Assignment: Complete an Industry Analysis of the Fast-Casual Dining Industry (This is not Fast Food; a
submission about Fast Food will result in a score of 0)
Directions: Use the outline below, in conjunction with your book and notes from class to write a 3.0 – 4.0-page Industry Analysis. The paper should cover the most significant points from your analysis and use of the tool outlined below. The paper should be double-spaced with 12-point font with 1” margins. Title pages, reference pages, and appendices do not count towards the page count totals. However, keep in mind that your analysis is that of an industry, which is much broader than a singular view from a given company. The submission should include the use of reputable sources (i.e. – Investopedia, Wikipedia, and/or any sources that are populated by readers are not reputable). Please see the rubric in CANVAS to understand how each section is weighted and the significance of proper formatting.
I. Analyze the Industry – Use the Tools
A. Use Five-forces to Explore and Analyze the Competitive Forces of the Industry
1. Assess the competition in the environment and determine if the Rivalry is weak, moderate, or strong.
2. Analyze Supplier Power in the context of how suppliers may influence what a specific company in the industry may or may not do. Classify as weak, moderate, or strong
3. Assess the Threat of New Entrants. In particularly, is it easy, moderately easy, or difficult for new companies to enter into this competitive environment. Classify as weak, moderate, or strong.
4. Determine the availability of Substitutes (i.e. – are there other products or services that could easily replace those of the companies found in the industry). Classify as weak, moderate, or strong.
5. Analyze Buyer Power in the context of does the buyer have alternatives and are they capable of driving changes in products and services. Classify as weak, moderate, strong.
II. Draw Conclusions from the Five Forces analyses?
a. Summarize: Use the information from section I above to summarize the competitive forces of this industry. For instance, if the rivalry is strong, supplier power is strong, and buyer power is strong, one could conclude that competition is strong and may heavily influence a company’s strategic decisions and directly impact profitability.
b. Assesses the current and future state of the industry
a. How attractive is this industry? Provides details and support.
b. What will the industry look like 5 years from now? Why does it stay the same or potentially look different? Provide support for your rationale.
c. Given the current state of the industry, what value propositions may be appealing to customers of this industry? (It is often helpful to identify two successful firms in the industry and understand how their value propositions work under the competitive conditions in the industry).
c. Describe how a potential entrant to this industry may perceive its chances of earning above-average returns given your analysis.