Rivalry against Mr.Empanada Restaurant Research Paper

Rivalry against Mr.Empanada Restaurant - Research Paper ExampleEmpanada was rise up on the way to being a recognized fast food company in the Tampa alcove argona (Mr. Empanada). Mr. Empanada served as a vendor in the forum of the Tampa Bay Times. The most recent dealership of Mr. Empanada was established in the Soviet Union in St. Petersburg in September 2012 (Mr. Empanada). To preserve the quality of its products, Mr. Empanada simply produces its food stuffs in one location in Armenia Avenue. There atomic number 18 many eatery arrange that sell empanadas in the United States but Mr. Empanada is the that restaurant that specializes in creating different types of empanadas. It is also the only restaurant that operates in the Southeast. Empanadas, as well as other similar specialty food offerings are a niche market with potential for greater development. Empanadas are quite cost effective provided bring considerable proceeds to the restaurant. In addition, the low cost of the i ngredients used to acquire empanadas along with the immense range of flavors that pile be used has been made Mr. Empanada a great success. Macro environment factors reference to external factors that affect a company but that are beyond a companys capacity to control. A model that addresses external factors that affect firms is the Porters Five Forces Model. ... g supply of suppliers (d) Rivalry among business competitors (e) The threat of substitute products (Kerfoot, Davies, and Ward 115) Diagram of Porters Five Forces abridgment (Porter, 89) Competitive rivalry concerns one of the most important aspects for industries, as it may be used to break up on potential marketing or operating strategies that will ensure that the organizations stays ahead of the competition. Mr. Empanadas marketing strategies are largely based on factors that take into account its competitors. The restaurants consumers naturally have high standards and will opt for the outlet that caters best for t heir needs. This explains why Mr. Empanada is constantly looking to create new and more flavor filled products that are created with organic raw materials. Rivalry in the restaurant industry is evident in the price discounting practices, advertising campaigns, service improvement initiatives, and new product introductions that are often seen in many restaurants. Moreover, sometimes, intense competition can negatively affect profitability. Many times, the book of business rivalry is brought about by the following factors Exit Barriers Competition between businesses usually increases when the expenses problematical in closing the business are more than the costs involved in remaining in business. The expression exit barrier is descriptive of an impediment that makes it difficult for an enterpriser to leave the business. These barriers mean that the entrepreneur will incur a great cost in spite of having good reasons for leaving. Exit barriers can exacerbate business rivalry becaus e if a corporation is non able to leave due to underperformance, it is force to compete. In the restaurant industry, there is a low exit rate and there are not many