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In addition to that, these restaurants have such different
target customers that the fluctuation of price for one restaurant is not going to
affect the others. For example, a full meal at KFC range about ?15, whereas a full
meal at Pizza Hut can cost over ?50. The drastic difference in price assures no
price competition between these restaurants
Buyer/Supplier Bargaining Power
The customers of KFC, especially as individual buyers, have almost no
bargaining power because if only one customer threatens to no longer eat at KFC,
the store is not going to lower its price because the cost of losing one customer is
not very great...
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