External Analysis - 2-4 pages

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zhonenx2yzneev

Business Finance

Description

"The client for our project is the JM Food Management LLC"

We are a team of 5 students doing an external analysis. My friend and I are doing an Industry Analysis and my part of the industry analysis is:

1- Competitors

2- Substitutes

only!

and that will be 2-4 pages

bellow is what is required for the whole external analysis. we will just focus on (substitutes and competitors) my group will take care of the rest.

Milestones 3: External Analysis

Are there important developments in the macro environment (e.g., deregulation, demographic changes, stock market instability, dollar appreciation, Internet, etc.) that may threaten or create opportunities for the firm? What is the power of the buyers and suppliers relative to the firm? Are there substitute products? How intense is the competition in the firm’s industry? Are there important developments within its industry (e.g., increasing consolidation and merger activities) that could influence the overall industry attractiveness and determinants of relative success (key success factors)? What forces are emerging and are likely to permanently change the industry?


I also attached powerpoint slides from the chapter that were discussed in class you might find it helpful as well.

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Explanation & Answer

Attached.

Running head: JM FOOD MANAGEMENT LLC EXTERNAL ANALYSIS

JM Food Management LLC External Analysis
Name
Institution

1

JM FOOD MANAGEMENT LLC EXTERNAL ANALYSIS

2

JM Food Management LLC External Analysis
Competitors
Competitors are referred to opponent firms or industry often in the same industry that
produces goods or products that almost offer the same benefits to the customers (Fleisher &
Bensoussan, 2015). In the restaurant industry there various fast food producing firms in which
JM Food management is situated. Some of the firms that tend to engage in competition with JM
Food management are first McDonald who is a fast food restaurant .second is the Chipotle as
well as the Shake which are restaurants that deals with fast-casual foods.
However, despite the presence of the many competing firms, JM Food management is the
leading firm in the fast food sector. A factor that has enabled the firm to be among the leading
fast food restaurant is the aspect of that the preferences of the consumers have changed over time
whereby they are opting for fast food that is of high quality even if the price charged is slightly
higher than that of traditional fast food. The JM Food management firm tends to produce meals
that are nutritious to fulfill the preference of the consumers.
They tend to offer sandwiches that are often preferred by most of the consumers to the
hamburgers. In making its sandwiches to be competitive from those of other restaurants of first
food, fast food, it makes its sandwiches using bread that is whole grain, mixed with vegetables
that are fresh. Also in ensuring that consumers can purchase their hamburger, the firm offers it
with the option of low fat and protein content (Ewen et al. 2016). With this their products
become unique from those of other competitors and therefore they receive more sales as well as
consumers.
Due to the aspect of competition that exists within the JM Food management firm, it
looks for ways in which it can make it services unique to attract more consumers as well as

JM FOOD MANAGEMENT LLC EXTERNAL ANALYSIS

3

increase their sales. In this, the company has utilized the aspect of the internet as a way to
effectively compete with its competitors and retain as well as improve on their leading position.
This aspect has created a lot of opportunity for the business so that it is in a position to out-way
some of its competitors such as Nestle and McDonald. With the use of internet the company has
an app that can be downloaded by the iOS as well as the android cell phones whereby the
consumers can make online orders for the foods they want. After a customer has placed an order,
the firm packs the order, and it is delivered to the customer using a delivery service that is known
as the UberEat. Through the use of such services the company is in a position to maintain its
leading position as almost no firm has started the online ordering of food around the area where
the firm is situated.
Substitute
The aspect of substitute refers to a case whereby there is the availability of a product
from another firm that provides similar benefits to the customers as that of a product produced by
another firm. Usually, these firms are usually in the same industry. In the case of JM food
Management LLC, which is in the restaurant industry, it is among other industries that all
produce products that are similar (Mueller & McMullan, 2003). The firm tends to produce
products that at times have substitutes from other firms in this industry such as the McDonald.
An example of such a product is the sandwich where other firms in this industry also produce.
Hamburgers are also another product that almost every firm in this restaurant industry produces.
Therefore with the products of these firms there tends to be available substitutes for their
products.
However, this threat of substitute is only bound to affecting the firm in the occasion that
the buyers face a switch or a shift in the cost of the product of JM food management thus this

JM FOOD MANAGEMENT LLC EXTERNAL ANALYSIS

4

might impose a threat in the firm. However, despite the fact that the firm produces products that
are similar to those produced by others, it faces a threat of substitute in that firms such as
McDonald produces an excellent substitute of the sandwiches that are known as the omelet wrap
with Asian chicken.
Also, the aspect of a substitute poses a threat to the firm on the scenario where the
substitute from other companies are sold a price that is slightly lower than JM food management
as well as if the quality is better. However at JM food management despite the presence of
substitute, it relatively charges lower rice for thei...


Anonymous
Really helped me to better understand my coursework. Super recommended.

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