McDonald's is the world's #1 fast-food company by sales
Serving burgers and fries, it operates more than 34,000 flagship restaurants http://www.unitedworld.edu.in/
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Porter's 5 forces on Mac D
1. A PRESENTATION ON
MCDONALD’S
GROUP MEMBERS
ATRI ROY
NEHA SINGH
ABHIJIT ROY
NILESH SAHA
TAPASI SARKAR
2. COMPANY BACKGROUND
The First McDonald’s was built in 1940.
Ray Kroc was the First Franchisee appointed by the original
McDonald brothers, Dick and Mac.
He opened his first restaurant in Des Plaines, Illinois.
The company motto became “Quality, Service, Cleanliness and
Value” (QSCV)
3. CURRENT STATUS OF COMPANY
McDonald's is the world's #1 fast-food company by sales
Serving burgers and fries, it operates more than 34,000 flagship
restaurants
It serves in more than 119 countries on six continents.
On a day-to-day basis, more than 47 million customers world-wide
are served
Employs more than 1.5 million people.
More than 80% of McDonald’s restaurants worldwide are owned and
operated by independent local men and women.
4. PORTER’s FIVE FORCES ANALYSIS
Formed by Michael E. Porter of Harvard
Business School in 1979.
Helps in analyzing the Industry and the
Business Strategies being taken by the
Company.
5.
6. PORTER’s FIVE COMPETITIVE FORCES
Competition Within Industry:
KFC, Pizza Hut, Dominoes, Subway
Sandwiches Prepared Meals.
Fast Food Centers.
Online presence – Company Info, Home Delivery, Better Combo
Deals.
New Entrants:
McDonald’s has market dominance (over 30,000 restaurants
world-wide)
Economies of scale force new entrants to enter at a cost
disadvantage.
High Competition
Easy To Entry For New Comers.
7. PORTER’s FIVE COMPETITIVE FORCES
Threat Of Substitutes:
Fast Food Centers.
Healthier Alternatives.
Unique Products
Substitute for Coffee, Cold Drinks available at Cheaper Rates.
Bargaining Power Of Customers:
Pay Attention to Customer Demands and Trends.
Offer Specialty Products for Certain Segments.
McDonalds Focus on Special Tastes and Preferences on Customer
Choice.
Customer May Shift From Mc Donald’s To Another Brand as They
Have High Bargaining Power.
8. PORTER’s FIVE COMPETITIVE
FORCES
Bargaining Power of Suppliers:
McDonald’s relies on strong Supplier and Distributor
relationships.
Help Suppliers lower costs.
Develop New Supplier Base to reflect Customer
Diversity.
Suppliers include: Coca-Cola, Heinz.
9. CONCLUSION
The goal is to become customers favourite
way and place to eat and drink by serving the
best.
Due of its financial power McDonalds could
move into to other industries/products at any
time.
Due to its high demand, company can
introduce new products or items i.e. Product
Development.