McDonald's Porter Five Forces

Merica Willis
Note by Merica Willis, updated more than 1 year ago
Merica Willis
Created by Merica Willis over 5 years ago


A levels Business Note on McDonald's Porter Five Forces, created by Merica Willis on 11/01/2015.

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Threat of Competition= HIGH Very Competitive Fast Food Industry with many Competitors, e.g. KFC (Yum) Competitors possess strong advertising strategies, e.g. Burger King discounts provided on bus tickets Strategic Location of Outlets, like busy town centers Threat of New Entrants= HIGH Regulation of Limits Low start up costs means easy access into the market, e.g Threat of Substition=Low-Moderate Maccys has a certain way that it does things, that differentiates it from all other competitors Maccys provides entertainment for Kids birthday parties, another form of differention via service Minimizes threats buy the introduction of Local tastes, such as the Five weeks Five Burgers or the Sub of the Day

Power of Supplier= LOW It's the world's largest restaurant in Sales They would operate using Economies of Scale/Buying in Bulks A lot of the Suppliers rely of Maccys for their existence Power of Buyers= LOW Buyers don't have bargaining power, as the prices are fixed Industry Limitations Products Differentiation, High brand Image, and Uniqueness lessens chances of switching Low quantity purchases?

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