Guzman Y Gomez Competitive Analysis
Added on 2020-03-23
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ContentsIntroduction...............................................................................................................................................3Analysis of the literature review of Guzman Y Gomez..............................................................................3Analysis of competitors.............................................................................................................................9History of the company.............................................................................................................................9Products offered by McDonald`s...............................................................................................................9Business model........................................................................................................................................10Strengths and weaknesses of MacDonald`s Australia.............................................................................10Strengths..................................................................................................................................................10Weaknesses.............................................................................................................................................11Opportunities...........................................................................................................................................12Threats.....................................................................................................................................................12Industry analysis......................................................................................................................................13Challenges facing the industry.................................................................................................................13Trends in the industry and responses to the challenges.........................................................................14
IntroductionGuzman Y Gomez is a restaurant chain operating in Australia. The restaurant chain specializes in foods such as nachos, quesadillas, burritos and other traditional dishes. The model of the business is a franchise and it has more than 64 stores operating in Australia. The franchises also operate several outlets in Singapore and some in Japan. The company has an aggressive expansion strategy that has helped the company to expand in Australia over the years and also outside Australia. The first outlet was opened in the year 2006 in Newton, Sydney. Within a year of opening the first restaurant, two more followed closely with Bondi Junction and the Kings Cross branches opening. The first Guzman and Gomez branch in Melbourne was opened in the year 2012.The businesses strategic plan is to expand to all the major urban areas inAustralia while at the same time expanding internationally. The local market has a lot of potential for growth and therefore, the company is dedicated to committing its resources to enable expand. The aim of the expansion plan is to help increase the profit margins while at the same time growing their brand name. The company has five restaurants in Singapore which are performing extremely well. The restaurants are gaining a lot of customers in Singapore due to their specialization in Tex-Mex dishes. The business began with 15 staff in its Newtown and currently, it has more than 100 staff. The initial investment by the company was about $450,000. Currently, the business has annual revenues in excess of $4 million (Perritt, Henry 2016). This case study analyzes the history of the company, the ownership model and the strategies that the business has employed to become successful in the market. The case study report also identifies the Analysis of the literature review of Guzman Y GomezIn its expansion plan. The business needs to put into consideration the various factors that could have an impact on the business. The first idea is the changing in the form ofbusiness to make it a franchise. The factors such as the effect on the ownership forms and the financing method need to be discussed before making important financing decisions. Currently, Guzman and Gomez have been the fastest growing brand in Australia for the past one year. The restaurant serves Mexican food and it has an eye for good customer relationship and service. The literature review evaluates the mission and vision of Guzman and Gomez. The mission of the company is to become
a global leading restaurant chain specializing in Mexican dishes. The vision of GYG is to expand and reach customers both locally and abroad while fulfilling the needs of consumers and giving customers value for their money. The literature review also signifies the importance of specialization in the growth of Guzman. The company’s specialization in the Mexican dishes has helped GYG to cut a niche for itself in the competitive restaurant chain. The case study mainly focuses on the companies` expansion plans. The study analyzes the core factors that are important for the company to expand successfully. These factors are the potential of the new market, the marketing mix of the company, communication plan, promotion strategies and the resources available to finance the expansion. The management of the company intends to expand the company because of the increased demand it has witnessed from customers. The ability of the company to meet the needs of the customers has endeared it to many customers in different locations in Australia. The standards of service at the Guzman Y Gomez also make it an attractive restaurant for many customers who love Mexican dishes. Due to this demand, the ownership of the company saw it fit to adopt the franchise model in orderto help reach the unexploited market. Failure to exploit this market may lead to competitors taking advantage of the gap and hence the company will lose an important investment opportunity. The franchisee model will allow a new strategic investor to inject capital into the business in exchange for a share of the company. Thenew capital will be used to open new branches for the company and hence reaching more customers and making the brand more popular. The management of the restaurant believes that there are two kinds of customers. The first type of customer is the one who prefers fresh guacamole and the second one is wrong (Ritzer, 2011). The restaurant aims at offering customers fresh food and of the best quality without compromising anything. This has been important in retaining existing customers and in attracting new customers. The literature review also explains the benefits of expanding the Guzman and Gomez.The main purpose of franchising the business is to help expand the geographical coverage of the company. The franchising is meant to help the company open many more branches in various locations locally and abroad. The expansion will also help the company to hire new personnel and hire more facilities to open up new branches.
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