Competition Analysis in the Food Industry

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Added on  2020/04/21

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AI Summary
This assignment delves into the competitive landscape of the food industry, specifically focusing on a hypothetical firm entering the market. It analyzes direct competitors like home-cooked meal delivery services (e.g., Yadoh Fatima) and indirect competitors leveraging restaurant-linking apps (e.g., Keza). The analysis also explores barriers to entry in the UAE market, such as the need for technological readiness and the dominance of well-funded players.
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Running head: COMPETITION 1
Competition
Name:
Institution:
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COMPETITION 2
1) Description of Competition
The firm will face a stiff competition from various direct competitors including hotels
and restaurants around the University offering the same products and indirect competitors. The
specific competitors will include Zamato, Talabat and Makemymeal. Thus it will face
difficulties through direct and indirect positioning of its products. It will face direct competition
from Yadoh Fatima that is really finding traction in the area when it will be delivering same
foods to same market. This is Yadoh Fatima is also a home-made food delivery business
focusing on traditional dishes mainly serving the Sharjah Health Authority and Sharjah Police
customers (Kim & Mauborgne, 2014).
The firm will face indirect competition from other restaurants, hotels and other home-
made food delivery firms that will be serving different market but use the restaurant-linked app
Keza which stays on radar of foodies and outlets by bridging the gaps between reality and
expectation in UAE dining world. The indirect competition will thus be stiff as this app is the
only solution bringing diners, restaurants and suppliers together on a single platform. By merely
signing in to Keza, one will be able to explore restaurants around, and choose the preferred
service, eat with her eyes even before ordering, requesting the service, paying and split. Thus,
this app makes the competition as stiff as one can compare and contrast all the available facilities
and choose the best (Kurata, Yao & Liu, 2007).
2) Barriers to Entry
In UAE, there are over 11,000 “tech ready” restaurants and this is creates a barrier to
entry as any startup must be tech ready which can be a bit costly. The dominant players are
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COMPETITION 3
already expanding beyond their niches to reach novel customer via meal kit delivery services
thus creating barriers as competition become stiffer. Startups without economies of scale are
locked out because they cannot make margins as they lack funding s yet the major players have
funding that get them to scale at any cost.
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COMPETITION 4
References
Kim, W. C., & Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Kurata, H., Yao, D. Q., & Liu, J. J. (2007). Pricing policies under direct vs. indirect channel
competition and national vs. store brand competition. European Journal of Operational
Research, 180(1), 262-281.
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