Japan Qsr Industry

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Technological factors: Japan is a technologically advanced nation know as a technology powerhouse. Organizations can promote production effectiveness and efficiency with high-tech conditions. Many fast food companies also started to make use of internet to find marketing opportunities and develop more sale distribution channels.

FIVE forces analysis

Rivalry among present competitors:

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Except these competitors, there are also many small burger outlets such as some local outlets so that consumers can easily switch to different stores. So rivalry among present competitors is really strong.

Threat of New entrants: According to the report of JFSA in September 2015, the whole QSR industry is increasing but the number western fast food restaurants decrease 1.5% over last year. The burger industry continued weakness around 1 year because food safety problems occurred in quick succession and now is starting to recover. Although the industry is easy to entry but because of the industry situation and it’s difficult gaining the product differentiation, so the threat of new entrants is not so strong.

Bargaining Power of Suppliers: For burger industry, the main suppliers are chicken, beef, vegetables, buns. These raw materials have wide sources, burger outlets have a wide range of choosing. In addition, in order to get access to high quality, stable quantity of raw materials supplied, burger restaurants always sign a long-term contract to establish long-term relationship with suppliers. So the Bargaining Power of Suppliers is weak.

Bargaining Power of Buyers: Although Japanese are more price-conscious nowadays, and there is no switching costs for customers with different restaurants. However, there always have accurate published priced in the burger restaurants and consumers always accept it because the store pricing its products considering competitor’s price. So Bargaining Power of Buyers is moderate.

Threat of substitute products: Customers have diversity demand for fast food, and people don’t like to repeat consume the same food in a long time, they often like changing taste. There are many substitutes in other industry. For example, convenience stores, such as 7-Eleven and Lawson‘s that are now found all over Japanese cities，is really popular that account for 33% value share in fast food and maintain a positive performance, offer a wide variety of convenience food include noodles, desserts, chicken, onigiri etc. Other substitutes like sushi, chicken, lamian are also very welcomed. So that threat of substitute products is really high.

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