Competitive forces

Rivalry among competing firms

In terms of rivalry among restaurants there is a constant battle between fast food chicken,
traditional and hamburgers, and although Colombians prefer to consume more chicken, the higher
income is obtained with hamburgers. One of the reasons may be because the prices for
hamburger combos, which only one person eats, they are very high compared to the prices of a
chicken combo or traditional food, where more people can be fed. (Roa et al., 2011)

When the market is saturated, the competition is more intense. While a restaurant is doing a
strategy of lowering prices to “attack” the other restaurants, another one is creating a strategy to
counter the other strategies. Colombia is a very competitive country in terms of its restaurants,
they constantly seek to find new ways to compete and remain notable, this is reflected in a quite
evident and visible rivalry. An example of this competitivity and sales strategies we can found the
case of an “e-commerce” restaurant with a big strategy that allows it to become competitive
faster in the market. Fasfú Burgers is a fast-food restaurant created by the famous Mexican
youtuber Luisito Comunica. As this restaurant belongs to this famous, he uses his own image as a
marketing strategy which allows him to position its company faster in the market. Thus, becoming
a direct rival for other restaurants based on e-commerce.

This rivalry can be seen as an opportunity to constantly keep improving and innovating for the
best. However, it can be a risk because the market is saturated and getting noticed and
distinguished from others can become increasingly difficult.

In Colombia there is a price war between the different companies. Switching costs are medium
high, because competitors they cannot switch activities easily and the level of advantage provided
by the company is in equilibrium.

This also implies a high level of price rivalry. The degree of Overcrowding is high, because
companies in this sector are easily imitated and there is little difference between them in terms of
products and services that they present to the consumer. Distinguish yourself from the
competition then becomes a necessity, innovate through other means to be competitive, not
focusing solely on prices.

References:

LA USADA ANTERIORMENTE

Roa, J. ´P., Saavedra, S., & Lozano, C. (2011). (rep.). Turbulencia empresarial en Colombia:
sector restaurantes comidas rápidas: Kokoriko, Frisby y La Brasa Roja (p. 23). Bogotá D.C: Centro
de Estudios Empresariales para la Perdurabilidad (CEEP).

Bargaining power of consumer

It is high because too many buyers want these products from all social classes, at least
once a week. The buyers are not so similar because they are part of cultures and social
status.
Nowadays, all social classes, with different needs, enjoy of a complete and traditional
meal. With so much demand in one sector, consumers can easily switch between
companies and even be motivated at any time to start the same activity as these
companies if they have the money and the availability necessary. But to be able to do it,
you must have the necessary information in this regard and in this sector, it is easy to
obtain it. (Roa et al., 2011).
Consumers tend to prefer choosing a specific restaurant-based in how commerce’s pull their
standards to them, this is because their preferences and what they are used to choose. Consumers
have the capacity of making changes in the industry because they have the “power” of maintaining
commerce’s business if the restaurant is up to their standards and expectations, so the consumer
will continue to consume their products.

References:
Roa, J. ´P., Saavedra, S., & Lozano, C. (2011). (rep.). Turbulencia empresarial en Colombia:
sector restaurantes comidas rápidas: Kokoriko, Frisby y La Brasa Roja (p. 23). Bogotá D.C: Centro
de Estudios Empresariales para la Perdurabilidad (CEEP).