Suppose Nirala wants to enter fast food Industry in Pakistan. What will it be looking at:
Population 6.8Million in Lahore
Average life of a person 65 years
People above 45 years_________30%= 2.04 Million (almost 80% don’t eat Fast food)
People above 45 years who eat fast food______________2.04M*20%=0.408 Million
Those who are above 45 but don’t eat fast food= 5.1Million-1.02 Million=1.632 Million
Total market = 6.8Million-1.632 Million= 5.168 Million
Who are the Major Players?
Multinational
McDonald______________10%
Pizza Hut_______________10%
KFC __________________ 6%
Hardee’s________________2%
National (Sophisticated)
AFC etc ……………………..10%
National(little or no sophistication)
Lasania, Street vendors, Cook n Bull, De-Chix etc 40%
Life cycle:
Mature
Posters five forces:
1)Bargaining power of supplier:
Raw material can be made available from any where at cheaper rates.
2)Threat of new entry:
As there is low fixed cost,so there will definitely a threat to entry.
3)Substitutes:
The Backer products are one of its substitutes.
4)Rivalry among the existing firms:
There is a great rivalry among existing firms for market share.
5)Bargaining power of buyer
There are others providing the same thing having the same core benefit.
Since I did it alone, I think there is a room for more value addition. Further I did it this way may be you have a better way of doing the structural analysis.
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20 comments:
You have assumed a very huge market.I dont think that there are 12.92M market of fast food eaters.You are right about first force.Kindly explain me about substitutes.
Excuse for the repeated comments.It was due to error.
I agree with hira u realy mansion a very huge market for fast food in Pakistan. I think people of Pakistan like more continental food than fast food.Most of the population of pakistan live in ruler area and they do not have an idea about fast food..
And i think substitute is not the bakery products substitute is continental food..
See I told u,you can suggest a lot more better things.well as far as the substitute is concerned, substitute depends on how you define your industry. Futher it also depends on the core value which should be same.the core value is to full the tummy and both bakery products and fast food is same so both are substitutes.
i agree with burraq.Bakery products are not substitutes.
i just want to add that if u want to analyze such a case u should start with a limited territory and should focus on the industry u r working on.on the data above u talked about fast food industry, so u should be focused on ur core product and the competitors of ur industry at the startup level
Hira i never said that continental food is not a substitute I said that bakery products are one of the substitutes.If u all want me i can blog about substitutes.I think that will definitely be interesting.Further I like ur feed back Zian and i will work on it.
vl,i want to know,the figures you have given.have you assumed them or these are the facts.coz there are many other national and multi national players in Pakistan.and i agree with zain,to analyze a new industry, you should begin with a small area.as if beginning with examining lahore would be much better.
and btw,population of Pakistan is 170 Million..:)
i guess you have to do the whole calculations again,as the posts depends on a population of 17 million
@ Burraq
correct me if I am wrong...
Continental does'nt come under "Fast Food" ???
Zia come on this is all based on assumption.If this was fact based i should have given reference.Answering to the question of Mozzam I think continental food doesn't come under fast food.
@moazzam
continental food doesnt come under fast food.
@zia
figures are not matter as such because asim has assumed these figures.The real quest is to search out the major players of the industry.From the above discussion,i think this is not a attractive market for nirala because there are already big players providing similar products.
@ moazzam u r right..
I belive that the fast food market does have a 12.92 M market of fast food eaters...
In pakistan after eating "desi" food what people prefer is fast food- easy to get and easy to eat!!
Dont u think so? while discussing fast food, prefrence varies person to person, for example, for me hardees, kfc and mcdonald are not places from where i can get fast food. the real place is "karachi paratha role".
so whats the definition of fast food given by Nirala???
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