Porter’s five forces-mcdonalds

Post on 16-Apr-2017

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Transcript of Porter’s five forces-mcdonalds

PORTER’S FIVE FORCES

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

INDUSTRY COMPETITORS

IN INDIA

POWER OF BUYERS STRONG

POWER OF SUPPLIERS WEAK

THREAT OF SUBSTITUTESTRONG

THREAT OF NEW ENTRANTS WEAK

WHO ALL SELL BURGERS IN INDIA ???

COMPETITIVE RIVALRY WHY STRONG ?

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

capabilities

BARGAINING POWER OF BUYERS

WHY STRONG ?

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

THREAT OF SUBSTITUTE

WHY STRONG ?

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

BARGAINING POWER OF SUPPLIERS

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

MAJOR SUPPLIERS

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

WEAK -WHY?

• MODERATE CAPITAL COST • BRAND LOYALTY • NO DESI FEELING

THREAT OF NEW ENTRANTS

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

INNOVATIONS & REGIONAL PREFERENCES

LOCAL TASTE ATTRACTING KIDS

PRICING AS PER MARKET

CELEBRITY ENDORSEMENTS

INHOUSE EXPERIENCE

CUSTOMIZATION

COMPETING WITH OPPONENTS

STARBUCKS DOMINOS/PIZZA HUT