Starting in this competitive industry in New Zealand is not easy as you need to think about several aspects before starting a fast food franchise. Indeed, it requires a significant amount of investment, for example, the purchase of property, plant and machinery, compliance with laws and regulations and numerous other factors. Last year McDonald's maintained its strong position as the leading franchise in New Zealand due to its controlling position in the hamburger category, "where it accounted for 49% of value sales during the year" (Euromonitor, 2016). Therefore, when new companies compete with leading outlets such as McDonalds, their brand is unfamiliar to many consumers compared to the immensely popular outlets. In which, brand development, like advertising campaigns, can be extremely expensive and has low strength in this industry. Since, reputable chains have the capital to react forcefully through pricing and promotions, as this will discourage new competitors from entering the market. Where new businesses cannot compete with established companies. That said, new entrants do not have the economies of scale that current outlets have formed over the period, and are only leveraging them to remain competitive in this high-revenue, low-margin industry. Therefore, entering the fast food industry is quite difficult, which ensures that the threat of new entrants has low strength but positive strength. Since then, there are no legal barriers put in place by the New Zealand government. Therefore the overall strength is positive for the existing fast food industry as is the likelihood of additional competitors