Strategic Management of Red Rooster in the Fast Food Industry of Australia

Running head: STRATEGIC MANAGEMENT
Strategic Management
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1STRATEGIC MANAGEMENT
Executive Summary
The present report is conducted on the fast food industry of Australia particularly considering the
operation of Red Rooster, which is a fast food chain restaurant providing services across
Australia and New Zealand. The fast food industry in Australia is running the operation in a
competitive environment, where competitors’ market share is rapidly increasing but due to high
quality of product, Red Rooster has been able to build a significant market position. In order to
identify the current strategic position of the chosen organization, a porter’s five forces analysis
has been conducted which indicates that suppliers have low bargaining power. This means, the
firm might not face crisis of resource over coming five years. However, high competitive rivalry
in the industry damages the popularity of Red Rooster. Moreover, due to instable economy, the
consumers tend to switch to low cost vendors providing substitute items. Due to lack of
promotional activities, the firm is not able to increase its customer base. The customers in the
remote location hardly know about the products of Red Rooster. Thus, to improve or increase
customer attention, Red Rooster has been proposed with Digital media marketing.

2STRATEGIC MANAGEMENT
Table of Content
Introduction -...................................................................................................................................3
Porter’s five forces...........................................................................................................................4
Value chain of Red Rooster.............................................................................................................7
Primary activities.........................................................................................................................7
Support Activities........................................................................................................................9
Key findings and recommendation-.................................................................................................9
References and Bibliography.........................................................................................................11

3STRATEGIC MANAGEMENT
Introduction -
The following report is based on the strategic management of Red Rooster –a fast food
chain restaurant located in Australia. The fast food industry in Australia often faces a significant
change in consumer preference, which leads to influx of new business providing high quality fast
food alternatives. However, as the demand of fast food items in the sector is high, the existing
organizations adapt to the new trend. The fast food industry has been selected for the assessment
in the current report because the fast food sector has increasingly become competitive and started
contributing a large amount to the GDP. Thereby, it is necessary to conduct a research on the
sector to learn about the forces that drive the growth. Here, Red Rooster has been selected
because the chosen organization is one of the rapidly growing organizations throwing
unexpected challenges to its competitors. Thus, conducting on report on Red Rooster would help
to learn the current innovative marketing strategies.
The fast food restaurant chain Red Rooster was established in 1972 and within a short
period of operation, Red Rooster became one of the leading fast food brands with its increasing
range of products such as roasts, half roast, wraps, burgers, fish items, deserts and beverage (Red
Rooster 2018). By 2012, Red Rooster opened up 360 stores across Australia and New Zealand.
The firm has large workforce, which enables them to provide a superior quality of service across
the nation (Red Rooster 2018). Moreover, online selling opened by Red Rooster helped to
penetrate in the wide market where its outlets were not available. The presence and extending
operation of Red Rooster contributed to the revenue growth of the fast food industry. As put
forward by De Vogli, Kouvonen and Gimeno (2011), the revenue is expected to maximize at an
annualized 3.7% by 2017-2018 to $19.8 billion.