Business Strategy

The Five Forces analysis for Heart Attack Fried Chicken Restaurants operates:

Competitive Rivalry – High: Today, the fast-food business is one of the most competitive markets. The Heart Attack is also facing heavy competition in its business from other players in the industry especially McDonald which is taking it head-on for the top spot in the global market. Although product distinction exists in some products, most products are similar, such as burgers, soft drinks, coleslaw, and salads. As a result, each competitor is trying to come up with techniques to attract customers. The competitive rivalry for The Heart Attack is very strong.

The threat of New Entrants – Medium: The fast-food industry needs a high degree of investment, marketing, and product creation before a potential entrant can make a position in the industry. These customers stop going to any location other than these particular restaurants. The willingness of existing brands to maintain the same quality taste, restaurant environment, and outstanding customer service worldwide has further increased the barriers to entry into this market. The threat of new entrants is also a medium for Heart Attack.

Bargaining Power of Suppliers – Low: The main raw materials of the Heart Attack include chicken, soft drinks, and potatoes. Due to very regular and large orders, a significant number of suppliers are ready to agree to the terms of the Heart Attack and to supply it with the necessary raw products. Owing to the lack of product distinction, large order scale, and a huge proportion of suppliers; suppliers do not have bargaining power against the Heart Attack and cannot attempt to increase their prices.

Bargaining Power of Buyers – High: The Heart Attack's buyers are consumers who go to their restaurants every day. Today, these consumers have a range of options to go. For example, chicken Fila, Subway, McDonald, Pizza Hut, and so on. Therefore, the Heart Attack cannot increase rates and force consumers to buy their products at higher prices. Customers will most likely move to buy from another competitor. Heart Attack consumers have a range of options. The bargaining power of customers against the Heart Attack is also strong.

The Threat of Substitutes – High: There are many restaurants selling Heart Attack items. One of them is Chicken Filla, which has become a good replacement for Heart Attack. The restaurant serves a variety of other side dishes, such as rice and mashed potatoes, which Heart Attack does not provide. Heart Attack has resolved this problem by providing free Wi-Fi access in its restaurants and offering the morning breakfast menu. The possibility of replacements is also strong for Heart Attack.

 

Low

Medium

High

Competitive Rivalry

 

 

The Heart Attack is also facing heavy competition in its business from other players in the industry

The threat of New Entrants

 

Heart attack customers stop going to any location other than these particular restaurants.

 

Bargaining Power of Suppliers

 Due to very regular and large orders, a significant number of suppliers are ready to agree to the terms of the Heart Attack and to supply it with the necessary raw products

 

 

Bargaining Power of Buyers

 

 

The Heart Attack cannot increase rates and force consumers to buy their products at higher prices.

The Threat of Substitutes

 

 

There is a range of restaurants selling like Heart Attack items. The restaurant serves a variety of other side dishes, which Heart Attack does not provide.


Competitive Strategy: 

The growth of the fried chicken industry in Heart Attack is very remarkable, and this position is largely due to its corporate approach of using “Lean Production” to make the sector more effective. Heart Attack aims to minimize the number of tools required to deliver lean industrial goods and services to consumers. The term also requires the removal of waste and the use of less material, space, labor, and time. Decreased cost of supply is the net consequence. Another competitive tactic that stands by and against the competitors of Heart Attack is that it invests in staff members. Each member undergoes a rigorous training curriculum that makes them multi-skilled and can play a range of roles in the workplace. In this way, Heart Attack wants to hire fewer employees to staff its stores. The competitive advantage of Heart Attack is its supply chain and logistics system. This helps the fast-food giant to build partnerships with business partners and to create a base in regions where competitiveness is already struggling. Since Heart Attack's supply chain and distribution system is so well developed around the world, it is less difficult than other fast-food chains to develop a position, particularly in less saturated areas so there are still plenty of growth opportunities. . The heart attack restaurants have a competitive advantage in selling fried chicken sandwiches at good quality and appropriate prices, thus allowing the heart attack restaurants to gain more sales or better profits compared to their industry rivals. Besides, all their restaurants have great locations, they have restaurants next to office buildings, malls, and suburban areas where there are not enough restaurants to support them. The heart attack restaurants offer products that nearby competitors cannot match, such as novel ingredients, higher quality, lower prices, and faster service.

Business Process:

The term trade is applied to commercial businesses through which goods and services are bought and sold. Trade is one of the branches of business. Trade may take place in a narrow range within the local market, or outside the borders of the country, and one of the parties to trade maybe people, companies, or countries. The commercial process is the foundation on which trade in particular and global trade in general depend. And the commercial process is a process that depends on the principle of exchange, whether the money for goods and commodities or an exchange between goods and other goods, it is a cycle of selling, buying, marketing, and customer service.

Structured process: These are constant, periodic operations in the restaurant that do not change like the process of making products. First, we have farms in which we raise chickens to have a stable source from which we slaughter the required quantities in the restaurant and also to be confident of the chicken that it is healthy and not harmful because the most important thing for us is safety Customers. Also, the packaging process and customer service are stable under any circumstances, so we must provide a product with a medium price with high efficiency to obtain customer satisfaction

Dynamic process: They are variable operations in the restaurant aimed at increasing customers. For example, in the past, we used to make advertisements on papers that we distribute to passers-by in the street next to the restaurant, but now with the presence of technology, we have a website and a special application for us to receive requests and receive customer complaints and suggestions. We used social media in marketing well, as it is easy, inexpensive, and quick to reach people. We always make offers and discounts to attract customers to us. These are not fixed operations, but rather dependent on demand and product supply, and here we always change our marketing plans with each period.

Value Chain:

Value chain analysis is one of the useful tools with which to plan how you can build the most value for your customers. We receive business money in exchange for primary resources and adding value to these resources and converting them into something of value to others. It is easy to see this in all fields, not just restaurants, where we bring the restaurant a raw material that has little benefit for the end-user, for example, chicken and bread and turns it into something that people are willing to pay for delicious sandwiches and fried chicken.

Inbound logistics: We start with the design, the shape of the product, then the matters related to raw materials, and we prepare a large number of chickens for us to use in the following stages. We also have places to store these resources are received and stored and then moved within the facility and are examined.

Operations: This stage includes everything related to the operation and management of the raw material entered and ends with packaging, Where sandwiches are made, using the raw materials that we brought to the restaurant, bread, chicken, lettuce, mayonnaise, and tomatoes. And then use them together to take out the product that is offered to customers. As it includes many sectors, including operation, measurement, assembly, packaging, delivery, production follow-up, and consumer service.

Outbound Logistics: includes the final product which is sandwiches and meals. Also, supply is one of the most important activities that we must take care of, as a distribution plan is developed by specialists.

Sales and Marketing: the basic element in the whole process, introducing the product and meeting the needs of the customer is the only goal of the organization. You must communicate with the customer to find out his needs and raise the competitive advantages of the institution. And in marketing, we have many ways to introduce our products to the community through advertisements on the road and also on social media.

Product Service: it is known by many as after-sales service, and it is one of the biggest competitive advantages that raise the shares of major companies. We created a box for suggestions and complaints in the restaurant. Make an opinion questionnaire for all visitors after taking their requests and providing them with what they want from food. We give them a questionnaire sheet so that they can say what we can add or amend to meet their requests.

The objectives of the series:

1.     Producing competitive quality products through integration between the overall sectors of the company

2.     Work to assert the interest of all those involved in the chain, starting with the recipient of the raw materials and ending with the retailer and the user.

3.     Create a product that makes the customers satisfied and came again to the restaurant.

The tasks of the administration are varied, as it is the one that purchases raw materials and provides the tools and machines used in the industrial process, if the administration is at a high degree of efficiency, it can provide the finest materials and machinery at the lowest prices, which helps in reducing the cost and ensuring the quality of the products.

Technology and quality: two indispensable elements in the industrial process, raising the efficiency of products and introducing innovations that meet customer requirements are the pinnacle of excellence, and here it should be noted that international certificates such as ISO and commitment to total quality standards are a good feature of the competitive advantages that most companies take into account.

Human resource: The most important and accurate element of the industrial process is the human element. The more efficient the worker and the manager, the more efficient the organization as a whole, and the human resource is a link in the value chain.

Choose the appropriate social media networks:

We own an in-house marketing team with experience in social media marketing but we have to choose some social media sites that we will use to publish restaurant ads on them because it will not be a smart and effective move to be on all social media, regardless of the presence of the target customer group or not. Social networks differ in terms of the quality of the active audience and the type of the most appropriate content, so we were sure that we had to develop the content of ads in each different site for each network and choose a specific language and tone of communication that fits each social networking site and will not achieve the desired results through dispersion and not focusing on a specific number of Social networks that witness the most activity of potential customers, with effective advertising solutions and communication channels that suit the distinctive content that your business offers, services or products.

LinkedIn: The Right Network for Marketing Services and Products.

Facebook: Whatever category of target customers will be on Facebook, which provides cost-effective and results-effective advertising solutions

Twitter: The right platform for tracking ratings and customer feedback on products and services

Instagram: Visual content marketing, images, and short videos get higher engagement on Instagram than any other platform

YouTube: Through YouTube, you can post a video explaining the features of products and services, as well as tips that increase customer interaction and confidence

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