- Number of buyers: Since there are only a few Vietnamese who prefers fast food, the fast food industry in Vietnam is not expanding as well as expected.

- Money income: With reference to the CNBC Vietnam video, it was mentioned that most locals prefer consuming local food from local food vendors mainly because local food are much more affordable as compared to the food at fast food restaurants.

- Price of related goods: Also, Vietnamese are spoiled for choice for food since there are many food vendors selling local food at cheaper prices, this defeats the value proposition of the fast food industry in Vietnam.

- Vietnamese prefer to share their food when eating in groups (such as with families or friends). Therefore, their go to food options will be hotpot, etc. and not fast food as burgers are not great to be shared.

Q. Identify the specific demand determinants you have explain above (T.E.N.P.M) to apply economic concepts more specifically.

Remember to expand your points about the local preference in your report.

Elasticity
- Fast food is a price elastic demand.This means when there is a change in price of fast food items, there is a more than proportionate change in quantity demanded. 
-Firstly fast food has many substitutes.When the price of food from one fast food chain increases, consumers can easily look for cheaper alternatives.
-For example, when Mcdonald's burgers increase in price, consumers may turn to cheaper alternatives, such as burger king or kfc
- Secondly, the pricing in some fast food chains may be considered as a luxury to some consumers. This is depended on their usual spending habit on food and their income. For instance, if the consumer’s usual spend around $5 per meal, a $10+ Shack Shake burger would be considered too expensive and overpriced for them. 

- An example would be how fast-food chains, such as McDonalds, fail in Vietnam. Street foods are more popular among the local as compared to these fast food chains. This is because the pricing of their street foods are way cheaper than the pricing of fast foods. Thus, from the point of view of the Vietnamese, fast food would be considered a luxury instead. Hence, fast food would be considered a price elastic demand as consumers are less willing and able to buy fast food when the price increase.

- We have gathered responses, asking whether consumers would still purchase if price were to increase to prove this point
- As shown in the survey,
as the price of the fast food increases to a larger extent,the amount of people willing to buy decreases even more, suggesting that the price elasticity of demand for fast food is price elastic. Quoting our survey, 54.9% of people would still buy a MacDonalds' Value meal if the price increases from $5 to $7 while only 19.7% of people would buy the meal if the price increases from $5-$10.

Q. Besides availability of substitutes, there is at least one more price elasticity of demand determinants that could be identified to cause the price elasticity of fast food to be high. Try to identify and support your point in your report.

Price Competition
- Different brands can afford to sell at different prices due to the size and how popular the  company is.
- Following the economies of scale, large and more popularized corporations such as McDonald's can afford to drastically lower their price as they have the a certain degree of market power in the fast food industry, leading to even greater competition in the industry as smaller brands such as Burger King and Taco Bell fail to keep up with the rock bottom prices.

The fast food industry has an oligopoly market structure, as the entire industry is dominated by a very small number of firms.  As the brands of the few firms are so prevalent in almost every country and state, it is extremely difficult for small firms to enter the market. The established firms all have the benefit of the economies of scale and can afford to lower their prices, whilst the smaller firms cannot, thus consumers would definitely patronise the former. The products sold are also generally homogenous, with the majority selling burgers and fries, with some outliers such as KFC and Pizza Hut which sells fried chicken and pizzas respectively. With such few firms heavily dominating the market, they each possess a significant amount of market power.


Q. By observing the strategies adopted by the fast food chains, what can you infer about the market structure of this industry?

Stage 1 analysis comprised of also identifying the market structure of the product/industry (see highlighted portions in pic attached). As you continue to do your research, you will be able to identify the market structure eventually (in fact, there's one big clue in the cnbc video). 

As a guide, you might want to use the below slide from “Non-competitive markets”

Please refer to my specific feedback for your prelim analysis under the respective points (highlighted). I have also labelled my feedback with the topic(s) that I am referring to for easy reference. You could use them as your sub header in report too! Just a suggestion. Please continue to work on your points further, either finding more evidence to support it or new points to be added into your report. 

Just a heads up, in Stage 2, you will move on to look at how the fast food industry impacts the Vietnam economy and how Vietnam help this industry to grow.