provided the opportunities and threats to the US fast food industry. Besides, by using the Porter’s Five Forces model, it is examined that the US fast food industry is attractive at that time and it is suitable to enter this market since the market is potential to get the huge profit. As what the fact that show in the year 2004, there is an intensive competition among the players in the US fast food industry. The competitors is competing among themselves in term of price and branding. In order to achieve sustainable in this particular industry, it is crucial to understand the environmental factors and also make changes to comply with the changing of the world. The US fast food industry is well developed since it starting point and it keep moving to the global market and eventually will become a competing market in the future.
I- Primary driving forces for U.S fast-food industry
1) Income level
As the income level of the consumers start to increase,...