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Copy of McDonald's Porter's Five Forces Model

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mano sweet

on 28 April 2014

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Transcript of Copy of McDonald's Porter's Five Forces Model

Very High

High Economies of scale

Excess Distribution

Easy Access Market

Low Start-up cost

Regulation of limit

High Advertising and Marketing

E.g. Subway
Bargaining Power of Suppliers

Consistency among its products

Equivalent Reliance

Availability of Products according to culture , area
Threat Of Substitues

Low switching Cost

Variety of Products availability

Healthier Alternatives

Easting and Entertainment

World's largest chain of hamburger fast food restaurants

68 million customers in 119 countries

Begin in 1940

As barbecue restaurant by Richard and Maurice McDonald

Annual revenues of $27.5 billion

Profits of $5.5 billion

Sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts
Cheeseburger , Double Cheeseburger, McDouble, Big N’Tasty, McNifica, McChicken, Premium chicken sandwiches, Snack wrap, Chicken McNuggets etc

Bargaining Power of Buyers
Porter's Five Forces Model
Industry Analysis

Business Strategy Development

Determine Competitive Intensity

Attractiveness of a Market
Threat of New Entrants

Less Chances of switching

Industry Limitation

Low quantity Purchases

High brand Image


Customer Loyalty
Threat of Competition

Very competitive Fast Food Industry

Competitors Advertising Capabilities

Location of Outlets


Similar Quick Services
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