After briefly presenting the profile of the company, the assignment analyzes the external and internal environment, paying attention to the factors that affect their business, as well as the sources of its competitive advantages. Following these, a hypothetic case is analyzed, whereby a new low-cost retailer enters the fast-food industry in Greece.
The scenario of the case discussed in this assignment suggests, a new low-cost retailer enters the fast-food industry in Greece, which obviously affects the business of Goody’s.
Article Strategic Analysis of Greek fast food industry: Case study o...
It seems to me the answer would turn on how the low cost positioning is connected to the desires of a particular consumer segment; there is no abstract answer to this question. Low cost strategies are difficult to maintain, and positioning on cost is a kind of brain dead strategy since it is copyiable, and especially if there are deep pocket competitors already in the market space who can squeeze the new entrants margins with short term deals.
It seems to me the answer would turn on how the low cost positioning is connected to the desires of a particular consumer segment; there is no abstract answer to this question. Low cost strategies are difficult to maintain, and positioning on cost is a kind of brain dead strategy since it is copyiable, and especially if there are deep pocket competitors already in the market space who can squeeze the new entrants margins with short term deals.
Hi Spyros,
as the first you have to answer - are there some local restaurant(s) those are very popular in Greece. If your answer is YES, than fast food chain can make let's say "normal success" but also you have to be very careful because those restaurants could be great barrier to fast food chain.
Let's say in Bosnia and Herzegovina thera are many small restaurants those prepare local specialities such as "ćevap", "pljeskavica" or different ones those offer specialities such as "burek"... McDonald's opened tree restaurants in B&H (and one was closed this year) and they work with "normal success" or even worse (you have to know tha there are many foreign people who work and live in B&H and who visit and eat in this type of restaurant and they are the best customers). So McDonald's weer opened some restaurants but they are not so succesful such in other countries.
On the other hand, McDonald have several restaurants in Croatia and the one in Split (I often go to Split and I eat in it) works much much better (it is very visible) than the sam one in Mostar in B&H. Very simple reason - there are no such restautants in Split such exist in Mostar and "food culture" is different - see food is very popular in Split (Craotia) so McDonald's is very popular restaurant where people can eat meat fast food. In Mostar (and B&H) there are a lot of similar food (and people think much better food).
My advice, before start with analysis (SWOT, PESTLE, Porter's...), just make this simple one - are there any restaurants those are popular and loved by local people. If YES, than fast food chain will work for tourists and several percents (in my opinion < 5%) of local people.
Best regards.
Igor
Hello Spyros,
to my mind the solution depends on target market (whether there are people ready to buy low-cost fast food, probably students or people where it is popular) and the location (if it is situated at a large transportation junction), then it will be a success.
Best wishes
Nataliia
In times of crisis, all companies need to make some tactical changes in order to ensure survival. As well noted above by Dr. Eric Arnold, costs are vital. In addition, of course the people search for regional stores, more familiar, and that offer lower costs, since a fast-food chain necessarily need certain minimum volume of stores to be viable.
I think that cheap fast food chains are successful in countries where local net of restaurants is either developed not sufficiently or is too expensive.
I know the case of Spain better and I think that it resembles Greece. The popularity of McDonalds and similar chains in Spain is low because there are many local restaurants that offer food of good quality and at cheap prices. Once after manifestation of anti-globalists in Barcelona I even saw a message painted on McDonalds in Spanish: "Food for rats". This is attitude of many people there. Although some tourists visit fast food chains there.
In some countries and cities with many tourists the price of meal in restaurant can be too expensive for backpacker, and then he/she might be looking for fast food chain. Examples include Paris and even Rome. If this is the case in some Greek locations, there might be a potential for moderate entry of fast food chains.
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