Corporate Competitive Strategy Analysis

853 words - 4 pages

wAnalysis external environment for fast-food industry
Presume that China is the potential market for a new fast-food enterprise to open, I would like to analyze relative conditions related to the extension of the market.
General macroeconomic conditions
In 2014, the economic conditions in China is enthusiastic. According to the data from National Bureau of Statistics of China, Total Retail Sales of Consumer Goods in January and February have experienced a generally increase, going up by 11.8%. Compared with the increasing pace in 2013, it was slowed down in the first two month in 2014. This may means the motivations for consuming in 2014 would be weaker. At the same time, the consumptions ...view middle of the document...

To deal with the labor issue, more training can be provided so that employees in the future are able to finish their work which used to be 2 or 3 people’s missions. Also, this problem can possibly be solved by making use of advanced technologies. The shifted preference can be tackled by making market investigations to understand the trend towards preference of elder people.

Social values and lifestyle
Regimen, nowadays, has been paid more attention by the public and fast-foods are considered as products which are full of calories. More and more people stop to have some organically healthy foods like organic salads instead of “junk food”.

An alternative for this problem can be making new fast foods with little calories so that consumers will believe the food provided will not cause health problems. Also, some campaigns for the new foods should also be supported especially advertisements.

Technology
Generally speaking, there isn’t any difference in making fast-foods. Almost all the fast-food enterprises use similar equipment and technologies. However, compared with other developing countries, it is easier to find experienced staff and work can be finished more efficiently and this may be good for the reduction of flexible costs. This benefit will enhance the enterprise’s ability to pay the loans as they are able to earn higher profit.

Legislations and regulations
According to the regulations given by the Chinese central government, officers are encouraged to reduce their consumptions in luxury restaurants. However, Chinese culture towards communication via dinner has influenced people deeply and officers may urgently find some places to continue their social communication activities. This gives the fast-food companies an...

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