Porter 5 forces analysis
1) Threat of New Entrants
Threat of new entrants into the Fast Food market within Hong Kong is high as there are few proprietary product differences and the cost to enter the market is relatively low. It is assumed that skilled labor would be easily accessible at a reasonable cost given Hong Kong is in a position where GDP/GNI is still low and growing.
Large established companies with strong brand identities such as McDonald’s and KFC do make it more difficult to enter and succeed within the marketplace, however, given the country is yet to be saturated with fast food restaurants there continues to be opportunity. The newcomer to the Hong Kong market could find that they are faced with price competition from existing chain restaurants.
2) Bargaining Power of Buyers
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Credit:ivythesis.typepad.com
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