Executive Summary This paper includes a brief analysis of Checkers & Rally’s, one of the leading fast-food chains in the USA. The company’s major competitive advantages are low prices and fast service through the double drive-thru. However, the company should consider such steps as vertical integration, innovation in the sphere of services and products provided, the system of control mechanisms, expansion to other markets to remain competitive. External Analysis Checkers & Rally’s is operating in the mature market that is highly competitive. It is possible to carry out an external analysis based on Porter’s model. According to Porter, five major forces affect any company: the threat of entry, supplier power, buyer power, threat of substitutes and competitive rivalry (Hill & Jones, 2012). It is necessary to note that the threat of entry is quite serious as many entrepreneurs, as well as well-established businesses, are eager to enter the market and expand. Checkers & Rally’s has quite a conventional menu for a fast-food restaurant, and, hence, it may face considerable competition in the future. As far as the bargaining power of suppliers is concerned, it is necessary to note that the company has a reliable partner in this respect. Checkers & Rally’s collaborates with McLane Food Service, which is one of the leading supply chain services in the country ( Checkers/Rally’s selects McLane for food distribution , 2009). Clearly, McLane totally satisfies the needs of the fast-food chain as it leads to a significant reduction of costs. At the same time, reliance on one supplier can be associated with certain risks as in case the supplier fails to provide its services (bankruptcy, force major, misunderstanding between the partners and so on), Checkers & Rally’s can fail to provide its services properly. The position of the fast-food chain seems more secure when it comes to the bargaining power of buyers. The USA fast food industry is well-established, and Americans have developed the culture of dining out (Turenne, 2009). They see it natural to spend some amount of money to dine at a restaurant rather than cook the meal at home. At that, low prices of Checkers & Rally’s ensure that customers will afford the food provided. It is necessary to note that the threat of substitute is quite serious as the chain does not have any special item. Checkers & Rally’s provides conventional fast food items that are also offered in other places. This poses some threats of substitution. It is also noteworthy that people tend to change their eating habits and try to consume healthier food (Turenne, 2009). There are chances that soon people will stop buying hamburgers and will order salads and green tea. As has been mentioned above the foodservice market is saturated and very competitive and, hence, Checkers & Rally’s has to face stiff competition (Turenne, 2009). Such well-established brands as McDonalds, Burger King, Wendy’s and many others are known worldwide and have become a part of the American life. These fast food chains have better coverage in the USA, and they have an extensive network of restaurants worldwide. When considering external factors affecting a company, it is also essent