Target market and the Competition Assignment

INDUSTRY ANALYSIS 8

Industry Analysis

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Executive summary

For a long time, the food industry has been one of the industries that have been doing well not only in the United States but also in many other parts of the world. A good example can be borrowed from some of the already established organizations in the food industry. The paper will be analyzing the business in the food industry. Though the company is still in its developing stages, it will expound on in different ways. The ways in which the business can exploit the opportunities that are already in the industry will be focused on. It is rare for any organization to get into business without any mission. It is for this reason that the mission of the Food Truck will also be looked into. The paper will be looking at the food truck in depth and will be providing information about different aspects.

Company Description

The fast food truck deals with burgers. It is situated in Downtown Ashland Oregon 97520. The company is efficient in its services, and it gives the people in the neighborhood an opportunity to enjoy fresh burgers just a few steps from their homes (Mihet, 2013). The company has the interest of the customers at heart, and that is why it did not choose to be located at one place, it chose to be mobile so that it can save the customers the hustle of looking for burgers. Though the track is not so big, at least it serves its purpose by offering quality services and goods to the residents.

Mission statement

The fast food truck is aimed at making sure that different residents of Downtown Ashland Oregon are provided with quality services and goods. The food truck makes sure that the workers are dedicated to giving the customers a different and good taste of burgers. For many years, there has been a notion that the good burgers can only be sourced from big hotels and restaurants; the fast food truck is aimed at changing the notion by giving the customers value for their money. The fast food truck does so by providing burgers that are delicious and at a reasonable price.

Size and growth

The fast food truck is not big in size. The track only employs five employees. However, the services that are provided are excellent. The truck has a potential to grow because of the number of customers that it serves in one day. There are different aspects that put the growth of the fast food truck in an advantageous position

1. Quality services and burgers

The growth of any organization is dictated by the quality of services and goods that it offers. The case is not different at the Fast Food Truck. The truck offers quality services to the employees, and that affects the growth of the small business (Allegretto et al. 2013). On the other hand, the quality of burgers has never been compromised since the truck opened its doors to the customers. Customers play a big role in ensuring that the growth of a company is experienced. When they are provided with quality goods and services, they tend to be loyal to the organization thus having an effect on the growth of the company. Such is a strategy that is applied by the Fast Food Truck.

1. Dedicated employees

Employee dedication has a lot to do with the growth of a company or business. Employees; though a few, have played a crucial role in making sure that the Fast Food Truck grows. The employees are dedicated to offering services that are in line with the needs of the customers.

Maturity and trends

The food industry has been in place for many years, and that has contributed to its growth. Organizations like McDonald's are a good example of the level of maturity in the industry. Such means that the Fast Food Truck has a lot to gain by investing in a business that is in a mature industry. On the other hand, there are trends that are in the food industry that works to the advantage of the business. Such trends are;

1. Love for fast food

In the United States, the business of fast food has been experiencing growth. This is because most of the citizens like grabbing something to eat in their daily activities (Mihet, 2013). At the same time, most people prefer buying burgers rather than preparing them by their selves.

1. A busy society

Making ends meet needs a person who is dedicated. Most people like working for more than one shift. When such happens, it means that the people are likely to have less time to prepare meals. As a result, the people chose to buy fast food so as to save time.

Vulnerability to economic factors

In any given business, there are potential economic factors that might affect the operations of the business. In the case of Fast Food Truck, there are a lot of potential Vulnerabilities. Inflation is one of the economic factors that the business is vulnerable to. When the rate of inflation is high, the cost of running the business is affected. Wage limit is also another economic factor. When the wage of the residents is low, it is more likely that they will concentrate many on purchasing basic commodities thus affecting the business.

Risk analysis

The Fast Food Truck faces the challenge of convincing the customers. There is a mentality in many customers that only the big established hotels and restaurants can offer a good meal. With such notion, the customers tend to seek for services from restaurants. At the same time, the truck is faced with a challenge of making sure that it has all resources needed. Unlike other hotels and restaurants, the Fast Food Truck cannot carry the resources it needs like water in bulk. This is because the capacity of the truck might not accommodate all the resources that might be needed. Such limits the efficiency and the activities of the fast food truck (Vu et al. 2017).

Seasonal factors

The weather is one of the factors that are likely to affect the Fast Food Truck seasonally. There are times when the rains are heavy. During such a time, the truck is limited to offering services to the customers. Cold seasons have the same effects as rains. People tend to stay at home during the cold and rainy seasons. Putting into consideration that the business depends on the residents, when they spend most of their time at home it becomes difficult for the business to grow. At the same time, during rainy and cold seasons, the residents prefer buying coffee rather than burgers (Nag et al. 2014). Such affects the sales of the Fast Food Truck which might even lead to business dissolution.

Barriers to entry

One of the barriers to entry is the capital needed to start a business. A fast food truck might look like a simple business, but it needs a lot of capital to start. This is because one must have a truck and in place. A truck alone is not enough; the truck must be made in a way that the operations of the Fast Food Truck are not affected. Such means installing cookers in a way that they are not a threat to the employees. On the other hand, there are restaurants that are already in place and are already well established. The residents need to be convinced to start buying from the truck which might need a lot of resources and time (Nag et al. 2014).

Technological factors

Online marketing and business have become common in many states. In the modern day, one can make an order from one of the restaurants and wait for the delivery from the comfort of his or her home. Such might affect the business because people would see no need of seeking the services of the truck which forces them to leave their houses. At the same time, advancements in technology are taking place at an alarming rate. Soon there might be an invention of more efficient Fast Food Trucks which might force the current ones from the market.

Regulatory issues

The establishment of a fast food truck business has its fair share of disadvantages. First, one is expected to pay the truck license and the same time the food license. Due to health issues, the ministry of health must be involved in the whole process. The ministry comes in to make sure that the food sold in the truck is safe for human consumption. Therefore, the establishment of the business might be crowded by regulatory issues (Vu et al. 2017).

Supply and distribution

To make sure that the business is competitive, it will establish a service that is aimed at taking products at the doorsteps of the customers. Home delivery will make sure that customers do not prefer services of other businesses over the services of the Fast Food Truck.

References

Mihet, R. (2013). Effects of culture on firm risk-taking: a cross-country and cross-industry analysis. Journal of Cultural Economics, 37(1), 109-151.

Nag, B., Han, C., & Yao, D. Q. (2014). Mapping supply chain strategy: an industry analysis. Journal of Manufacturing Technology Management, 25(3), 351-370.

Allegretto, S., Doussard, M., Graham-Squire, D., Jacobs, K., Thompson, D., & Thompson, J. (2013). Fast Food, Poverty Wages: The Public cost of low-wage Jobs in the fast-food industry. UC Berkeley Labor Center. Available at: http://laborcenter. Berkeley. Edu/public costs/fastfoodpovertywages. SHTML.

Vu, H. M., Vu, H. M., Chan, H. K., Chan, H. K., Lim, M. K., Lim, M. K., & Chiu, A. S. (2017). Measuring business sustainability in food service operations: a case study in the fast food industry. Benchmarking: An International Journal, 24(4), 1037-1051.