McDonald's entered the Indian market in 1996 and faces strong competitive rivalry and threat of substitutes according to Porter's Five Forces analysis. Competitive rivalry is strong due to the high number of fast food competitors, aggressive marketing, low switching costs between brands, and competitors' advertising abilities. The threat of substitutes is also strong given the high availability and performance of alternatives like Starbucks, KFC, Domino's, and Pizza Hut at a lower cost to customers. McDonald's bargaining power over suppliers is weak, however, due to many alternative raw material, builder, and designer suppliers in the industry.

1. PORTER’S FIVE FORCES

2. 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

3. INDUSTRY
COMPETITORS IN
INDIA
POWER OF BUYERS
STRONG
POWER OF SUPPLIERS
WEAK
THREAT OF SUBSTITUTE
STRONG
THREAT OF NEW ENTRANTS
WEAK

4. WHO ALL SELL BURGERS IN INDIA ???

5. COMPETITIVE RIVALRY
WHY STRONG ?
• High number of firms
• High aggressiveness of firms
• Low switching costs
• Opponents advertising
capabilities

6. BARGAINING POWER OF BUYERS
WHY STRONG ?
• Choices allow customers to
seek out competitors
• Low switching cost
• Large no of providers
• Substitutes

7. THREAT OF SUBSTITUTE
WHY STRONG ?
• HIGH SUBSTITUTE AVAILABILITY
• HIGH PERFORMANCE UPON COST
• LOW SWITCHING COST

8. BARGAINING POWER OF SUPPLIERS
WHY WEAK ?
• Large no of suppliers
• High overall supply
MAJOR SUPPLIERS
• Raw materials
• Builders
• Restaurant designers
• Beverages(coke products)

9. WEAK -WHY?
• MODERATE CAPITAL COST
• BRAND LOYALTY
• NO DESI FEELING
THREAT OF NEW ENTRANTS

10. 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

11. INNOVATIONS &
REGIONAL PREFERENCES
LOCAL TASTE ATTRACTING
KIDS
PRICING AS
PER MARKET
CELEBRITY
ENDORSEMENT
INHOUSE
EXPERIENCE
CUSTOMIZATION

12. COMPETING WITH
OPPONENTS
STARBUCKS
DOMINOS/PIZZA
HUT