Threat of new entrants into the Fast Food market within Hong Kong is low as a whole of industry as the large established fast food brand companies which have economies of scales of production costs, it makes the price of products even competitive.
2) Bargaining Power of Buyers
It is expected that consumers in HK do have some bargaining power that they can choose what type of fast food restaurant they want to go to. However, location and type of food may reduce this bargaining power.
As consumers would not have access to the same equipment and food supplies that the fast food restaurant does. It would be difficult for consumers to duplicate the taste of the meal at home, in addition to the atmosphere that attracts them. The BBC news indicates that Hong Kong is the top city in consuming fast food over the world (BBC, 2004).
The customer bargaining power is low for fast food industry.
3) Threat of Substitutes
The generic product of fast food is mainly considered as convenience.
The threat of substitute products is mainly found in the frozen food section of the supermarkets. The substitute product offers both cheap value meals and quality products.
But still the frozen food has an image problem with their food. Even though it can offer the same quality, convenience and