SWOT ANALYSIS OF MANG INASAL

STRENGTH:

● Fast growing company with currently 445 branches and 10,000 employees
● Well oriented and train crews that will serve the customer very well
● Brand image is visible that the customer will know what mang inasal offers to the market
● Credible managers that will help the employees to be mold into better one and make the
mang inasal on top
● Locally adapted food menus are offered to make the customer feel like they are at home
● To make customers satisfied especially those who are “Kanin Lovers”
● Advantages of the organization
● Activities of the company better than competitors.
● Unique resources and low cost resources the company have.
● Activities and resources market sees as the company’s strength.
● Unique selling proposition of the company.

WEAKNESSES:

● Improvement that could be done.

● Factors that can reduce the sales.
● Competitor’s activities
● Lack of motivation to compete with different fast food chains that offer better quality
than Mang Inasal in Singapore
● Product availability and quality (Limited menu) that the customer will like
● Customer complaint of slow service
● Low customer retention
● Decentralized talent acquisition
● High employee turnover
● Labor shortage because of too much customer

OPPORTUNITIES:

● Technological Advances
● International Expansion
● Number of offices
● Changing customer tastes
● Government regulates the non-usage of plastic
● Home meal delivery
● Good opportunities that can be sspotted.
● LInteresting trends of industry.
● Opportunities for Mang Inasal can be obtained from things such as:
○ Change in technology and market strategies
 ○ Government policy changes that is related to the company’s field
○ Changes in social patterns and lifestyles.
○ Local events.

THREATS:

● Changing customer tastes

● Direct competitors & Indirect competitor
● Competitive price pressure
● Trend towards healthy eating
● Similar concept and service
● Company’s facing obstacles.
● Activities of competitors.
● Product and services quality standards
● Threat from changing technologies
● Financial/cash flow problems
● Weakness that threaten the business.

PESTEL/ PEST Analysis of Mang Inasal

PEST FACTORS:

POLITICAL:

● Next political elections and changes that will happen in the country due to these elections
● Strong and powerful political person, his point of view on business policies and their effect
on the organization.
● Strength of property rights and law rules. And its ratio with corruption and organized crimes.
● Changes in these situation and its effects.
● Change in Legislation and taxation effects on the company
● Trend of regulations and deregulations. Effects of change in business regulations
● Timescale of legislative change.
● Other political factors likely to change for Mang Inasal.

ECONOMICAL:

● Position and current economy trend, i.e., growing, stagnant or declining.

● Exchange rates fluctuations and its relation with company.
● Change in Level of customer’s disposable income and its effect.
● Fluctuation in unemployment rate and its effect on hiring of skilled employees
● Access to credit and loans. And its effects on company
● Effect of globalization on economic environment
● Considerations on other economic factors
SOCIO-CULTURAL:

● Change in population growth rate and age factors, and its impacts on organization.
● Effect on organization due to Change in attitudes and generational shifts.
● Standards of health, education and social mobility levels. Its changes and effects on
company.
● Employment patterns, job market trend and attitude towards work according to different
age groups.
● case study solutions
● Social attitudes and social trends, change in socio culture and its effects.
● Religious believers and life styles and its effects on organization
● Other socio culture factors and its impacts.

TECHNOLOGICAL:

● Any new technology that company is using

● Any new technology in market that could affect the work, organization or industry
● Access of competitors to the new technologies and its impact on their
product development/better services.
● Research areas of government and education institutes in which the company can make any
efforts
● Changes in infra-structure and its effects on work flow
● Existing technology that can facilitate the company
● Other technological factors and their impacts on company and industry

Porter’s Five Forces/ Strategic Analysis of The Mang Inasal

THREAT OF NEW ENTRANTS:

● as the industry have high profits, many new entrants will try to enter into the market.
● However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it
is necessary to block the new entrants in the industry. following factors is describing the level of
threat to new entrants:
● Barriers to entry that includes copy rights and patents.
● High capital requirement
● Industry profitability
● Customer loyalty to established brands
● Product differentiation
● Government restricted policies
 ● Switching cost
● Access to suppliers and distributions
● Customer loyalty to established brands

THREAT OF SUBSTITUTES:

● this describes the threat to company. If the goods and services are not up to the standard,
consumers can use substitutes and alternatives that do not need any extra effort and do not make a
major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of
Coca Cola. The potential factors that made customer shift to substitutes are as follows:
● Price performance of substitute
● Switching costs of buyer
● Products substitute available in the market
● Reduction of quality
● Close substitution is available

DEGREE OF INDUSTRY RIVALRY:

● the lesser money and resources are required to enter into any industry, the higher there will be
new competitors and be an effective competitor. It will also weaken the company’s position.
● Following are the potential factors that will influence the company’s competition:
● Competitive advantage
● Continuous innovation
● Sustainable position in competitive advantage
● Level of advertising
● Competitive strategy

BARGAINING POWER OF BUYERS:

● it deals with the ability of customers to take down the prices. It mainly consists the importance of a
customer and the level of cost if a customer will switch from one product to another. The buyer
power is high if there are too many alternatives available. And the buyer power is low if there are
lesser options of alternatives and switching. Following factors will influence the buying power of
customers:
● Bargaining leverage
● Switching cost of a buyer
● Buyer price sensitivity
● Competitive advantage of company’s product
BARGAINING POWER OF SUPPLIERS:

● this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier
available, this will threat the company and it would have to purchase its raw material in supplier’s
terms. However, if there are many suppliers alternative, suppliers have low bargaining power and
company do not have to face high switching cost. The potential factors that effects bargaining power
of suppliers are the following:
● Input differentiation
● Impact of cost on differentiation
● Strength of distribution centers
● Input substitute’s availability.

Transcription:

Industry Competitors (Intensity of Rivalry):

● New Entrants - Threat of the new entrants
● Suppliers
● Buyers
● Substitutes
New Entrants - Threat of the new entrants

Barriers to Entry
● Economies of scale
● Product differentiation
● Brand identification
● Switching cost
● Access to distrubution channels
● Capital requirements
● Access to latest technology
● Experience & learning effects

Government Action
● Industry protection
● Industry regulation
● Consistency of policies
● Capital movements among countries
● Custom duties
● Foreign exchange
● Foreign ownership
● Assistance provided to competitors

Rivalry Among Competitors

● Concentration & balance among competitors
● Industry growth
● Fixed (or storage) cost
● Product differentiation
● Internittent capacity increasing
● Switching costs
● Corporate strategic stakes

Barriers to Exit
● Asset specialization
● One-time cost of exit
● Strategic interrelationships with other businesses
● Emotional barriers
● Government & social restrictions

Suppliers - Bargaining Power of Suppliers

Power of Suppliers
● Number of important suppliers
● Availability of substitutes for the supplier's products
● Differentiation or switching cost of supplier's products
● Supplier's threat of forward integration
● Industry threat of backward integration
● Supplier's contribution to quality or service of the industry products
● Total industry cost contributed by suppliers
● Importanxe of the industry to suppliers profit

Buyers - Bargaining Powers of Buyers

Power of Buyers
● Number of important buyers
● Availability of substitutes for the industry products
● Buyer's switching costs
● Buyer's threat of backward integration
● Industry threat of forward integration
● Contribution to quality or service of buyer's products
● Total buyer's cost contributed by the industry
● Buyer's profitability

Substitutes - Threat if substitutes

Availability of Substitutes
● Availability of close substitutes
● User's switching costs
● Substitutes producer's profitability & aggressiveness
● Substitute price-value

The competitive scenario

From the analysis above, we infer the following scenario of competitiveness in the fast-food industry:

● High bargaining power of buyers: A disadvantage for a fast-food outlet

● Low bargaining power of suppliers: An advantage
● High competitive rivalry among competitors: A disadvantage
● High threat of substitute products: A disadvantage
● Low threat of new entrants: An advantage
(1) Bargaining power of buyers

The buyers have high bargaining power in a place where there are many fast-food joints, as
they can choose any one of them.

For example, if the queue is too long at one outlet, the buyer can probably go to another outlet
just across the road. The determinant of the high buyers’ bargaining power, in this case, is the
high number of sellers to cater to the buyers. But the high bargaining power of the buyer is a
disadvantage to a fast-food restaurant operating at the place.

(2) Bargaining power of suppliers

The main suppliers in the fast-food industry are dough, dairy produce, and meat vendors. Their
bargaining power is low since there would be a number of suppliers of these items.

The determinant of the low suppliers’ bargaining power here is the lack of differentiation among
the suppliers’ products (the existence of a number of reliable suppliers). So, this is an advantage
for a fast-food outlet or chain.

(3) Competitive rivalry among competitors

The industry is chock-a-bloc with competitors—there are big brands such as McDonald’s and
KFC, and medium and smaller brands, including local restaurants and bakeries, selling a variety
of snacks and quick-eats.

The determinant of the high competition is the high number of eateries selling quality
products. This situation is a disadvantage to a fast-food eatery.

(4) The threat of substitute products

Restaurants and other eateries are quite capable of selling the types of products sold by a fast-food
joint, such as a burger or a sandwich. So, the threat of substitute products is quite high for a fast-
food restaurant.

The determinant of the high threat of substitutes is the lack of differentiation among the
products available (except perhaps in the case of McDonald’s or KFC, whose products are seen
as unique)—obviously a disadvantage for a fast-food outlet.

(5) The threat of new entrants, or barriers to entry

An entrepreneur requires a complex set of permissions to open a restaurant. In addition, good

infrastructure needs to be built up. Then there is the task of creating unique products to set apart
the restaurant from its competitors, which may include multinational chains.
Any businessperson would baulk at the prospect of entering this business. The determinant of the
low threat of new entrants is the requirement of a number of permissions (tough barriers to entry)
and the established products. Therefore, this is an advantage for a fast-food joint.