1.

Potential entry of new competitors: LOW PRESSURE

Data:
Economies of Scale As a starting firm, economies of scale is yet to be
achieved, the goods to be produced at a certain value of input cost is yet to
be ascertained, thus economies of scale is not yet achieved. High Pressure
Product Differentiation Our products are quite different from the
product of our competitors in a way, the burgers of Jollibee and McDonalds
are fast food/processed burgers, the sandwiches/burgers of KFC and
Cerealicious are chicken burgers, therefore the main competitor with regards
to burgers is YvanNavy, but then again, the burgers of YN is the American
Beef Burgers, while our burgers represents an American dish with a twist of
Middle Eastern flavors. Moderate Pressure.
Cost Advantages independent of scale The existing firms pretty much
holds no cost advantage. We have more than enough access to technology,
raw materials, good locations, and most especially government subsidies.
Low Pressure
Switching Cost There is relatively zero cost for switching products by the
consumers from one burger to another firms burger. Low pressure
Access to Distribution Channel There is no barrier with regards to
distribution channel because there is much available space in the desired
location. Low Pressure
Government and Legal Barriers - There is no Government and Legal
Barriers present. Low Pressure

2. Potential development of substitute products: LOW PRESSURE

-

Even if Beef Kebab Burgers (B.K.B.) sells the same type of product,
which is burger, it will be extremely difficult for the competing firms to
copy them because of the innovation we put in it, and they will have to
shift their line of business from American to Middle Eastern dishes,
thus there is a very small chance of developing a substitute product
with lower cost and a higher quality than B.K.B.s burgers.

3. Bargaining power of suppliers: LOW PRESSURE

-

Main ingredient of our Kebaburgers include Beef Meat, and the supplier
is one of our assets, and in case of any fortuitous event that would
require us to change suppliers, beef meat suppliers are not
concentrated, therefore it is very easy to shift.

4. Bargaining power of consumers: HIGH PRESSURE

-

For a starting firm without any established name like B.K.B. it is

apparent that the powers of consumers are indeed high.

5. Rivalry among competing firms: MODERATE PRESSURE

-

Currently, the main/direct competitor is Yvan Navy because they

produce homemade burgers like us, while the indirect competitors are
Jollibee, McDonalds, KFC, and Cerealicious for their variety of
processed and chicken burgers, with credits to the established name of
Jollibee, McDonalds, and KFC.

Data:
Competing Firms Average Grade:
1.
2.
3.
4.
5.

KFC - 2
McDonalds 2.25
Cerealicious 1.5
Jollibee 2.25
Yvan Navy 1.5

Price completion
1.
2.
3.
4.
5.

KFC Php 30 - 120

McDonalds Php 25 - 150
Cerealicious Php 135
Jollibee Php 30 - 150
Yvan Navy Php 50 300

New Burger Products

1.
2.
3.
4.
5.

KFC Sometimes
McDonalds Sometimes
Cerealicious Sometimes
Jollibee Sometimes
Yvan Navy Never

Customer Service Quality

1.
2.
3.
4.
5.

KFC, Mendiola Low

McDonalds, Mendiola Low
Cerealicious Low
Jollibee Low
Yvan Navy Low

Advertising
1.
2.
3.
4.
5.

KFC Moderate
McDonalds High
Cerealicious Low
Jollibee High
Yvan Navy Low