Fast Casual - Five Forces Analysis

Fast Casual - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Exit barriers are low (Fast Casual ) When exit barriers are low, weak firms are more likely to leave the market, which will increase the...
Relatively few competitors (Fast Casual ) Few competitors mean fewer firms are competing for the same customers and resources, which is a...
Fast industry growth rate (Fast Casual ) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Large number of substitute inputs (Fast Casual ) Firms such as Taco Bell, Qdoba, Moe's Southwest Grill, and Baja Fresh pose a threat as less...
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Low concentration of suppliers (Fast Casual ) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Volume is critical to suppliers (Fast Casual ) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Critical production inputs are similar (Fast Casual ) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...

Threat of Substitutes

Substitute is lower quality (Fast Casual ) A lower quality product means a customer is less likely to switch from **Fast Casual ** to another...
Substitute product is inferior (Fast Casual ) An inferior product means a customer is less likely to switch from **Fast Casual ** to another...
Substantial product differentiation (Fast Casual ) When products and services are very different, customers are less likely to find comparable product...

Bargaining Power of Customers

Buyers require special customization (Fast Casual ) When customers require special customizations, they are less likely to switch to producers who have...
Low buyer price sensitivity (Fast Casual ) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Fast Casual ) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Fast Casual ) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

High capital requirements (Fast Casual ) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Fast Casual ) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Fast Casual ) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Geographic factors limit competition (Fast Casual ) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (Fast Casual ) It takes time and money to build a brand. When companies need to spend resources building a brand,...

What is Porter's Five Forces Analysis?

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