The Five Forces Model Of Mcdonalds

786 Words4 Pages
The five forces model of Porter is an analytical tool that identifies the five forces industry utilizing the intensity of competition in an industry, and its profitability. I have chosen fast food chain of McDonald for my five forces Porter analysis. MCDONALD’s FAST FOOD CHAIN The McDonald's global position in the market of fast food is result of the company's effectiveness to respond to the five forces in the industrial environment. When analyzing the five forces of the McDonald, the focus is on the industry of fast food restaurants. The industry environment interacts with McDonalds to influence the company's potential and success. The analysis of Porter's five forces McDonalds is as under:- 1. Competitive Rivalry (strong force) McDonald…show more content…
This element of the analysis Five-forces deals with the possible effects of substitutes in the growth of the company. There are many substitutes for McDonald's products, such as products artisan food manufacturers and local bakeries. Consumers can also cook their own food at home. It is also easy to change from McDonalds to this replacement (low switching costs). In the case of McDonalds, the following external factors make the threat of substitution a strong force: a. High availability of replacement b. Low conversion costs c. High-performance ratio / cost 5. Threat of new entrants or new entry (moderate force) New participants can impact the market share of McDonalds. This element of the analysis of the five forces refers to the impact of new players in existing companies. Due to the low exchange costs, consumers can easily move from McDonalds to new company fast food restaurants. In addition, make moderate capital costs a new restaurant, it is relatively easy for small and medium-sized enterprises to concern McDonalds. In the case of McDonalds, moderate threat from the new entry is due to the following external factors: a. Low conversion costs b. Costs Moderate c. High cost of brand development
Open Document