1. Melbourne & Perth, Australia
The purpose of this report is to provide insights into the Australia’s fast casual restaurant industry and the level of competition of Manhattan Fish Market were in the new market, Australia.
Through the brief overview of Australia’s Political, economic, Social, Technological and Environmental factors to gain a better understanding of the external environmental factors of Australia.
With the application of Michael Porter’s three out of five forces of the model, 1. Bargaining power of buyer 2. Threats of substitutes 3. Intensity of rivalries in fast casual dining to access the level of competition that Manhattan Fish Market were to ...view middle of the document...
Religious belief is pretty diversified in Australia due to the amount of migrants with Catholic being the majority. With a score of 5.66 out of 6.7 (fig1.), transportation infrastructure of Australia is well established which makes travelling around easy. Australia is very proactive in their environmental campaigns and is a big supporter of preserving the environment.
Due to the changing social trends it has fueled the growth of Australia’s restaurant industry over the past five years. In this generation hardly anyone knows how to cook, even if they do people cannot find the time to do so hence more and more people opt to dine out. This is seen from the average annual growth of Australia’s restaurant industry of 4.3% annually from 2011 – 2016, with total revenues of 12 billion (Fig 2). Also, restaurants have allowed consumers to combine dining with leisure which is much needed due to the busier lifestyles that people lead now. These trends are expected to continue over the next five years with higher growth expected in the coming years. In addition, the rise of social media has encouraged people to look for food with good presentation and great taste leading to the rise of more fancy restaurants.
Bargaining power of buyers is medium:
Bargaining power of buyer is determined by the number of buyers and volume of their purchase. Australia is occupied by migrants from all over the world. Perth has a population density of 315 people per square kilometers. While Melbourne has a population density of 440 people per square kilometers. Since the population density of both Perth and Melbourne is high it can be said that there is large number of buyers for the restaurant industry. This reduces the bargaining power of buyers as restaurants have a large number of buyers and are not afraid of not having enough buyers.
Australian’s household are spending more on food and drinks than before. With each year passing, the gross income of an Australian increases much faster than food prices, which means households are spending smaller portions of their budget on food and drinks. Statistics shows that in 2009-10, food and alcoholic drink made up 16.5 percent of household spend, compared with 20 percent in 1984. Hence with higher gross income of households also means that Australians has higher disposable income which allows them to spend more on dining outside. “In real terms, spending on food has increased 30 percent (over the past 20 years) while incomes have risen 36 percent,” according to the Department of Agriculture, Fisheries and Forestry 2012 foodmap report. Thus, this increases the bargaining power of buyers as Australians are able to spend more on food due to a higher gross household income.
A restaurant is characterized by their food standards and service standards. The way how food is cooked and its taste differs from restaurant to restaurant. The key to success for restaurants is by differentiation from other restaurants. For...