Porter's 5 Forces McD
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Diagram of Porter's 5 Forces SUPPLIER POWER Availability of products according to culture Importance of volume to supplier Most of them exists because of industry Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs BARRIERS TO ENTRY(Low) Economies of Scale required to succeed High Capital requirements Existing big Brands Expected retaliation Proprietary products THREAT OF SUBSTITUTES Low Switching costs Variety available Healthier alternatives trade-off of substitutes BUYER POWER (Low) Bargaining leverage Buyer volume low Less chance of switching Brand identity Price sensitivity DEGREE OF RIVALRY Very competitive fast food industry Competitors Advertising capabilities Location of outlets Major competitors
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Porter 5 Forces for Mc Donald's
Transcript of Porter's 5 Forces McD
Diagram of Porter's 5 ForcesSUPPLIER POWER
Availability of products according to cultureImportance of volume to supplier
Most of them exists because of industry Impact of inputs on cost or differentiation Switching costs of firms in the industry
Presence of substitute inputs
BARRIERSTO ENTRY(Low) Economies of Scale required to succeed
High Capital requirements Existing big Brands Expected retaliation Proprietary products
THREAT OFSUBSTITUTES Low Switching costs Variety available Healthier alternatives trade-off of substitutes
BUYER POWER (Low)Bargaining leverage
Buyer volume lowLess chance of switching
Brand identity Price sensitivity
DEGREE OF RIVALRY Very competitive fast food industry Competitors Advertising capabilitiesLocation of outletsMajor competitors
New entrants: Low threat because of McDonald’s big market share (they’re market
leader) and popularity all over the world
Buyers: Low threat because of brand image, low quantity purchase, industry limitations
Suppliers: Low threat because they have high bargaining power over their customers
and are the largest fast food chain on the market
Substitutes: Low/medium threat because there high availability to McDonald’s and it
combines eating and entertaining, so it’s different from others. Also the brand is known
and liked.
Industry competitors: Burger King, Subway, KFC, pizzerias. Medium threat because
it’s competitive, but McDonald’s is still the market leader.
