Nandos Case Study

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Step 2, the industry in which the business operates Fast-food is easily prepared processed food served in snack bars and restaurants as a quick meal or to be taken away. (Google, n/a) The fast-food industry is made out of multiple fast-food restaurant chains, which contribute to one of the biggest industries world-wide. Nando’s is a well-known competitor in the fast food industry. With over one-thousand outlets internationally it can be said that Nando’s is a well-established restaurant chain which originated in 1987, South Africa. Nando’s is said to be part of the Fast Food Industry but can be sub-classified into casual dining. Nando’s focus point is on Portuguese, peri-peri chicken, which is where it got all its fame and interest from. Nando’s,…show more content…
KFC’s main target market is based around the youth community that is willing to follow the western lifestyle. KFC believe that this targeted segment could potentially attract other customers to that type of food. (Nandos Strategy, 2014) Discos’ major target market involves middle-school and college students, blue collar workers, and families with children. Disco aims to provide their goods at an affordable price for their customers in order to get a good response from the market. (Nandos Strategy, 2014) KFC and Discos have both bought into the different types of pricing strategies such as Psychological Pricing and Differential pricing in an attempt to capture more of the…show more content…
(Hubpages, 2010) The first began in World War I, with the reduction of trade barriers and the improvement of technology, mainly that of transportation techniques. The next wave, the second wave, took place during the mid-1900s, during which multiple trade agreements occurred between developed nations. The ‘current wave’ of globalization has taken place due to the willingness of developed nations to remove trade barriers in order to attract foreign capital. (Hubpages, 2010) Globalization has allowed major leaders such as McDonalds, Burger King and Wendy’s to dominate the market share. Globalization has been a key factor in their rapid expansion, due to the fall in ‘red tape’, trade barriers and the net increase in trade agreements signed. This has allowed the fast-food industry to be remodelled into an oligopoly. An oligopoly states that there are few large sellers in an industry, that there are significant barriers to industry and that market actions of one seller can have a strong effect on competitors. Although there are many fast-food businesses such as Steers and Roman’s Pizza, these businesses are generally regionally based and have very little influence in the market as a whole. Thus the fast-food industry can be classified as an

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