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Consider restaurants in your local market that are open now or have been open in the last five years. Answer the following questions regarding sustainable competitive advantage.

1. Are you aware of any restaurants in your market that have failed/closed over the past few years? If so, why do you think that these restaurants failed/closed?

2. What restaurants are highly successful in your market? What factors do you think account for their success? Have any of these restaurants been successful for more than five (5) years?

3. Pick two local restaurants that are quite different from one another in terms of menu, pricing, and/or atmosphere. Try to identify the direct competitors (strategic group) for each of these restaurants.

These three questions consider factors that might play a role in determining competitive success (sustainable competitive advantage) or failure. Item #3 should help you to begin to see strategic groups within the local restaurant market.

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