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few large chains, the top 5 chains account for above 70% of market share. While again it was not identical in other markets. Buyer needs and requirements The case identify the trends impacting the fast food industry, which is identical in international markets, such as Customers focusing on value, customers more concern on the quality of the food. Production Capacity Surplus capacity and overcrowded competitors are 2 dimensions considered under this dimension, there was no evidence in the case to support either of the dimensions above in US market, because it was dominant by a few large companies, and most of the companies had steady expansion over years, so this is not a dominant feature for fast food industry. Pace of technological change The case did mention that the emerging of microwave oven technology in early 90's, one of the signs of technology advances, had some impacts to the fast food industry, however, The impact in this aspect was limit, one of the powerful evidences is the major players in the fast food industry still have steady growth and expansion since that, so this is not a dominant feature for fast food industry. Vertical integration There was no evidence in the case to show that the major players in the fast food industry to win the competitive edge through partially and fully integrated, so this is not a dominant feature for fast food industry either. Production innovation As case indicated 'In response to the increasing competitive and customer tastes changing, most of major players in the industry have to spend efforts to offer healthier menu Degree of product differentiation The degree of product differentiation became less, it is easier for the player in fast food industry or even the food industry to clone the other's product and proved successful methods, the value menu and gourmet salads are two good examples illustrated in the case, so this is not a dominant feature as well. Economies of scale This is not a dominant feature because most of major players experienced price war and none of them over beat their competitors through it, As case indicated that the largest players within the industry shifted their competitive tactics to focus on building customer loyalty by updating menu items, increasing efficiency and improving service. Learning and experience curve effects Within the fast food industry, there is no such activity or any company have significant cost advantage because a company's experience in performing the activity builds or because of their experience in performing particular activities. So this is not a dominant feature for fast food industry. Based on the above analysis, we can summarize the dominant features of fast food industry exist in Market size and growth rate, Scope of competitive rivalry, number of rivals, buyer needs and requirements and product innovation, each feature will be analyzed in the body respectively. Appendix 2: The rivalry among competing sellers In order to measure the intensity of the rivalry of fast food industry, This report will firstly listed the indicators mentioned by Thompson (2005, p. 53) that will intensify the rivalry in the column "indicators" and then using the facts from the case to match those indicators, which will be listed in the column "case facts" and also finally based on the extend of the facts, scoring the intensity of each indicator from 0~9, so that we can have fair straightforward feeling on the intensity of rivalry of fas