Monday, 25 September 2017

Swot analysis of fast food franchise sector in India


Swot analysis is essential to obtain valuable information about any business, sector or industry. You can identify strength, weakness, opportunities and threats. The fast food franchise industry is rapidly increasing due to large demand for ready-to-meals. The food sector has emerged as high-profit and valuable sector for Indian economy as it provide employment to millions of people across the country. Competitors in fast food industry seem to invest huge amount in marketing and research activities to gain immense popularity among public. In addition, ready-to-eat food items are consumed largely around the globe. Thus to start new foodservice outlet you should know current market position.
Strengths
Investing in well-established fast food franchise sector is profitable. Franchise model is effective for entrepreneurs who don’t have knowledge or experience of industry. Indian consumers are lot more educated and aware about latest food standard practices and good quality food. New players can take advantage of latest trends to develop delicious fast food cuisines. You can natural ingredients, herbs or spices to beat counterparts. Low start-up cost is one of the strengths of this sector.
Weakness
Fast food sector is highly competitive, though there are immense opportunities for new operators to enter into market. Existing players in India can’t sit idle as they can be replaced by new player at any instant of time. It is flexible industry, you have to build unique business model to best counterparts. Metros across the country are already filled with popular food franchise chains.
Opportunities
You can dominate the market if you able of produce new flavourful, delicious and incredible recipes at reasonable prices. People become busier these days there demand ready-to-eat meals each day, for instance burgers, pizzas and French fries are among high consumed fast foods around the globe. Huge opportunities will be generated in coming years as customer choice and preferences are fast food cuisines.
Threats
Rise in raw materials prices affect small, medium and large scale enterprises. People are concern for nutritional benefits of fast foods they don’t want factory-made preservatives or additives added in cuisines. Intensive competition from casual dining restaurant is threat to existing as well as new fast food franchise players.
Swot analysis gives you little knowledge about current market position. Foodservice business is advantageous if you able to retain customers for longer time.   It is the great opportunity for fast food operators to generate huge revenues because customers in this age and day demand quick meals.

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