Porters Five Forces in Fast Food Industry

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Technological

Technology plays important role in fast food industry as it also helps consumer to get familiar with technology. Fast Food Industry gives advertisement by using channels. They also use social websites like Facebook, their own websites with vouchers to promote their brand. Digital displays helps to change the menu efficiently according to time and day for service. Electronic Funds Transfer at Point of Sale (EFTPOS) which is accepting debit or credit cards from customers at the time of their purchase. Self service ordering points have increased the service speed and diminishes labour cost. [pic 6]

Environmental

Fast food industry like McDonald's, KFC, Burger King, Subway are the majority known for production and consumption of food derived from animals. So they need take proper measures for use of animals by considering animal rights campaign as they also provide information regarding mistreatment of animals. KFC adopted the recycling packaging and McDonald's non-biodegradable substance for glasses. As government also pressuring fast food industry to become more green which also helps to build the image in the mind of customers and can gain loyalty toward customers. [pic 7]

Legal

Industries must comply with country regulations and legislation. Legal aspects like tax obligations, employment standards, and quality requirements are only a few among the other equally important legal factors on which the company has to take into consideration. To survive for long run the fast food industry has to follow the rules set by the Food Standard Agency (FSA), which is responsible for heath of public relation to food in UK.

Key players in the fast food industry UK

- McDonald's[pic 8]

- Greggs

- Burger King

- Pret a Manger

- KFC

- Nando's

- EAT

- Other local takeaway shops including Chinese and Indian takeaway.

Market segmentation

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Mostly the potential target customers for the fast food industry are the working class people who do not have enough time to cook at home. Another competitive advantage gained by he fast food industry is economy because the fast foods are normally cheap and affordable.so the students are also their target customer.

Some of the local fast food shops and even the chain restaurant serve the food with cultural and religious needs. For example, for Muslim they serve with halal foods, avoid the use of beef in Hindu community. They also serve the food of local taste slightly modifying to the taste of local people.

The concept of healthy food is considered by most of the fast food restaurant nowadays. For those who are concerned with obesity, diabetics, and cholesterol problems they do the differentiation accordingly. For example most of the restaurant use cholesterol free oil to fry chicken fish and chips.

The best segmentation performed by the fast food chain is the product differentiation. For example, Dominos is specialized in serving pizza, KFC serves fried chicken, McDonald's serve hamburgers and chips, Burger king deals with burgers, Gregg’s deals with breadstuff etc.

Therefore, the market segmentation strategy of fast food industry is appreciative because most of the franchise fast food invests money and is able to research to meet the best customer value and find the sweet spot for the products. They have strategy and do research to find out the customer's income level, socio-cultural status, eating habits, choices and all other customer's expectations and successfully use them as a business strategy, as a competitive advantage to grow and sustain the business.

References

Rodrigo (2012) Strategic Analysis (SWOT, PESTEL, Five Forces) of McDonalds. Available from:

http://writepass.com/journal/2012/12/the-term-restaurant-is-an-establishment-where-food-is-prepared-and-served-to-the-people-and-alwaysalmost-refers-to-any-sort-of-dine-in/ [Accessed on 5th July2014]

Dr. Ibrahim, E. (2012) Fast Food Industry. Available from: http://angelajohndotme.files.wordpress.com/2012/10/fast-food-industry.pdf [Accessed on 6th July 2014]

Jain, A. (2012) UK Fast food industry and McDonalds. Available from: http://www.scribd.com/doc/100960351/UK-Fast-Food-Industry-and-McDonalds [Accessed on 6th July 201]

Hoque, A. (2012) Subway- Marketing Plan. Available From: http://www.scribd.com/doc/87475800/SUBWAY-Marketing-Plan [Accessed on 6th July 2014]

Martin, S. (2014) Why Britain is Bonkers for Fast Food and Spends Billions on Greasy Grub

Available from: http://www.ibtimes.co.uk/why-britain-bonkers-fast-food-spend-billions-greasy-grub-1443028 [Accessed on 7th July 2014]

Data monitor (2012) “Global fast food” Available from: http://360.datamonitor.com/product? Pid 3DED8EE7-42A1-4EA5-A9EC-87AB5E740A02 [Accessed on 05th July 2014]

Muhlbacher et al.(1999) “International Marketing”. London: Thomson Business Press. Pg :1-201.

Porter M E (1999). Micheal Porter on competition: Antitrust bull. Hein online Jason, H. (29 april 2013). Which Fast food industry is king of online?. Available from: http:// realbusiness.co.uk/article/18041-which-fast-food-industry-is-king-of-online. [Accessed on 8th July 2014]

Teri (2006) PEST Available from: http://www.studymode.com/essays/Pest-99599.html [Accessed on 5th July 2014]

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