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Industry Analysis. Full Service Restaurants By Team Paradigm Pirates. What We Will Cover. Quick Overview of Industry Summary of Forces Affecting the Industry What Works Industry Attractiveness. Industry Overview. Over 200,000 individual establishments across the nation
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Industry Analysis Full Service Restaurants By Team Paradigm Pirates
What We Will Cover • Quick Overview of Industry • Summary of Forces Affecting the Industry • What Works • Industry Attractiveness
Industry Overview • Over 200,000 individual establishments across the nation • Generating about $190 Billion in Annual Revenue • Segmented Industry • Mom & Pop or Multi-National Conglomerate • Mature Growth Stage • Highly competitive • No clear dominance in the industry • Top 4 companies make up just 8% of market share
Internal Forces Affecting The Industry • High Threat of Substitutes • Competitive Rivalry is Intense • Threat of New Entrants • Buyers Have the Power • Macro-Environment • Low Power of Suppliers
External Forces Affecting The Industry • Political • Economical • Influences of Fluctuating Economy • Socio-Cultural • Health Conscious Consumers • Technological • Legal • Licensing, Health Regulations • Environmental
What Works • Economies of Scale • Cost Management • Differentiation • Are we really selling just food?
How do You Fail? • Zone of Competitive Battle Rests in the Garden of Eden • Hard to control costs • With a saturated market, differentiation is extremely difficult HIGH Zone of Competitive Battle Relative Differentiation Danger Zone Death Valley Relative Cost LOW HIGH
Industry Attractiveness: Pros • Low Barriers to Entry • No Dominant Firm • Low Cost of Capital • Expected Future Growth
Industry Attractiveness: Cons • Highly Competitive • Market Saturation • Mature Stage of Life-Cycle • Slim Profit Margins • Difficult to Manage Costs