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Competitive Forces - Strategic Mangement
Competitive Forces - Strategic Mangement
When the market is saturated, the competition is more intense. While a restaurant is doing a
strategy of lowering prices to “attack” the other restaurants, another one is creating a strategy to
counter the other strategies. Colombia is a very competitive country in terms of its restaurants,
they constantly seek to find new ways to compete and remain notable, this is reflected in a quite
evident and visible rivalry. An example of this competitivity and sales strategies we can found the
case of an “e-commerce” restaurant with a big strategy that allows it to become competitive
faster in the market. Fasfú Burgers is a fast-food restaurant created by the famous Mexican
youtuber Luisito Comunica. As this restaurant belongs to this famous, he uses his own image as a
marketing strategy which allows him to position its company faster in the market. Thus, becoming
a direct rival for other restaurants based on e-commerce.
This rivalry can be seen as an opportunity to constantly keep improving and innovating for the
best. However, it can be a risk because the market is saturated and getting noticed and
distinguished from others can become increasingly difficult.
In Colombia there is a price war between the different companies. Switching costs are medium
high, because competitors they cannot switch activities easily and the level of advantage provided
by the company is in equilibrium.
This also implies a high level of price rivalry. The degree of Overcrowding is high, because
companies in this sector are easily imitated and there is little difference between them in terms of
products and services that they present to the consumer. Distinguish yourself from the
competition then becomes a necessity, innovate through other means to be competitive, not
focusing solely on prices.
References:
LA USADA ANTERIORMENTE
Roa, J. ´P., Saavedra, S., & Lozano, C. (2011). (rep.). Turbulencia empresarial en Colombia:
sector restaurantes comidas rápidas: Kokoriko, Frisby y La Brasa Roja (p. 23). Bogotá D.C: Centro
de Estudios Empresariales para la Perdurabilidad (CEEP).
References:
Roa, J. ´P., Saavedra, S., & Lozano, C. (2011). (rep.). Turbulencia empresarial en Colombia:
sector restaurantes comidas rápidas: Kokoriko, Frisby y La Brasa Roja (p. 23). Bogotá D.C: Centro
de Estudios Empresariales para la Perdurabilidad (CEEP).