1. Potential entry of new competitors: LOW PRESSURE

Data:

Economies of Scale – As a starting firm, economies of scale is yet to be achieved, the goods to be produced at a certain value of input cost is yet to be ascertained, thus economies of scale is not yet achieved. High Pressure

Product Differentiation – Our products are quite different from the product of our competitors in a way, the burgers of Jollibee and McDonald’s are fast food/processed burgers, the sandwiches/burgers of KFC and Cerealicious are chicken burgers, therefore the main competitor with regards to burgers is YvanNavy, but then again, the burgers of YN is the American Beef Burgers, while our burgers represents an American dish with a twist of Middle Eastern flavors. Moderate Pressure.

Cost Advantages independent of scale – The existing firms pretty much holds no cost advantage. We have more than enough access to technology, raw materials, good locations, and most especially government subsidies. Low Pressure

Switching Cost – There is relatively zero cost for switching products by the consumers from one burger to another firm’s burger. Low pressure

Access to Distribution Channel – There is no barrier with regards to distribution channel because there is much available space in the desired location. Low Pressure

Government and Legal Barriers - There is no Government and Legal Barriers present. Low Pressure

2. Potential development of substitute products: LOW PRESSURE

- Even if Beef Kebab Burgers (B.K.B.) sells the same type of product, which is burger, it will be extremely difficult for the competing firms to copy them because of the innovation we put in it, and they will have to shift their line of business from American to Middle Eastern dishes, thus there is a very small chance of developing a substitute product with lower cost and a higher quality than B.K.B.’s burgers.

3. Bargaining power of suppliers: LOW PRESSURE

- Main ingredient of our Kebaburgers include Beef Meat, and the supplier is one of our assets, and in case of any fortuitous event that would require us to change suppliers, beef meat suppliers are not concentrated, therefore it is very easy to shift.

4. Bargaining power of consumers: HIGH PRESSURE

- For a starting firm without any established name like B.K.B. it is apparent that the powers of consumers are indeed high.

5. Rivalry among competing firms: MODERATE PRESSURE

- Currently, the main/direct competitor is Yvan Navy because they produce homemade burgers like us, while the indirect competitors are Jollibee, McDonald’s, KFC, and Cerealicious for their variety of processed and chicken burgers, with credits to the established name of Jollibee, McDonald’s, and KFC.

Data:

Competing Firms Average Grade:

1. KFC - 22. McDonalds – 2.253. Cerealicious – 1.54. Jollibee – 2.255. Yvan Navy – 1.5

Price completion

1. KFC – Php 30 - 1202. McDonalds – Php 25 - 1503. Cerealicious – Php 1354. Jollibee – Php 30 - 1505. Yvan Navy – Php 50 – 300

New Burger Products

1. KFC – Sometimes 2. McDonalds – Sometimes 3. Cerealicious – Sometimes 4. Jollibee – Sometimes5. Yvan Navy – Never

Customer Service Quality

1. KFC, Mendiola – Low2. McDonalds, Mendiola – Low3. Cerealicious – Low4. Jollibee – Low5. Yvan Navy – Low

Advertising

1. KFC – Moderate2. McDonalds – High3. Cerealicious – Low4. Jollibee – High5. Yvan Navy – Low