Results and Discussions

A Threat to New Entrants

Within the five forces model, the factor of Threat of New Entrants analyzes how likely it is for a new entrant or entrants to enter the competitive environment a company operates within. There is less chance of this happening if there are at least some form of barriers to entry into the industry such as strict regulations, need for specialized knowledge or high investment requirements.

Leylam Shawarma’s strongest points against the New Entrants specifically in Shawarma food chain is that, the company has already been establish the brand, penetrating the market widely, particularly major cities in Luzon, Visayas and Mindanao. Leylam is well known in serving healthy, clean, and tasty shawarma because of its distinct sauce and sold at a reasonable price. The company has high capability in expanding the market nationwide as they are the first to be given favourable access of key distribution network.

However, the company continue facing its huge challenge in competing against the New Entrants that are selling substitute products. Since there are no significant barrier to entry, a lot of food businesses selling to the same customers, same foods everywhere in the streets not just in Urban Areas where most Top players are situated in accessible areas like Jollibee, Mc Donald, Chow king, Mang Inasal, restaurants, Pizza, standalone food junction and etc., and even in Rural Areas where various of carenderia food stores are available.

Bargaining Power of Suppliers

The bargaining power of suppliers can greatly affect a fast food restaurant's ability to make a profit. If suppliers have heavy influence on the market, income projections may need to be adjusted in order to account the increased supply prices. That’s why food market players or business owners should consider this aspect of bargaining power of supplier before entering into the industry.

Leylam Shawarma is currently dealing with quite numerous number of suppliers both local and...