3.

• Direct competitors: brand, market share, alliances, quality, price, investment capacity, loyalty,
exit barriers, sunk costs; Autogrill is focusing mainly on expansion in the airport channel, with
attention also to the railway sector and the motorway presence that has characterized them for
years. Going to recognize the direct competition on the service offered is not easy, as international
operators mix with local, smaller in size but with a greater geographical focus. The large operators
then have catering services that sometimes only touch the Autogrill business area, offering
ancillary services in one of the fields but focusing on other spheres of activity.
Focusing on competitors that are large enough to be considered important, and who operate in
several areas where Autogrill is present, we have identified three main groups: SSP Group,
Cremonini Group, Elior Group.
All of these have important shareholdings with international brands such as Burger King, Starbucks
and others, which from country to country grant rights to exploit the name and products to the
various operating companies. The competition is very high, with the various competitors trying to
take advantage of any free space in the market, and competing for collaborations with important
brands in the various locations where they are present. For these reasons, in addition to the
various minor competitors and large groups seeking expansion into new markets, we have judged
this force to be HIGH intensity.

• Suppliers: size, number, concentration, conversion costs, value for money, threat of “upstream”
integration; as a service provider, defining suppliers becomes a broad subject. Local focus is an
indispensable factor for every operator in this field, and therefore having high quality raw
materials in order to always offer excellent products becomes fundamental. However, the search
for a network of suppliers cannot be reduced to this, which also includes the production of ready-
made meals, drinks, gift gadgets or gifts for some of these activities based on the partnerships
obtained. Each of the companies operating in these sectors is characterized by a continuous
search for new suppliers, both in the areas where it is already present and in the areas of new
entry, to be more flexible to customer requests and to depend as little as possible on a few
suppliers.
For these reasons, we have evaluated this force at LOW intensity, as there are no particular
threats of generalized upstream integration, but rather a continuous search for alternatives that
make the power of suppliers towards the customer of this sector low.

• Buyers: size, number, concentration, conversion costs, value for money, threat of “downstream”
integration; In these sectors, customers are often more linked to the brands to which companies
have access than to the company itself. Just think of how many travelers the M of McDonald's
brings to certain motorway stations more than the classic Autogrill logo. A similar argument can be
made for brands such as Roadhouse or Starbucks, and also expand to the refreshment areas
present in airports or train stations. In addition to this, there is an increasing attention to quality,
product and service, on the part of consumers, who bring the competition to the level of urban
catering rather than rest areas. In all this, even the price competition should not be
underestimated, also because we are still talking about stops during trips, whether long or short,
and therefore it will hardly find many customers willing to pay very high expenses. All this leads to
a high infidelity to the brand understood as Autogrill or SSP Group, with various local nuances
dictated by the taste and travel habits of local or occasional customers, and by what partnerships
there are in that specific area. In this context, it is also worth noting the strategic expansion
towards the Duty-Free market, with the integration and then the partial demerger of Autogrill
with Aldeasa and of the British World Duty Free Europe and Alpha Retail, respectively in 2011 and
then 2015.
For these reasons we have rated HIGH competition on this strength.

• Potential entrants: reaction of competitors, barriers to entry (such as capital, size scale,
experience, brand, know-how, patents, regulations); The barriers to entry are to be considered
high, as the growing competition has led to a very high and very wide quality level of the offer. In
addition, obtaining important partnerships is expensive and not easy, because there has already
been strong competition to grab the main brands at the main stopping points. A shock can,
however, come from local decisions by various governments to target or dispose of particular
areas, as the opening or expansion of important airports totally changes the prospects in certain
countries, especially for markets that are yet to be fully developed such as Asia.
The necessary experience and capital to be able to enter is certainly high, but in recent times there
have been various expansions in new markets of operators already specialized in the restaurant
sector but not yet present in the service in airport or motorway areas.
Another factor that could bring about important changes is the trend of large fast food chains, and
the possible entry of new operators in that field. Since partnerships with this type of operators are
so important, the evolution that that market could have, both internationally and locally in various
countries, should not be underestimated.
For these reasons we have evaluated this strength MEDIA.

• Substitutes: quality / price ratio, customer willingness to replace, conversion costs, legal /
psychological / distribution barriers; the threat of services substituting those offered in rest areas
are difficult to identify, because they depend above all on a fundamental factor: the duration of
the journey. As for long journeys, and therefore catering areas present in railway or airport
stations during stopovers or changes, it is difficult to think of replacing this type of catering other
than with services directly during the journey, a service already present for each competitor
analyzed. A potential alternative is represented by meals that individual travelers can bring
themselves, but it is an increasingly less important habit for a new concept of break understood no
longer with just buying a product to feed themselves but having a complete and relevant service.
experiential area. The case of short trips, typical of Europe, is different, where urban catering is
one of the possible alternatives, even if less and less considered than in the past, especially with
regard to motorway travel. Bringing the quality standards of the service to the level of classic
urban catering moves in this sense, making the offer already present in the rest areas more
complete and therefore without having to adapt to a reduced choice as in the past.
We evaluated this force at LOW intensity therefore.
3.2

1. Differences in consumer tastes and preferences

As for the differences in consumer tastes, the sector is very close and heavily influenced by the
restaurant sector. Tastes can vary a lot from area to area, from consumer to consumer, from
moment to moment. That said, the main variables that have influenced the sector in recent years
are the greater attention to vegan products, greater body care and therefore the preference for
healthier products, a greater focus on quality and local products.
This differentiation, however, must be declined in the various geographic contexts in which the
analyzed companies operate: the Asian market -mainly airports- is characterized by a more
massive presence of large international chains and less of typically local products. It is very
different in the EU area, in particular in Italy and France, where if the presence of large
international chains is still confirmed, there is a great demand for local products. The large fast
food chains such as McDonald's have also noticed this need, which over the years have introduced
different products according to the country, to better meet this growing demand for local
products. In America the presence of large chains is obviously massive, but the demand for
healthier products has its roots in the homeland of fast food.
Another important variable that is changing the classic scenarios is the growing attention of
consumers towards green issues, both of the production of raw materials and of their
consumption when in the premises, looking at how the containers are made, the waste of plastic
and collection. waste after the meal.
Before the Covid-19 pandemic, airport traffic was increasingly on the rise, especially international
traffic, and this pushed competitors to have to deal daily with an increasingly varied clientele and
with a great variety of needs and tastes. The panorama at the moment is uncertain from this point
of view, with trips that have become increasingly local and less transcontinental, but it is not yet
possible to determine how this could have repercussions on the travelers' consumption choices.
These factors prompted us to consider this force at HIGH intensity, given that attention to the local
with an increasingly global perspective is essential in order to meet the ever-growing needs of
consumers.

2. Differences in traditional infrastructure and practices

In each country, the different needs and customs have obviously led to some differences with
regards to traditional infrastructures and practices, especially as regards the cultural aspect behind
the service and food. As far as traditional practices are concerned, a difference in menu and
service to be offered according to the geographical area in which one operates must certainly be
taken into consideration: it is not possible to ignore the differences in the consumption habits of
customers, also dictated by religious practices which make certain types of offer unsuitable for
certain markets. The Middle Eastern market cannot be treated in the same way as the American
one, for example, as religious practices and habits are an integral part of the local culture, and a
non-specialized service offer could create great difficulties in working with this clientele, because
not it would be considered appropriate and suitable for sale and therefore would lead customers
to distrust a certain type of offer. Surely the aspect of globalization and an increasingly varied
clientele of travelers has led to having to be ready in every area where one operates to deal with
people from other parts of the world, and therefore to a need for breadth of offer. of the service
and preparation for any type of eventuality.
For these reasons, we assessed the pressure for MODERATE traditional infrastructure and
practices.
3. Differences in distribution channels
Differentiation in distribution channels is constantly evolving.
If on the one hand the continuous push to expand the offer has led to an incessant search for
methods to match this with the traditional methods of administering the service, globalization and
the explosion of online services have had a great impact also in this market.
With at the forefront large companies such as McDonald's or Starbucks which have already
independently invested heavily in the new distribution channels, and which therefore have
transmitted their know-how to the companies that locally hold the rights for their services in the
traveler catering market, is undergoing a constant renewal of services with more and more use of
online channels and new technologies to support the catering and hospitality service.
This is an area where the greatest change will be observed in the coming years, as all large
operating companies are investing heavily to adapt to new needs and to better exploit the
opportunities that mobile devices can offer, with projects on online bookings already ready upon
arrival in a specific parking area, and with experiments carried out above all in the Asian market
ready to be tested also on markets such as the Italian and European ones.
For these reasons we have evaluated this pressure of MODERATE intensity.

4. Differences in host government requests

Each country has different practices for the assignment of the rights of use of the food service
areas, which may depend on public tenders for areas such as Italian motorway stations,
agreements between private individuals and tenders for different areas, as happens in the US.
This leads to a non-uniform panorama that must be analyzed from case to case, and which does
not allow a single strategy for each infrastructure taken into consideration but which must be
declined according to the context to be considered, the actors involved, the pressures. behind you.
It is no mystery that Chinese commercial expansion is strongly guided by the government rather
than by the entrepreneurial thrusts of individuals or corporations, and that in order to operate in
strategic and important areas of that area, canons dictated by the Party Assembly must be
respected. Totally opposite situation for the rights of use in the American panorama, where
instead there is a much more mobile market and free from government dictates.
As far as health regulations are concerned, the EU territory is characterized by Community rules
that outline the necessary requirements to be able to operate in the field of catering, in particular
it is Articles 43, 114, 168, and 169 of the TFEU that outline the rules in terms of hygiene, labeling,
food contamination and components related to the production of raw materials then used. Even
within the EU territory, however, there are state laws or local certifications that add to the general
landscape, which should not be ignored when operating in different countries, even if the EU legal
basis remains essential and fundamental.
Generally, also for the American territory laws similar to the European ones are in force, which
may vary according to the different legislation of the various states but which similarly to what
happens with the EU member states have a common central body. In particular, the agency
common to each American state and which represents the biggest difference with the rest of the
countries is the Food and Drug Administration, which with its division into eight different
departments controls and deals with food safety and best practices. relative. As for the Chinese
market, as with many activities in this area, the main authority remains the central government,
which controls the National Medical Products Administration, formerly the China Food and Drug
Administration. The Chinese market has seen a recent tightening of controls and standards to be
respected, and which has seen a further step towards strict control with the advent of the Civid-19
pandemic and with further regulations introduced by the General Administration of Quality
Supervision, Inspection and Quarantine.
We have evaluated this pressure of MODERATE-HIGH intensity, and we believe that in the near
future it will be heavily influenced by the new regulations that the Coronavirus will lead to
implement.

3.3
In conclusion, by crossing the two variables, the sector in which Autogrill operates is positioned in
Situation C, with medium-high pressure for cost reduction and moderate low pressure for local
reactivity.
High pressure for cost reduction:
Due to globalization and increasing competition with international operators, the pressure to
reduce costs has increased pushing towards a better quality / price ratio to adapt to the different
market demands and changes. This has led to a direct increase in competitiveness among the
players present in the sector.
In addition, globalization has led to an ever-increasing refinement of the offer, in order to meet
every request from consumers, prompting close competition for the achievement of agreements
with groups such as Mc Donald's and other large international chains.
Furthermore, the evolution of customers contributes to increasing these pressures because today
almost all sectors are characterized by zero switching costs and lower information costs.
Moderate pressure for local reactivity:
While maintaining some differences, globalization has allowed a progressive unification of tastes
and preferences all over the world, which has allowed companies to sell almost the same products
in every country in which they operate, differentiating advertising and sponsorships and remaining
able to respect customs and customs of different countries. However, this has also led to having to
adapt more and more to a multifaceted and complex clientele, always on the move and often with
extreme needs, which must be satisfied to prevent them from changing operator they rely on. The
greatest differences, however, are found in the legislation and in the process to be able to operate
in certain areas, especially in the motorway and railway channel. These mix with the government
choices of some areas, especially with regard to the areas with greater development, and which
make attention to the various local dynamics of necessary importance.
Point C corresponds to a Transnational Strategy, which attempts to combine simultaneously:
-achieve low costs through location economies, economies of scale, and learning effects;
-differentiate the product offering across geographic markets to account for local differences;
- foster a multidirectional flow of skills between different subsidiaries in the firm's global network
of operations.
This can be seen well with the choices recently implemented by Autogrill, in fact, with greater
attention to the different needs of consumers combined with an ever-increasing level of quality,
but with attention to reducing costs so as not to be out of the market in relation to other
competitors.