The biggest opportunity for bargaining, however, is in the acquisition of all of the fresh food items that Multi-Fry-er will need to fill the customers’ orders. One of the benefits that they have is that the staple item that their product is based on is potatoes. Potatoes are a relatively inexpensive and abundant product so they should stay available throughout all seasons and stable price wise. For the other items chosen, the bargaining position will vary. Some of these items will fluctuate in price due to seasonal changes, shortages, and surpluses of those products. An example of this is fresh corn. Corn is widely available during the summer months at lower prices. Winter, however, shows an increase in the price of fresh corn due to the lack of available crops. Multi-Fry-er would then have to decide to continue to use this product at the higher price or go to another option such as canned. In this option, the supplier has the advantage. The only option Multi-Fry-er could have would be to advocate the purchase of the entire lot of corn at a discounted price. This way the supplier would sell out of their item with little loss and Multi-Fry-er would have an item they wanted. To combat this Multi-Fry-er might have to keep their menu fluid and available to be changed to coincide with what products are the freshest for the season.

Rivalry among Competing Firms

The external environment plays a critical role in shaping the future of entire industries and those of individual businesses (Hitt, Ireland, & Hoskisson, 2015). The Multi-Fry-er will know who its direct and indirect competitors are. Knowing the competing firms will help the Multi-Fry-er adjust their menu, allowing their unique food options and customer service stand out. By setting competitive prices and utilizing innovative marketing campaigns, Multi-Fry-er will stay ahead of the competition. The Multi-Fry-er has a new, authentic brand that’s relevant to their market and will offer options competitors won’t. The brand will also connect directly with patrons on social media and engage their followers in a fun way. The Multi-Fry-er will compete consistently with rivalry competition by offering a higher quality menu with easy to eat, vegan, and organic options that meets the needs of the customers. By offering superior service and convenience, the Multi-Fry-er Food Truck will separate itself from rivalry firms and create a following of customers looking for a food truck going above and beyond what customers have come to expect. These values will build customer loyalty and put the Multi-Fry-er food truck a step above its rivalry competing firms.

Competitive Advantage

The sources of competitive advantage start first and foremost with the people, the team internally. The staff behind Multi-Fry-er drives the competitive advantage the most. The staff is motivated to succeed by an innovative employee compensation program. Happy employees bring enthusiasm to their jobs (Hyken, 2017). Employees then create, craft, innovate, and establish relationships in the community in order to generate business. Multi-Fry-er might have a big competition line up when it comes to other food trucks in the industry, but no other food truck can copy the staff that is on deck. Some of the other sources of competitive advantage that Multi-Fry-er has is the culture of the organization, the processes and practices that are in place, the products that are used, and local resources that are incorporated into the menu. The culture in the organization is one that will be directly reflected to the customer. Multi-Fry-er wants to deliver a happy, bright, and unique experience to keep the customer frequenting the food truck. The Multi-Fry-er uses a unique cooking process and the freshest ingredients to create fries the competitors will have a difficult time duplicating.

International Entry Modes

Multi-Fry-er’s global expansion will be executed through an affordable and low risk licensing program (Miley, 2018). Through an easily duplicated business model, interested buyers can successfully start a Multi-Fry-er business. Licensing opportunities would consist of a detailed contract that would allow the new business owner to purchase equipment, complete training, and utilize the established Multi-Fry-er name, designs, menus, and ongoing support. Certain expectations will be outlined in the contracts to ensure new owners uphold Multi-Fry-ers exceptional standards.

Global Expansion: Canada

Multi-Fry-er will start it’s expansion in Canada because of the similar economy and culture to America. Multi-Fry-er would begin it’s efforts in highly populated provinces. The food truck industry is booming in Canada where street vending has been one of the best-performing industries five consecutive years. According to a recent research report in May of 2018, Canadian street vendors have made 314 million annually with annual growth of 2.3% (Street vendors, 2018). Since Canada is a neighboring country, Multi-Fry-er will be able to easily transport it’s trucks to new buyers. French is the other language widely spoken in Canada provinces, so Multi-Fry-er will ensure it has a team of French speaking employees to accommodate the needs of prospective buyers. Additionally, Multi-Fry-er would ensure that all business material is in English and French to ensure new franchisees can communicate effectively with the customer base.

Outlook, Forecast, or Trends

Food trucks are organizations that are equipped to prepare and sell food. Food trucks are such as sell frozen, prepackaged food or ice cream trucks, (Mintzer, 2015). In many circumstances, food trucks have their own kitchens and prepare food on the spot. External environmental analysis is the process where food truck organizations identify all the external elements that can affect the performance of the organization. The external analysis assesses the presence of the level of threats and opportunities of the factors. Some of the threats and opportunities that may affect food truck organizations are as follows.

The price index of the agricultural products is an indicator of the price merchants can hope to pay for the ingredients expected to set up their suppers. At the point when the costs of these ingredients increment, working costs increment also, ordinarily bringing about lower overall. The industry is threatened by any rise of price of the agricultural inputs.

The business gets profits by development in purchaser spending. The inevitable spike in unemployment has resulted to consumption decline during time of recession. At the point when there is high buyer spending, consumers are bound to spend much money on feasting out in food trucks. The potential opportunity for the industry is presented by the expected increase on consumer spending.

Conclusion

The five forces of competition, competitive advantage, international entry points, and current trends reveal a number of ways that Multi-Fry-er can improve their product and build on their strengths. By catering to the current cultural interest in unusual and authentic food, Multi-Fry-er can leverage its unique product and by paying branching into other countries through franchising opportunities, Multi-Fry-er can expand its brand. By combining cutting edge technology, fresh local produce, and highly engaged staff, the Multi-Fry-er will stay ahead of the competition and maintain its competitive advantage.

References

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Hyken, S. (2017). How happy employees make happy customers. Forbes. Retrieved from https://www.forbes.com/sites/shephyken/2017/05/27/how-happy-employees-make-happy-customers/#358ff7975c35

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Mintzer, R. (2015). Start your own food truck business: Cart trailer kiosk standard and gourmet trucks mobile catering bustaurant. Entrepreneur Press.

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