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Government
Chance
Factor Conditions
Related and Supporting Industries
Demand Conditions
Firm Strategy, Structure and Rivalry

Daniela Carrillo Flores a01569194Luisa Fernanda Vargas Peralta a01569136Fernanda Romero Tavarez A01567215Fernanda reyes franco A01563546

September 29th, 2024

Porter's Dimond

Fast food industry in Mexico

Fortune Business Insights. (s.f.). Fast food market size, share & COVID-19 impact analysis. Fortune Business Insights. Recuperado de https://www.fortunebusinessinsights.com/fast-food-market-106482Mordor Intelligence. (n.d.). Mexico foodservice market - Growth, trends, COVID-19 impact, and forecasts (2023 - 2028). https://www.mordorintelligence.com/industry-reports/mexico-foodservice-marketABCDigital. (s.f.). Marketing digital en México: ¿Cómo puede impulsar tu empresa? ABCDigital. https://www.abcdigital.mx/agencia/marketing-digital-en-mexico-puede-impulsar-tu-empresa/#:~:text=Seg%C3%BAn%20Statista%2C%20la%20publicidad%20en,millones%20de%20d%C3%B3lares%20en%202021.

Firm Strategy, Structure, and Rivalry
  • International chains: brings competition,encouraging innovation, efficiency, and better service.
  • Local Chains and Street Food: Strong competition which drives domestic players to differentiate themselves
  • Branding and Marketing: Focus on customer loyalty programs, promotions, and brand differentiation.

Secretaría de Economía. (n.d.). Mexico: Country profile. DataMéxico. https://www.economia.gob.mx/datamexico/en/profile/geo/mexicoGobierno de México. (s. f.). Secretaría de Agricultura y Desarrollo Rural. Gobierno de México. https://www.gob.mx/agricultura

  • Labor force: Large, young, and relatively inexpensive labor force, which gives an advantage for the fast food industry, where workers can do low skilled jobs but also managerial positions.
  • Raw Material Availability: Rich agricultural sector, having easy access to fresh ingredients like vegetables, fruits, meat, and grains, reducing costs for fast food chains in terms of supply chain logistics.
  • Cost of Utilities: Low costs of utilities like gas and electricity, which is an important factor on the industry allowing fast food chains to maintain competitive pricing while preserving profit margins.
Factor conditions (advanced)

America Retail. (2023). La comida rápida en México: Un mercado en constante crecimiento. https://america-retail.com/paises/mexico/la-comida-rapida-en-mexico-un-mercado-en-constante-crecimiento/#:~:text=El%20mercado%20de%20comida%20r%C3%A1pida,comer%20este%20tipo%20de%20comida.The Food Tech. (n.d.). La comida rápida en México se pone conveniente y saludable. The Food Tech. https://thefoodtech.com/tendencias-de-consumo/la-comida-rapida-en-mexico-se-pone-conveniente-y-saludable/#:~:text=As%C3%AD%2C%20el%20tama%C3%B1o%20del%20mercado,15%20mil%20millones%20en%202032

Strong home demand

Demand conditions
  • Growing Middle Class: Rising disposable incomes in urban areas drive demand for fast food, making it a popular choice for convenience and affordability.

Industria de envase y embalaje en México creció 5.1% en 2022: ANIPAC. (2023, marzo 30). Plásticos en México. https://www.pt-mexico.com/noticias/post/industria-de-envase-y-embalaje-en-mexico-crecio-51-en-2022-anipacInfoChannel. (n.d.). ¿Qué innovaciones transforman al sector de la logística en México? InfoChannel. https://infochannel.info/noticias/channel/que-innovaciones-transforman-al-sector-de-la-logistica-en-mexico/

Related and Supporting Industries
  • Agriculture: Strength of Mexico’s agriculture sector supports the fast food industry with a steady supply of affordable, fresh ingredients
  • Packaging Industry: The grwoth of this industry provides efficient and sustainable packaging solutions for fast food chains.
  • Logistics and Transportation: Better distribution capabilities, reducing delays and ensuring product quality.

Ingredion. (n.d.). La mayoría de los mexicanos prefieren ingredientes naturales en sus snacks. Ingredion. https://www.ingredion.com/na/es-mx/resolviendo-desafios/innovando-con-idealabs/snacking/snacking-troubleshooting/la-mayoria-de-los-mexicanos-prefieren-ingredientes-naturales-en-sus-snacks.htmlMcKinsey & Company. (n.d.). How we help clients: Sustainability. https://www.mckinsey.com/capabilities/sustainability/how-we-help-clients?cid=susti24-pse-ggl-mbm-m01-esg-nsa-com&gad_source=1&gclid=CjwKCAjw9eO3BhBNEiwAoc0-jQS3ZSgIQxH9VPVZzMn-aQ5pZFpNHFq1HZ6XBSg-qg6XFuhbNb7orRoCfc0QAvD_BwE

Chance (unpredictable events)
  • Global Supply Chain Disruptions: Could impact the access to certain ingredients and raw materials, pushing local sourcing.
  • Consumer Preferences: Health-consciousness or sustainability can reshape the demand landscape.
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NCD Alliance. (n.d.). Prohibiciones de comida chatarra en México. NCD Alliance. https://ncdalliance.org/es/acerca-de-las-ent/historias-de-cambio-videos/prohibiciones-de-comida-chatarra-en-m%C3%A9xicoMinu. (n.d.). Salario mínimo en México: Todo lo que necesitas saber. Minu. https://www.minu.mx/blog/salario-minimo-mexico

Government
  • Health Regulations: Food safety and the introduction of calorie labeling requirements push fast food companies to improve quality and transparency.
  • Minimum Wage and Labor Laws: Affect the industry’s cost structure