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PORTER’S FIVE FORCES

Porter’s five forces-mcdonalds

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Page 1: Porter’s five forces-mcdonalds

PORTER’S FIVE FORCES

Page 2: Porter’s five forces-mcdonalds

ABOUT COMPANY •Mc Donald's is the global fast food chain

•Entered India in Oct. 1996.

•They are the world’s largest food service chain

•Very diversified range of products

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INDUSTRY COMPETITORS

IN INDIA

POWER OF BUYERS STRONG

POWER OF SUPPLIERS WEAK

THREAT OF SUBSTITUTESTRONG

THREAT OF NEW ENTRANTS WEAK

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WHO ALL SELL BURGERS IN INDIA ???

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COMPETITIVE RIVALRY WHY STRONG ?

• High number of firms • High aggressiveness of firms• Low switching costs• Opponents advertising

capabilities

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BARGAINING POWER OF BUYERS

WHY STRONG ?

• Choices allow customers to seek out competitors • Low switching cost • Large no of providers • Substitutes

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THREAT OF SUBSTITUTE

WHY STRONG ?

• HIGH SUBSTITUTE AVAILABILITY • HIGH PERFORMANCE UPON COST• LOW SWITCHING COST

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BARGAINING POWER OF SUPPLIERS

WHY WEAK ?• Large no of suppliers • High overall supply

MAJOR SUPPLIERS

• Raw materials • Builders • Restaurant designers • Beverages(coke products)

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WEAK -WHY?

• MODERATE CAPITAL COST • BRAND LOYALTY • NO DESI FEELING

THREAT OF NEW ENTRANTS

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WHAT TO DO ?• Creating greater value through innovation & cultural

consideration • Enhancing the overall in house experience.• Customized burgers option in outlet• Competing with opponents like Starbucks ,KFC,DOMINOS

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INNOVATIONS & REGIONAL PREFERENCES

LOCAL TASTE ATTRACTING KIDS

PRICING AS PER MARKET

CELEBRITY ENDORSEMENTS

INHOUSE EXPERIENCE

CUSTOMIZATION

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COMPETING WITH OPPONENTS

STARBUCKS DOMINOS/PIZZA HUT

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