External Analysis Industry rivalry: High According to the case Chipotles leading competitors are Taco bell, Moe’s southwest grill, Qdoba and smaller chains Baja fresh and California tortillas. Fast food restaurants (such as Chipotle) that offer fresh quality ingredients are a threat to other regular fast food restaurants and are viewed as main attributable loss of customers. However the top competitors are able to offer and same services as Chipotle. Threat of Substitutes: Moderate Chipotles food offerings can be substituted with store bought ingredients. Also with the increase in stores offering a selection of organic ingredients, customers can opt to making their own burritos at home.
The article, "The battle against fast food begins in the home" by Daniel Weintraub, explains how people are blaming McDonalds and other fast food restaurants such as Burger King, Kentucky Fried Chicken, Starbucks, and Pizza Hut for their obesity. The author disagrees with the blaming that people are doing. I also disagree. People are blaming and sueing the fast food restaurants for the decision they have made of being unhealthy. They are making comments such as, "The problem of obesity is so staggering, so out of control, that we have to do something."
Economies of scale enjoyed by dominant companies can make life extremely tough for smaller companies battling to make headway in the same market. A new entrant to the UK fast-food market dominated by McDonald’s is the Gourmet Burger Kitchen (GBK). The business was set up by three ex-pat New-Zealanders who spotted a gap in the market for premium-quality gourmet burgers, freshly prepared to order. In addition to a standard burger and chips, the GBK menu also includes more esoteric menu items such as a chorizo spicy Spanish burger and a hot chicken satay sandwich. On average, a burger at GBK costs nearly £8.
David starts by teasing these overweight individuals that are bring a lawsuit against McDonalds, but then later admits that he used to be overweight as a child and was able to change his life around. He made a point to show health concerns with being obese and eating fast food regularly, such as type two diabetes which has risen about twenty-five percent since 1994. This raise in diabetes also requires much funding for the United States to spend to try to find a cure. David explains how there is very few alternatives for the youth of America because those health alternatives are more expensive and harder to find. False advertising is also another unpleasant practice that fast food companies use to lure in costumers.
2.Exploratory research of the attribute selection The company’ view information was searched from DATAMONITOR 360 website and annual report of McDonald’s 2010. And a brief analysis about market strategies for fast food restaurant was also for the reference of attributes selection. With the attributes from several market strategies reports in McDonald’s as well as Fast Food Restaurant Industry and the SWOT analysis from the DATAMONITOR, eventually 7 attributes were selected, namely, expensive, various menu, high service speed, high calorie content, nutritional, convenient, and novelties for children. As the top competitors in Fast Food Restaurant industry, Burger King, Pizza Hut, Wendy’s and KFC were also selected into the BrandMap for competitive analysis.
Case Questions (In addition to the ones mentioned in the respective case. These questions are given to aid your case analysis) HomePlus: 1) Analyse Korea’s situation when Tesco entered the market in 1999. What were the main factors that induced the market entry of western retail firms? 2) Evaluate the joint venture creation by Tesco & Samsung. What were the pro & cons for Tesco to choose a joint venture with a local partner as its mode of entry in Korea?
The Path to Obesity: Analysis of Super Size Me Many people eat fast food everyday but don’t realize just how unhealthy this situation can be for them. Director Morgan Spurlock decides to show just how unhealthy Americans have become with the way we consume fast food. Spurlock eats McDonalds for thirty days and decides to eat everything on the menu at least once. Also, if he was asked to “Super Size” his meal he had to and he limited his exercise like most Americans do today. This unbelievable experiment was made into the documentary Super Size Me.
One of the parts of the American culture that are affected by the fast food industry, the idea of raising our children comes to mind. According to the book the fast food industry looks at our children as a means of making money, and companies provide ‘“Cradle-to-grave’” strategies to attract young customers (Schlosser 5). The effects of McDonalds and other fast food chains affect children for life. For example, “a survey of American schoolchildren found that 96 percent could identify Ronald McDonald, the only fictional character with a higher degree of recognition is Santa Claus. The impact of McDonald’s
Therefore, customer will be more confident with this brand and willing to buy more products from it.- 2 restaurants of McDonald’s are located in Ho Chi Minh, which is the most developed city in Vietnam with a high rate of income and consumption. Specificly, young adults and wealthy people are main groups for the brand to serve. (ThanhNien News 2013).- McDonald has a special discount and offering system for children. Therefore, it can easily attract parents with childrens.- McDonald's open its stores 24 hours a day, which can meet the needs of customers anytime. | Weaknesses- McDonald’s entered Vietnam's market later than other fastfood brands such as KFC, Loteria and Jollibee (Clark, A 2014).
The McDonald’s System In this reading, Ritzer attempts to explain how McDonald’s, the popular fast food restaurant, has impacted society by revolutionizing the way we do everything in our daily lives from mundane tasks such as shopping, to more important tasks such as banking and eating. The McDonald’s system changed the way we think and act in many ways by introducing to society a new way to provide a service in a faster, more efficient manner. By dehumanizing the process, i.e., using machines to do work previously done by humans, the system provides less room for error and more predictability, therefore offering no surprises to the returning customer. He calls it the McDonaldization of Society. According to Ritzer, there are four basic elements to this system.