ADMS 1000 Lecture : assignment 2
7 Oct 2019
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THE NORTH AMERICAN FAST FOOD INDUSTRY
During the Emergence Stage, the fast food industry had low rivalry because there were
not a lot of new entrants to the industry. There were not a lot of fast food restaurants open for
businesses to worry about competition, instead they focused on research and development on
new products for consumers. The customers were early technological adopters who wanted to be
the first ones trying the new products available in the market. Other consumers were skeptical
and unsure of the products offered to try them since the industry did not conform to institutional
norms. The technological development was also rapid with companies creating machines and
assembly lines to make it more efficient to produce the food. The small amount of entrants in the
industry meant that the fastest and most advanced restaurants would receive the most sales.
Businesses wanted the most innovate products to appeal to early technological adaptors.
During the Growth Stage, the fast food industry’s critical functional areas were sales and
marketing. Companies focused on growing sales by advertising their products and appealing to a
wider market. The focus was shifted from creating innovative products to bringing in more
customers and appealing to wider demographic of customers. Their products were standardized
and were similar to products of competitors. Most restaurants offered the similar products like
burgers, fries, and hotdogs. As a result, the strategy of businesses was to differentiate their
products from competitors and offer unique combinations or toppings. Rivalry was increasing
with many new entrants to the industry who had similar products and prices. Businesses would
enter and exit the market, dominant restaurants saw growing sales due to their increasing
recognition and familiarity to the public.
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