Fast Food in Korea

AMERICAN FAST FOOD IN KOREA 1. Comp ard to other eastmost Asian countries, is Korea an ideal merchandise? Korea is the only country in Asia where capital expenditure has revived in 2002. In the entire Asia fast-food chains were not hurt by the Asian economical crisis at the end of the 90s. However in Korea, revenues of fast-food franchises drip by 25 per cent during the Asian financial crisis in 1997 and while the economy was under the influence of the shock. After whatsoever structural reforms in Korean government, economy starts to recovery. Already In 2001 Korea was 13th largest economy in the world with GNP of $398 billion. 2. guess the Korean fast-food application, applying Porters Five Forces Model. ? Rivalry Rivalry is intense, essentially affected by big price competition amongst market dominators, Lotteria and McDonalds. We can also affirm that industry assiduity is superior, because the market is dominated by a few companies, and the competitors are heterogeneous (from fast-food based on Hamburgers, to Pizza restaurants or family restaurants). effort is recovering after the crisis although growth is considerably slower than forward the crisis.

? Threats of new entrants There are high capital requirements for doing backing in the fast food industry since franchises are high fixed cost investments that require economies of scale in erect to be profitable. Its not easy to access barren materials concerning the small size of the country and the impossibility of gr accept their own food. There is existing brand loyalty to Lotteria, who has been in the market since 1978, while other fast food incumbents have already obtained the most favorable store locations. This in addition to McDonalds second place in industry increases the risk of market dominators retaliation. ? Threat of substitutes Substitutes in the fast food industry comprise of family restaurant chains, pizza restaurants, and local Korean... If you want to ram a full essay, order it on our website: Orderessay

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